The chief executive of APG, the biggest Dutch pension fund manager and one of Europe’s largest investors, has called on regulators and policy makers to be more aware of unintended risks when designing regulation, as he warned funding rules for the €1.2 trillion Dutch pensions sector will become a particular problem if and when interest rates rise.

Speaking at the International Capital Market Association's annual conference in Amsterdam on Thursday, Dick Sluimers, CEO at €424 billion manager APG cautioned: "There is considerable risk that policy makers are regulating the world of today, and not the world of tomorrow. Risks don't disappear by making regulation stricter, they will inevitably appear somewhere else in another form, like in an air cushion - underpinning the instability of our financial system."