Risk-Based Supervision of Pension Funds : A Review of International Experience and Preliminary Assessment of the First Outcomes
This paper provides a review of the design and experience of risk-based pension fund supervision in several countries that have been leaders in the development of these methods. The utilization of risk-based methods originates primarily in the supe...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/01/8968875/risk-based-supervision-pension-funds-review-international-experience-preliminary-assessment-first-outcomes http://hdl.handle.net/10986/6474 |
| Summary: | This paper provides a review of the
design and experience of risk-based pension fund supervision
in several countries that have been leaders in the
development of these methods. The utilization of risk-based
methods originates primarily in the supervision of banks.
In recent years it has increasingly been extended to other
types of financial intermediaries including pension funds
and insurers. The trend toward risk-based supervision of
pensions is closely associated with movement toward the
integration of pension supervision with that of banking and
other financial services into a single national authority.
Although similar in concept to the techniques developed in
banking, the application to pension funds has required
modifications, particularly for defined contribution funds
that transfer investment risk to fund members. The
countries examined provide a range of experiences that
illustrate both the diversity of pension systems and
approaches to risk-based supervision, but also a commonality
of the focus on sound risk management and effective
supervisory outcomes. The paper provides a description of
pension supervision in Australia, Denmark, Mexico and the
Netherlands, and an initial evaluation of the results
achieved in relation to the underlying objectives. |
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