Supervision of Pensions. Richard Hinz The World Bank November 16, 2010
|
|
- Dwain Morrison
- 6 years ago
- Views:
Transcription
1 Supervision of Pensions Richard Hinz The World Bank November 16, 2010
2 Basic Elements of Supervision Control of Entry - Licensing Pension Companies Fund Managers and Trustees Custodians, Actuaries and other Service Providers Monitoring Financial Reporting and Auditing Actuarial Reviews On-Site Reviews and Investigations Receiving Complaints & Whistleblowers
3 Elements of Supervision (Cont) Measurement Comparison to Normative Standards Risk Scoring and Evaluation Communication Disclosure Outreach and Education Training
4 Elements of Supervision (Cont) Intervention Notification of Violations Directive Actions Negotiated Resolutions Correction Punitive Remedial Compensatory
5 Determinants of Supervision Many different approaches to supervision have been implemented Will vary by instensity of oversight and pro-active vs re-active style of operation Differences arise from many factors. Some of the more important include: Design of Pension System Number of funds Level of financial market development Legal tradition and rule of law
6 Mandatory Systems Require More Intensive Supervision Less Sophisticated Members Greater Reliance on Pension for Subsistence Fewer Choices Less Market Discipline Voluntary Systems Can Afford Fewer Costs and Require More Flexibility Employer Will Not Enter System If Risks Are Perceived As High Limits of Compensating Differentials Cost of Monitoring and Intervention Will Not be Absorbed by Members
7 More Developed Economies and Large Number of Funds Reduces Intensity More Sources of Information with Greater Reliability Supports Reactive Approach Greater Diversity of Fund Design Limits Potential Intensity of Oversight More Flexible and Process Oriented Rules Not Conducive to Directive/Pro-Active Methods Greater Reliance on Communication and Competition Improves Efficiency Typically higher levels of Financial Capability
8 Financial Market Development Facilitates Less Intensive Oversight More Products Enhance Competition Institutional Development Creates Private Third Party Oversight Financial Accounting Rules Auditors Development and Supervision of Financial Professionals Limits Need for Specialized Pension Supervision Primary Market Regulation Supports Less Intensive Oversight
9 Enhanced Rule of Law Lowers Required Intensity of Supervision Greater Capacity for Individual Rights of Action Limits Need For Supervision Capacity to Achieve ex post Remedial Sanctions Diminishes Requirement for Pro- Active Methods Greater Reliance on Negotiated Process and Litigation
10 Some Basic Relationships For Supervision
11 General Observations on Supervision Effective Monitoring and Control are Essential Wide Range of Feasible Approaches to Measurement an Interventions Some Common Elements and Consistent Patterns of Supervision in Relation to Design and Development Practices Are Significantly Derived From Matching Context With Methods
12 Some Illlustrative Examples United States Highly Reactive - Exception Based Interventions Hungary Moderately Proactive, Exception Intervention Risk Based Supervision : Australia, Mexico, Denmark and Netherlands
13 Basics of U.S. Pension System Voluntary employment based system Wide range of permissible benefit design, DB,DC and Hybrids (eg Cash balance) Supplements modest universal public system 40% Replacement at normal retirement age for average wage, 30% actual due to early retirements Incentives through specific tax qualification rules resulting in complex rules and interactions Current coverage rate of 50% of current full time private sector workforce Lifetime rates may be as much as 70%
14 Regulatory Framework Minimal entry barriers Procedural (prudent person) framework Highly developed and regulated financial markets Multiple levels of financial intermediation
15 Structure of Supervision National Policy, Oversight and Evaluation Unit Ten Regions with Five Sub-Regions Groups (teams) of 8-12 staff conduct activities Participant Assistance Staff located in National Office and all regions
16 Supervision Style Re-active, Remedial, Decentralized Intervention on Exception Basis - Weak legal authority for pre-emptive actions No legal authority for punitive or compensatory sanctions Emphasis on negotiation based settlements Civil litigation required to impose monetary sanctions (except for reporting violations)
17 Basic Strategies Reliance on deterrence Leverage limited resources Focused Agenda - Strategic Case Selection Voluntary Compliance & Assistance Mandatory Indemnification/Insurance Outcome oriented measurement and evaluation
18 Reasons for Approach Voluntary System Tension Between Security and Coverage Low Resource Levels Relative to Scope of Responsibilities Regional Diversity in Types of Funds and Service Providers Variation in Interpretation of Statute by Jurisdiction Strong Regulation of Primary Financial Products Tradition of Individual Civil Litigation and Exercise of Rights
19 Major Challenges Political Acceptance Of the Inability To Address All Violations Tolerance of a Significant Degree of Agency Risk Resource Rationing Sustaining Strategic Objectives Policy Consistency Over Time and Among Regions Reconciling Conflicts With Other Regulated Sectors
