BVV 2 compliant

There are providers of occupational benefit funds which divide their funds into BVV 2 compliant and non-BVV 2 compliant occupational benefits funds. With the compliant BVV 2 pension funds, they refer to funds that invest less than 50 % in shares. Non-BVV 2-compliant funds are those with a higher proportion of shares.

The division into compliant and non-compliant is confusing, as all pension funds must comply with the provisions of the Ordinance on Occupational Retirement, Survivors’ and Disability Pension Plans (BVV 2). However, to be able to offer funds with a higher proportion of shares, the pension fund must prove that it can bear higher risks. It can then make use of the extension options according to Article 50, paragraph 4 BVV 2.

Among other factors, if the pension fund does not engage in any proprietary trading but purchases securities solely on behalf and for the account of the client, it can extend the investment ranges.