Expiration of pension fund restrictions may lead to price war to lure clients

clients According to the agreement customers signed with pension funds (OFE) they will be able to change OFE's without any charge beginning in spring 2001. "Some OFE's are decreasing fees from premiums by even 50% after two years," said Pension Funds Supervisory Office (UNFE) spokesman Sebastian Bojemski. This may cause a price war and may tempt many customers to change their pension fund. Two pension funds have already decided to decrease their fees officially and more may follow. "[If] the market forces us to do it, we may consider doing so," said OFE Polsat spokesman Janusz Wolanski. "From the point of view of the OFE member the most important issue is the return on investment ratio and not the amount of the fee they pay," said OFE Zurich Solidarni officials. (Prawo i Gosopdarka, page 1, 9)