20 Basics of Hungarian Pension System Recently downsized Public System Providing Basic Coverage Mandatory Defined Contribution Funds Established Carve Out of Social Insurance Contribution for Younger Workers and New Entrants Voluntary Funds Established 1993
21 Regulatory Framework Licensing of Pension Fund Companies Mutual Organization Joint Boards Quantitative Asset Allocation Requirements Minimum Rate of Return Relative to Universe of Funds Reserve Account to Balance Decentralized Flow of Funds
22 Structure of Supervisor Integrated Agency (since 2000, began separate) Financed by Fees on Funds Matrix Organization Functions X Type of Institutions Separation of Institutions Chinese Wall
23 Style of Supervision Moderately Pro-Active Extensive Reporting Requirements Daily Fund Balances, Annual Comprehensive Financial Focus on Negotiated Preventive Measures Punitive Sanctions by Decree of Supervisor Emphasis on Publication of Sanctions Market Forces
24 Supervision Methods Quarterly Publication of Legal Interpretations Required Attendance of Supervisor at Board Meetings Monthly Preventive Meetings With Managers Informal Advice and Counsel Quarterly Analysis of 80 Financial Ratios and Management Indicators Full Inspection 1-2 Years Application of Sanctions Only After Failure of Voluntary Compliance
25 Reasons For Approach Balance of Emerging Market and New System Seeking to Enhance Market Competition New System Concerns About Depth of Political Support Trend to Consolidation Concerns About Concentration Limitation of Entrants to Well Capitalized Financial Institutions Strong Public Guarantee Backs Fund Companies performance
26 Risk Based Supervision Recent Innovation Rapidly Advancing in a Range of Settings Strongly Influenced by Trends in Bank and Insurance Regulation and Developmentof Integrated Supervisory Authorities Early Adopters (WB Paper): Netherlands, Mexico, Australia, Denmark, Canada Others (IOPS Paper): UK, Germany, South Africa, Croatia, Kenya
27 Characteristics of Four Systems Mandate Cover % Assets %GDP Number of Funds Legal structure Type of Plan Netherlands Quasimandatory Occupational Mostly DB Denmark Quasimandatory Occupational and open 1 Mostly DC with absolute return guarantee (DBlike) Australia Mandatory ,004 Occupational and open 2 DC Mexico Mandatory Open DC with ceiling on downside risk (VaR)
28 The Basic Risk Management Architecture For the institution: Risk management strategy Board committees Risk management functions in the managerial structure Internal controls Reporting responsibilities For the supervisor: Regulations, including minimum risk management standards Risk-based solvency rule Risk scoring model guiding supervisory actions Internal organization of the agency, with specialist risk units Market Discipline: The contribution of the actuary, auditor, fund members, rating companies, and market analysts to sound risk management
29 Main Elements of RBS Requirements for risk management process within institutions Solvency standards and stress testing Risk scoring methodology Disclosure and market competition Use of third party reviews Organization of supervisor
30 Risk Management Structure and Procedures Netherlands Risk management plan at registration Centralized function & Accountability of board Denmark Guidelines and plan by Board of Directors Australia Guidelines and risk management plan at licensing. Trustee licensing standards Mexico Specific requirements for policies, procedures, risk management committees and Chief Risk Officer
31 Solvency Standards Netherlands (FTK) Annual market value solvency plus 5% margin Solvency buffer stress test Less than 2.5% probability of insolvency Long term continuity Wage growth, rate of return Recovery period maximum: One year for margin, 15 for stress test Denmark Traffic lights stress test Red Light: Insolvent with decline of 12% equities, 8% real estate, duration based for fixed income Yellow light: 30% equities, 12% real estate Indicator of increased attention rather than trigger for required actions Mexico Value at Risk (VaR) limits, Daily standard: 0.6% for standard portfolio, 0.1% for higher risk portfolio Directive action by supervisor when limit is exceeded, so far has not happened
32 Risk Scoring Methods Netherlands (FIRM) Integrated system applied to all financial institutions Standard templates and default scores as starting point Inherent risk mitigation = net risk Specific consideration given to management quality and risk management procedures Australia (PAIRS & SOARS) Risk scores mapped into supervisory response matrix response is less structured than evaluations Distinction by fund size Probability and impact treated separately
33 Third Parties and Market Discipline All systems use third parties auditors and to varying degrees require assessment of risk management capacity All impose whistle blower obligations to varying degrees New accounting standards and regulatory requirements strengthen movement to market valuations Mexico has extensive monthly disclosure consistent with open funds based system Denmark has annual disclosure including risk assessment Netherlands and Australia have less reliance on disclosure reflect occupational origins and DB character
