Risk Based Supervision of Pensions: The Experience of Early Adopters
Session III - International dynamics in pension governance, pension supervision and government protection
9.00 - 10.00 Lecture III.1 Richard Hinz (The Worldbank)
Risk based supervision methods originate primarily in relation to Banking. In the past decade they have been extended to other types of financial intermediaries including pension funds. The trend toward risk based supervision of pensions is closely associated with movement toward the integration of financial services into a single national authority. Although very similar in principle to the techniques developed in banking, the application to pension funds in some settings involves some variations in motivation, emphasis and methods to address the requirements and objectives relevant to pension funds.
This paper, derived from a joint World Bank and IOPS review of the development of risk based supervision of pension funds, examines the design and operation of these programs in a range of different settings in which they have been adopted over the past decade. The countries examined provide a range of experience that illustrates both the diversity and commonality of these approaches through consideration of differences arising from the underlying structure of the pension system and the design and application of the methods.
The paper provides an overview description of pension supervision in Mexico, Australia, Denmark and the Netherlands, some preliminary observations regarding the potential effects of the introduction of the approach and identifies key challenges to be addressed as the methods become more widely implemented in the future.
Abstracts
- Lecture I.1 - Luis Viceira
- Lecture I.2 - Jon Exley
- Lecture I.3 - Jeremy Gold
- Lecture II.1 - Raimond Maurer
- Lecture II.2 - Matthias Weiss
- Lecture II.3 - David Blake
- Lecture III.1 - Richard Hinz
- Lecture III.2 - Keith Ambachtsheer
- Lecture III.3 - Zvi Bodie
- Lecture III.4 - Lans Bovenberg
- Key note speech - Lucas Papademos
