The draft good practices are addressed to both pension funds and the public authorities responsible for their regulation and supervision.

In the first place the good practices encourage the establishment of robust and efficient risk-management policies and techniques to measure risks associated with this activity, the implementation of appropriate internal governance processes and risk control procedures, the conduct of due diligence investigation when assigning such investments to external asset managers, and the promotion of open communication with shareholders on the results and costs of the use of alternative investments and derivatives. The good practices also provide guidance with respect to specific legal/regulatory measures and supervisory policies to limit and monitor the risks of these instruments efficiently.

The draft guidelines reflect the views of the OECD 34 countries' Delegations representing private pension regulatory and supervisory authorities, as well as other countries (Brazil, Russian Federation and South Africa) that have observer status in the WPPP and 64 IOPS Members, involved in supervision of private pensions arrangements from around 70 countries.

Comments should be sent to the IOPS/OECD Secretariat by 9 September 2011.

Full consultation paper