34 Organization of Supervisor Australia, Denmark and Netherlands are integrated supervisors to varying degrees Denmark combines life insurance and pensions in operating division similar to organization of funds Australia has little specialization of divisions Netherlands has modified matrix - dedicated pension fund units supported by centralized risk assessment technical units Mexico remains separate pension fund authority
35 Initial Assessmentof Risk Based Methods Offer Promise of : Efficiency Gains in Investment of Funds Assets Lower Interventions and Supervisory Costs Flexibility to adress differing needs with in same supervisory system Alignment of Pension with other Financial Supervision Integration of Authority Political economy of relaxing restrictions Challenges: Aligning risk standards with retirement income Potential pro-cyclical nature of systems Accommodating diversity of members risk preferences Adequacy of solvency standards Political economy of acceptable risk levels
36 Concluding Thoughts No Right or Wrong System - Like Good Architecture - Form Follows Function Objective and Tradeoffs Define Systems - Every Approach is Inevitably a Compromise Optimize Through Evaluating Objectives, Structure and Priorities Assume Regulated Will Always Be Well Paid, Creative and Motivated To Find A Way To Get To The Money
Regulation and Supervision of Pension Funds. Richard Hinz March 10, 2014
Regulation and Supervision of Pension Funds Richard Hinz March 10, 2014 Distinction Between Regulation & Supervision Regulation: Legal Foundations and System of Rules and Regulations Governing the Structure
More informationRisk Based Supervision of Pensions: Motivations and Emerging Practices. Richard Hinz The World Bank April 2, 2008
Risk Based Supervision of Pensions: Motivations and Emerging Practices Richard Hinz The World Bank April 2, 2008 What Do We Mean By Risk Based Supervision Focus outcomes of the investment management process
More informationRISK-BASED SUPERVISION OF PENSION FUNDS: Summary of First Four Case Studies
RISK-BASED SUPERVISION OF PENSION FUNDS: Summary of First Four Case Studies Richard Hinz and Roberto Rocha The World Bank IOPS Conference Santiago de Chile; March 30, 2006 Objectives of the Project Provide
More informationRegulation of Pension Funds. Richard Hinz The World Bank November 17, 2009
Regulation of Pension Funds Richard Hinz The World Bank November 17, 2009 Organization Theoretical Foundations Structure and Elements of Regulation Typical Elements of Legislation To Establish Framework
More informationIOPS Toolkit for Risk-Based Pensions Supervision Kenya
Risk-based Pensions Supervision provides a structured approach focusing on identifying potential risks faced by pension funds and assessing the financial and operational factors in place to mitigate those
More informationPENSION REGULATION AND SUPERVISION FOR DEVELOPING PENSION SYSTEMS. Pension Core Course 2015 Fiona Stewart
PENSION REGULATION AND SUPERVISION FOR DEVELOPING PENSION SYSTEMS Pension Core Course 2015 Fiona Stewart AGENDA 1. Structure of pension supervisory authorities 2. Steps to establishing a supervisory framework
More information1 Formerly Head of Strategy at the UK Pensions Regulator and President of the International Organisation of Pensions Supervisors from 2004 to 2007.
Supervision models: trends in pension fund supervision JOhN ashcroft 1 2 1 Formerly Head of Strategy at the UK Pensions Regulator and President of the International Organisation of Pensions Supervisors
More informationMISSION VALUES. This Framework has been printed by:
www.cudgc.sk.ca MISSION We instill public confidence in Saskatchewan credit unions by guaranteeing deposits. As the primary prudential and solvency regulator, we promote responsible governance by credit
More informationPension Diagnostic Assessment Pensions Core Course April 27, Mark C. Dorfman Pensions Team SPL Global Practice The World Bank
Pension Diagnostic Assessment Pensions Core Course April 27, 2015 Mark C. Dorfman Pensions Team SPL Global Practice The World Bank Organization I. Pension Diagnostic Assessment A. Evaluation Process &
More informationPensions Core Course Mark Dorfman The World Bank March 2, 2014
Pensions Diagnostic Assessment and Conceptual Framework Pensions Core Course Mark Dorfman The World Bank March 2, 2014 Organization 1. Diagnostic assessment process 2. Conceptual framework design typology
More informationOSFI Supervisory Model
OSFI Supervisory Model IAIS-ASSAL Regional Seminar 2003 Unclassified Agenda Achieving OSFI s Mission Key Supervisory Framework Principles Development of Rating Sharing of Supervisory Ratings Composite
More informationBasel Committee on Banking Supervision. Consultative Document. Pillar 2 (Supervisory Review Process)
Basel Committee on Banking Supervision Consultative Document Pillar 2 (Supervisory Review Process) Supporting Document to the New Basel Capital Accord Issued for comment by 31 May 2001 January 2001 Table
More informationIOPS/OECD MENA Workshop- February 2 nd 2009
Ross Jones President IOPS Deputy Chairman, Australian Prudential Regulation Authority IOPS/OECD MENA Workshop- February 2 nd 2009 www.iopsweb.org Outline Introduction IOPS Principles of Private Pension
More informationThis document contains the Canadian Case Study.
