Asset management industry groups from five EU countries - including the Irish Association of Investment Managers - have called on the EU to drop its plans to introduce quantitative restrictions on pension funds.

A letter sent by industry associations in France, Germany, Ireland, Spain and Britain to EU Commissioner, Mr Mario Monti, calls for asset allocation decisions to be made solely on the basis of prudence.

The group said quantitative restrictions would have significant negative effects, such as inflexibility, effect of returns, on competition, on the efficient allocation of capital and on costs and jobs.