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02 November 2010

IOPS stressed the importance of risk-based supervision


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Die Internationale Organisation für Aufsichtsbehörden zur Altersversorgung, IOPS, hat eine Reihe von Standards und Mechanismen entwickelt, um Aufsichtstechniken weltweit zu stärken. Dazu gehört auch die Einführung eines risikobasierten Ansatzes für die Aufsichtsbehörden.


The IOPS ‘Principles for Private Pension Supervision’ were revised, bringing these key standards up to date with the IOPS body work which has been built up since their original approval in 2005. The revised Principles also take account of lessons learnt during the financial and economic crisis. In relation to the revised Principles, Mr Ross Jones, President of the IOPS and Deputy Chairman of the Australian Prudential Regulation Authority (APRA) said: “The IOPS felt it was important to revise the Principles in light of our collective experience and lessons learnt during the recent volatile years.  Pension supervisors learned that we need to apply risk-based supervision principles in a manner to avoid pro-cyclical impacts which might make already difficult situations worse. We also learned the importance of communication — not only with our supervised community and with supervisory authorities covering other financial sectors, but also with the general public — primarily stressing the message that pensions are long-term products and that short-term decisions can be harmful. We hope the revised Principles will highlight the importance of effective pension supervision around the world and help integrate the work of the IOPS with other key financial oversight bodies.”
To help pension supervisors operate more efficiently and effectively, the IOPS Toolkit for Risk-based Supervision was also launched. This on-line tool is meant as a practical guide, assisting pension supervisors introducing this new technique, which aims to identify weaknesses and potential problems before they occur, rather than following up on non-compliance and complaints after the event.
Commenting on the launch of the Toolkit, IOPS Technical Committee Chair, Ms Solange Berstein, Superintendant of Pensions in Chile, said: “The Toolkit represents a major piece of work for the IOPS, building on extensive contribution from many member countries and providing practical assistance to supervisors around the world as they follow their peers in other financial sectors in adopting these innovative techniques. In Chile, though the implementation process has been challenging, we have learnt much from our international colleagues and are finding the new techniques invaluable. I look forward to the Committee adding further practical examples and country experiences to the Toolkit in the coming years.”
At the AGM, Ms Berstein was reappointed to serve a further two years as Chair of the IOPS Technical Committee, whilst Mr Edward Odundo, Chief Executive of the Retirement Benefits Authority in Kenya, was reappointed IOPS Vice President. Representative authorities from Hungary, Kenya, the Netherlands, South Africa and Turkey were elected to serve on the IOPS Executive Committee.


© IOPS - International Organisation of Pension Supervisors

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