Canada Risk-based Pensions Supervision provides a structured approach focusing on identifying potential risks faced by pension funds and assessing the financial and operational factors in place to mitigate
More informationCOMMUNIQUE. Page 1 of 13
COMMUNIQUE 16-COM-001 Feb. 1, 2016 Release of Liquidity Risk Management Guiding Principles The Credit Union Prudential Supervisors Association (CUPSA) has released guiding principles for Liquidity Risk
More informationThe Supervison of Defined Contributions Funds: Australia s risk based approach
The Supervison of Defined Contributions Funds: Australia s risk based approach IOPS Mena Workshop 3 February 2009 Ross Jones President IOPS Vice Chair WPPP 1 The Regulatory Challenge DB & DC DB schemes
More informationInternational Trends in Regulatory Capital & Target Surplus. Caroline Bennet - Trowbridge Deloitte Jennifer Lang - CBA
International Trends in Regulatory Capital & Target Surplus Caroline Bennet - Trowbridge Deloitte Jennifer Lang - CBA Agenda Review of Capital Framework International Trends in Regulatory Capital Target
More informationRegulatory Environment and Pension Investment Performance
Regulatory Environment and Pension Investment Performance Ling-Ni Boon 1,2,4, Marie Brière 1,3,4 Carole Gresse 1, Bas J.M. Werker 2 International Actuarial Association Colloquium: Pension Benefits and
More informationSUPERVISION OF PENSIONS - KENYAN EXPERIENCE
SUPERVISION OF PENSIONS - KENYAN EXPERIENCE Presentation by Edward O. Odundo Chief Executive Retirement Benefits Authority Dakar- February 05,2008 THE STRUCTURE OF KENYA S RETIREMENT BENEFITS INDUSTRY
More informationExperiences and Challenges with the Introduction of Risk-Based Supervision for Pension Funds
Working Paper No. 4 1 August 2007 Experiences and Challenges with the Introduction of Risk-Based Supervision for Pension Funds THE INTERNATIONAL ORGANISATION OF PENSION SUPERVISORS FIONA STEWART (OECD)
More informationIOPS TOOLKIT RISK- BASED SUPERIVSION
IOPS TOOLKIT RISK- BASED SUPERIVSION INTRODUCTION TO RISK-BASED SUPERVISION Ross Jones, IOPS President, Deputy Chairman of APRA Skopje, Macedonia, 10 May 2012 2 nd IOPS Regional Workshop on Pension Supervision
More informationOffice of the Superintendent of Financial Institutions Internal Audit Report on Insurance Supervision Sector
Office of the Superintendent of Financial Institutions Internal Audit Report on Insurance Supervision Sector Mortgage Insurance Group (MIG) June 2016 Table of Contents 1. Background... 3 2. About the Engagement...
More informationREGULATORY GUIDELINE Liquidity Risk Management Principles TABLE OF CONTENTS. I. Introduction II. Purpose and Scope III. Principles...
REGULATORY GUIDELINE Liquidity Risk Management Principles SYSTEM COMMUNICATION NUMBER Guideline 2015-02 ISSUE DATE June 2015 TABLE OF CONTENTS I. Introduction... 1 II. Purpose and Scope... 1 III. Principles...
More information11 th Annual International Seminar on Policy Challenges for the Financial Sector
11 th Annual International Seminar on Policy Challenges for the Financial Sector Washington, D.C 1 3 June 2011 Session 2 Improving supervisory intensity and effectiveness in dealing with SIFIs Nor Shamsiah
More informationRepublic of Macedonia
Risk-based Pensions Supervision provides a structured approach focusing on identifying potential risks faced by pension funds and assessing the financial and operational factors in place to mitigate those
More informationBERMUDA INSURANCE (GROUP SUPERVISION) RULES 2011 BR 76 / 2011
QUO FA T A F U E R N T BERMUDA INSURANCE (GROUP SUPERVISION) RULES 2011 BR 76 / 2011 TABLE OF CONTENTS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Citation and commencement PART 1 GROUP RESPONSIBILITIES
More informationINTERNAL CAPITAL TARGET GUIDELINE ANNEX Summary of Consultation Comments and Financial Institutions Commission (FICOM) Responses
INTERNAL CAPITAL TARGET GUIDELINE ANNEX Summary of Consultation Comments and Financial Institutions Commission (FICOM) Responses INDUSTRY COMMENT CATEGORY: GENERAL Capital requirements are already prescribed
More informationBasel II Pillar 2 Supervisory Review Process. Simon Topping Hong Kong Monetary Authority
1 Basel II Pillar 2 Supervisory Review Process Simon Topping Hong Kong Monetary Authority 2 Outline of Presentation Rationale for Pillar 2 Key principles Banks internal capital adequacy assessment process
More informationSoutheastern Actuaries Conference 2012 Annual Meeting. Jeffrey S. Schlinsog, CFA, FSA, MAAA
www.pwc.com November 15, 2012 ERM Topics Southeastern Actuaries Conference 2012 Annual Meeting Jeffrey S. Schlinsog, CFA, FSA, MAAA ERM Topics 1. The development and implementation of the ORSA 2. The contents
More informationLessons from China s Pension Reform Experiences. Mark C. Dorfman. World Bank Pensions Core Course November 13, 2009
