<strong>NIGEL CALLAGHAN </strong>HARGREAVES LANSDOWN<br />This is currently draft legislation and insurers, via the ABI, are pretty strongly lobbying the EU that these rules are way over the top. The current UK rules are pretty well developed. The UK is a far more mature market than some of the European countries. The 20 per cent &ndash; that is a very very worst-case scenario. And, it will have a bigger impact on those who are further from retirement. <br /><br /><strong>DAVID TRENNER </strong> INTELLIGENT PENSIONS<br />The rules could be problematic. However, if you look at Canadian annuity companies operating in the UK they have historically been very popular and they are forced to hold much higher levels of low-risk, high-liquidity assets. Companies like Canada Life have done well through investment in instruments like gilts due to the severe rules so perhaps in the long-term the EU rules may pay off.<br /><strong><br />MIKE MORRISON </strong> WINTERTHUR<br />If a pension scheme, because of Solvency II, has to make sure it is more fully funded it would have to invest more in things like gilts and therefore the returns will be lower. With regard to the 20 per cent figure, I wouldn&rsquo;t say that will happen immediately, although I can see that if you were forced to do far too much mark-to-market it might cost 20 per cent.