Lessons from China s Pension Reform Experiences Mark C. Dorfman World Bank Pensions Core Course November 13, 2009 1 Organization 1. Background - History 2. Overall Structure, Challenges 3. Urban Enterprise
More informationChapter 6: Analysis of control
Chapter 6: Analysis of control 6.1. Introduction The preceding Chapter dealt with the manner in which the relevant risks are analysed for the functional activities distinguished within the organisational
More informationFinally arriving? Pension Reforms in Europe
Finally arriving? Pension Reforms in Europe Chris de Neubourg Tokyo 2010 Finally arriving? Pension Reforms in Europe Chris de Neubourg Innocenti Research Centre, Unicef, Florence October 2010 Drivers
More informationSupervisory Framework JUNE 2012
Supervisory Framework JUNE 2012 The Financial Institutions Commission of British Columbia (FICOM) is a regulatory agency of the Ministry of Finance, established in 1989 to contribute to the safety and
More informationCorporate Governance of Federally-Regulated Financial Institutions
Draft Guideline Subject: -Regulated Financial Institutions Category: Sound Business and Financial Practices Date: I. Purpose and Scope of the Guideline The purpose of this guideline is to set OSFI s expectations
More informationPrudential Standard GOI 3 Risk Management and Internal Controls for Insurers
Prudential Standard GOI 3 Risk Management and Internal Controls for Insurers Objectives and Key Requirements of this Prudential Standard Effective risk management is fundamental to the prudent management
More informationBen S Bernanke: Modern risk management and banking supervision
Ben S Bernanke: Modern risk management and banking supervision Remarks by Mr Ben S Bernanke, Chairman of the Board of Governors of the US Federal Reserve System, at the Stonier Graduate School of Banking,
More informationWHITE PAPER. Solvency II Compliance and beyond: Title The essential steps for insurance firms
WHITE PAPER Solvency II Compliance and beyond: Title The essential steps for insurance firms ii Contents Introduction... 1 Step 1 Data Management... 1 Step 2 Risk Calculations... 3 Solvency Capital Requirement
More informationINTERNATIONAL ASSOCIATION OF INSURANCE SUPERVISORS
Guidance Paper No. 9 INTERNATIONAL ASSOCIATION OF INSURANCE SUPERVISORS GUIDANCE PAPER ON INVESTMENT RISK MANAGEMENT OCTOBER 2004 This document was prepared by the Investments Subcommittee in consultation
More informationTHE INTERNATIONAL ORGANISATION OF PENSION SUPERVISORS (IOPS)
THE INTERNATIONAL ORGANISATION OF PENSION SUPERVISORS (IOPS) PROGRAMME OF WORK AND PROJECT PROPOSALS 2011 1 DRAFT PROGRAMME OF WORK 2011 I. On-going Projects 1. The Technical Committee previously agreed
More informationBuilding public confidence in mandatory funded pensions
33387 World Bank Pension Reform Primer Supervision Building public confidence in mandatory funded pensions T he regulation and supervision of individual pension accounts has been a neglected issue. In
More informationMANAGING AND SUPERVISING RISKS IN DEFINED CONTRIBUTION PENSION SYSTEMS
WORKING PAPER NO. 12 OCTOBER 2010 MANAGING AND SUPERVISING RISKS IN DEFINED CONTRIBUTION PENSION SYSTEMS THE INTERNATIONAL ORGANISATION OF PENSION SUPERVISORS THE INTERNATIONAL ORGANISATION OF PENSION
More informationSolvency Control Levels
International Association of Insurance Supervisors Solvency, Solvency Assessments and Actuarial Issues Subcommittee Draft Guidance Paper Solvency Control Levels Contents I. Introduction...1 II. Minimum
More informationEmerging from the Crisis Building a Stronger International Financial System
Secrétariat général de la Commission bancaire Emerging from the Crisis Building a Stronger International Financial System Session 4: Issues Highlighted by the Crisis: Expanding the Regulatory Perimeter
More informationThe Future of China s Insurance Regulation. Haijing Wang FIA Institute and Faculty of Actuaries
The Future of China s Insurance Regulation Haijing Wang FIA Institute and Faculty of Actuaries Email: haijing@outlook.com 28 July 2014 Agenda An outline of China s Solvency I Technical Framework of C-ROSS
More informationIORP II: what does it mean for UK pensions?
IORP II: what does it mean for UK pensions? Updated November 2018 Pension briefing HIGHLIGHTS The new directive on occupational pension schemes (IORP II) must be implemented in national law by mid-january
More informationRisk based supervision a horse for all courses? Tony Randle, World Bank V Contractual Savings Conference Washington DC, January 9-11, 2012
Risk based supervision a horse for all courses? Tony Randle, World Bank V Contractual Savings Conference Washington DC, January 9-11, 2012 Risk based supervision Themes Are the existing models perfect?
More informationBasel II Pillar II Practice Study The World Bank By Ana María Avilés
Basel II Pillar II Practice Study The World Bank By Ana María Avilés Washington DC October 22, 2018 Outline 1. Basel II Framework 2. Basel II Pillar II 3. Basel II Pillar II Practice Study 4. Main Findings
More informationFigure 1: Status of Actions Recommended in November 2015 Committee Report
Chapter 3 Section 3.03 Financial Services Commission of Ontario Pension Plan and Financial Service Regulatory Oversight Standing Committee on Public Accounts Follow-Up on Section 3.03, 2014 Annual Report
More informationThe Dutch pension system: till 2011 the best in the world! Léon Zijlmans AAG. Third African Actuarial Congress
The Dutch pension system: till 2011 the best in the world! Léon Zijlmans AAG Third African Actuarial Congress Lomé (Togo), April 24-26, 2013 Agenda The Netherlands? Dutch pension provision: 3 pillars Focus
More informationTHE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION OF NEW MEXICO. INVESTMENT POLICY Revised December 14, 2017 NM PERA INVESTMENT POLICY
THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION OF NEW MEXICO INVESTMENT POLICY Revised December 14, 2017 NM PERA INVESTMENT POLICY TABLE OF CONTENTS I. INTRODUCTION... 1 A. Statutory Authority... 1 B. Authority
More informationCapital Adequacy and Supervisory Assessment of Solvency Position
Capital Adequacy and Supervisory Assessment of Solvency Position Jeffery Yong IAIS Secretariat Regional Seminar for Supervisors in Africa on Risk-based Solvency and Supervision, 14 September 2010 Agenda
More informationIOPS Toolkit for Risk-Based Pensions Supervision Chile
Risk-based Pensions Supervision provides a structured approach focusing on identifying potential risks faced by pension funds and assessing the financial and operational factors in place to mitigate those
More informationRisk Architecture: Agenda. Leon Bloom, Partner, Deloitte & Touche LLP
Risk Architecture: Alignment of Investor Objectives and Strategic and Business Objectives and Risk Appetite and Limits Leon Bloom, Partner, Deloitte & Touche LLP lebloom@deloitte.ca Agenda Alignment of
More informationESSENTIAL CRITERIA TO CONSIDER IN LONG-TERM CARE REFORM
ESSENTIAL CRITERIA TO CONSIDER IN LONG-TERM CARE REFORM LINDA CHOW, FSA, MAAA PRESENTER; MEMBER, LTC CRITERIA WORK GROUP CHRIS GIESE, FSA, MAAA PRESENTER; MEMBER, LTC CRITERIA WORK GROUP DAVID LINN MODERATOR;
More informationRetirement Plans Investment Policy
Retirement Plans Investment Policy Adopted July 26, 2004 Revision A., April 3, 2007 Revision B., February 1, 2011 Revision C., April 2, 2013 Revision D., March 3, 2015 Revision E., February 7, 2017 If
More informationBERMUDA MONETARY AUTHORITY THE INSURANCE CODE OF CONDUCT FEBRUARY 2010
Table of Contents 0. Introduction..2 1. Preliminary...3 2. Proportionality principle...3 3. Corporate governance...4 4. Risk management..9 5. Governance mechanism..17 6. Outsourcing...21 7. Market discipline
More informationOECD guidelines for pension fund governance
DIRECTORATE FOR FINANCIAL AND ENTERPRISE AFFAIRS OECD guidelines for pension fund governance RECOMMENDATION OF THE COUNCIL These guidelines, prepared by the OECD Insurance and Private Pensions Committee
More informationThe Danish DC Pensions - Beauties and Challenges
The Danish DC Pensions - Beauties and Challenges The Association of Chilean Pension Funds - AAFP Conference March 27 2018 Henning Hansen Diclaimer: All content and views in this presentation represent
More informationRisk Management Policy and Framework
Risk Management Policy and Framework Risk Management Policy Statement ALS recognises that the effective management of risks is a fundamental component of good corporate governance and is vital for the
More informationThe Basel Core Principles for Effective Banking Supervision & The Basel Capital Accords
The Basel Core Principles for Effective Banking Supervision & The Basel Capital Accords Basel Committee on Banking Supervision ( BCBS ) (www.bis.org: bcbs230 September 2012) Basel Committee on Banking
More informationActuary in Banking. 1st Seminar on Finance & Investment 18th May 2018
1st Seminar on Finance & Investment 18th May 2018 Actuary in Banking Mr. Raminder P S Bagri DGM, Canara Bank International Operations & CCR Wing Bangalore Actuary in Banking Unchartered Territory for Actuaries
More informationInternational Banking Standards and Recent Financial Reforms
International Banking Standards and Recent Financial Reforms Mark M. Spiegel Vice President International Research Federal Reserve Bank of San Francisco Prepared for conference on Capital Flows and Global
More informationNAIC OWN RISK AND SOLVENCY ASSESSMENT (ORSA) GUIDANCE MANUAL
NAIC OWN RISK AND SOLVENCY ASSESSMENT (ORSA) GUIDANCE MANUAL Created by the NAIC Group Solvency Issues Working Group Of the Solvency Modernization Initiatives (EX) Task Force 2011 National Association
More informationAssessing Credit Risk
Assessing Credit Risk Objectives Discuss the following: Inherent Risk Quality of Risk Management Residual or Composite Risk Risk Trend 2 Inherent Risk Define the risk Identify sources of risk Quantify
More informationRe: Basel Committee on Banking Supervision, Consultative Document Countercyclical capital buffer proposal, July 2010
Mark D. Linsz Corporate Treasurer September 10, 2010 VIA E-MAIL: baselcommittee@bis.org Basel Committee on Banking Supervision Bank for International Settlements Centralbahnplatz 2 CH-4002 Basel Switzerland
More informationGuidance paper on the use of internal models for risk and capital management purposes by insurers
Guidance paper on the use of internal models for risk and capital management purposes by insurers October 1, 2008 Stuart Wason Chair, IAA Solvency Sub-Committee Agenda Introduction Global need for guidance
More informationSOLVENCY & FINANCIAL CONDITION REPORT. SureStone Insurance dac
SOLVENCY & FINANCIAL CONDITION REPORT SureStone Insurance dac March 31 2017 TABLE OF CONTENTS SUMMARY 1 A BUSINESS AND PERFORMANCE 2 B SYSTEM OF GOVERNANCE 5 C RISK PROFILE 19 D VALUATION FOR SOLVENCY
More informationFinal Report of the Alberta and British Columbia Joint Expert Panel on Pension Standards. BC Pension Forum December 4, 2008
Final Report of the Alberta and British Columbia Joint Expert Panel on Pension Standards BC Pension Forum December 4, 2008 Scott Sweatman, Associate Counsel Blake, Cassels & Graydon LLP 595 Burrard Street,
More informationCollective Allowances - Sound Credit Risk Assessment and Valuation Practices for Financial Instruments at Amortized Cost
Guideline Subject: Collective Allowances - Sound Credit Risk Assessment and Valuation Practices for Category: Accounting No: C-5 Date: October 2001 Revised: July 2010 This guideline outlines the regulatory
More informationHigh-Level Seminar on Microinsurance Regulation for Supervisory Authorities. - Towards A Reform Agenda for Africa May 2012 Khartoum, Sudan
High-Level Seminar on Microinsurance Regulation for Supervisory Authorities - Towards A Reform Agenda for Africa 30-31 May 2012 Khartoum, Sudan 1 Regulatory Responses to Market Dynamics MICROINSURANCE
More informationGuidance on the Approval and Supervision of Special Purpose Vehicles under Solvency II
2018 Guidance on the Approval and Supervision of Special Purpose Vehicles under Solvency II 1 Contents 1 Introduction... 3 2. Guidance... 5 2.1 General expectations of the Central Bank in relation to SII
More informationTHE INTERNATIONAL ORGANISATION OF PENSION SUPERVISORS (IOPS)
THE INTERNATIONAL ORGANISATION OF PENSION SUPERVISORS (IOPS) REVISED PROGRAMME OF WORK 2015/2016 29 October 2015 Berlin, Germany 1 REVISED PROGRAMME OF WORK 2015/2016 I. On-going Projects 1. The following
More informationOutcomes and Risk-Based Supervision in Pensions: The Case of Costa Rica Álvaro Ramos Chaves
Outcomes and Risk-Based Supervision in Pensions: The Case of Costa Rica Álvaro Ramos Chaves Washington DC, September 2016 The Costa Rican Pension System Multi-pillar Pension System: First pillar is Social
More informationFIO recommendations on modernizing insurance regulation in the US
Insurance regulatory update FIO recommendations on modernizing insurance regulation in the US Time for the industry to act The Federal Insurance Office (FIO) has submitted to Congress its long-awaited
More informationGUIDANCE NOTE ASSET MANAGEMENT BY AUTHORIZED INSURERS
GN13 GUIDANCE NOTE ON ASSET MANAGEMENT BY AUTHORIZED INSURERS Office of the Commissioner of Insurance June 2004 GN13 Guidance Note on Asset Management By Authorized Insurers Table of Contents Page Preamble...
More informationThe Use of IT in Offsite Supervision
The Use of IT in Offsite Supervision Mehmet HÖBEK Section Chief Undersecretariat of Treasury OECD/IOPS Global Forum On Private Pensions, İstanbul 8 November 2006 Agenda Objectives of offsite supervision
More informationGUIDELINE ON ENTERPRISE RISK MANAGEMENT
GUIDELINE ON ENTERPRISE RISK MANAGEMENT Insurance Authority Table of Contents Page 1. Introduction 1 2. Application 2 3. Overview of Enterprise Risk Management (ERM) Framework and 4 General Requirements
More informationEnterprise Risk Management
Enterprise Risk Management Navigating the Enterprise Risk Management Landscape Alp E. Can Director of Enterprise Risk Management, FHLBank Atlanta North Carolina Bankers Association August 31, 2016 Building
More informationGUIDELINES FOR THE INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS FOR LICENSEES
SUPERVISORY AND REGULATORY GUIDELINES: 2016 Issued: 2 August 2016 GUIDELINES FOR THE INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS FOR LICENSEES 1. INTRODUCTION 1.1 The Central Bank of The Bahamas ( the
More informationRegulatory Capital Pillar 3 Disclosures
Regulatory Capital Pillar 3 Disclosures December 31, 2016 Table of Contents Background 1 Overview 1 Corporate Governance 1 Internal Capital Adequacy Assessment Process 2 Capital Demand 3 Capital Supply
More informationCanada s old-age pension system in an international perspective
CANADA S PENSION SYSTEM IN AN INTERNATIONAL PERSPECTIVE RETIREMENT INCOME AND MIDDLE-INCOME CANADIANS QUEEN S INTERNATIONAL INSTITUTE ON SOCIAL POLICY, 20 AUGUST 2014 Hervé Boulhol Senior Economist (Pensions
More informationEUROPEAN PARLIAMENT C5-0534/2002. Common position. Session document 2000/0260(COD) 19/11/2002
EUROPEAN PARLIAMENT 1999 Session document 2004 C5-0534/2002 2000/0260(COD) EN 19/11/2002 Common position with a view to the adoption of a Directive of the European Parliament and of the Council on the
More informationAPRA s risk assessment model. Maryanne Hinwood Head of PAIRS Australian Prudential Regulation Authority
APRA s risk assessment model Maryanne Hinwood Head of PAIRS Australian Prudential Regulation Authority 1 Outline APRA s risk assessment model Assessment of risk management/ ERM Use of external agency information
More informationSOLVENCY AND FINANCIAL CONDITION REPORT EUROLIFE LTD
SOLVENCY AND FINANCIAL CONDITION REPORT EUROLIFE LTD FOR THE YEAR ENDING 31 DECEMBER 2016 1 Table of Contents 1.Executive Summary... 5 1.1 Overview... 5 1.2 Business and performance... 5 1.3 System of
More informationFrom Products to Solution
From Products to Solution Best Practices for Institutional Asset Managers Helping You Make Smarter Business Decisions Webinar January 28, 2015 2015 Greenwich Associates, LLC. All rights reserved. No portion
More informationCorporate Governance Guideline
Office of the Superintendent of Financial Institutions Canada Bureau du surintendant des institutions financières Canada Corporate Governance Guideline January 2003 EFFECTIVE CORPORATE GOVERNANCE IN FEDERALLY
More informationPRISM Supervisory Commentary 2018
PRISM Supervisory Commentary 2018 March 2018 Page 2 PRISM Supervisory Commentary 2018 Central Bank of Ireland Table of Contents 1. Foreword... 3 2. Executive Summary... 4 3. Background... 8 4. Overview
More informationOwn Risk Solvency Assessment (ORSA) Linking Risk Management, Capital Management and Strategic Planning
Own Risk Solvency Assessment (ORSA) Linking Risk Management, Capital Management and Strategic Planning Moderator: David Holland, Risk Director, Ally Insurance SPEAKERS Mary-ellen Coggins, Managing Director,
More informationChristina Urias SMI Task Force Chair Director, Arizona Department of Insurance
May 21, 2010 TO: Christina Urias SMI Task Force Chair Director, Arizona Department of Insurance FROM: RE: Mary A. Weiss, Ph.D. Distinguished Scholar, CIPR NAIC Country Solvency Comparisons Materials for
More informationTHE REVIEW OF INTERNATIONAL FINANCIAL REGULATION: Implications for Housing Finance in Emerging Market Economies
THE REVIEW OF INTERNATIONAL FINANCIAL REGULATION: Implications for Housing Finance in Emerging Market Economies 4th Global Conference on Housing Finance in Emerging Markets Santiago Fernández de Lis Washington
More informationMunicipal Credit Research U.S. Local Government Methodology
Municipal Credit Research U.S. Local Government Methodology July 2012 2012 Morningstar, Inc. All rights reserved. Reproduction or transcription by any means, in whole or in part, without the prior written
More informationThe Goldman Sachs Group, Inc. PILLAR 3 DISCLOSURES
The Goldman Sachs Group, Inc. PILLAR 3 DISCLOSURES For the period ended June 30, 2015 TABLE OF CONTENTS Page No. Index of Tables 1 Introduction 2 Regulatory Capital 5 Capital Structure 6 Risk-Weighted
More informationDesjardins Trust Inc. Financial Information and Information on Risk Management (unaudited)
Desjardins Trust Inc. Financial Information and Information on Risk Management (unaudited) For the period ended September 30, 2017 TABLE OF CONTENTS Page Page Notes to readers Capital Use of this document
More informationINTERNATIONAL ASSOCIATION OF INSURANCE SUPERVISORS
INTERNATIONAL ASSOCIATION OF INSURANCE SUPERVISORS ISSUES PAPER ON GROUP-WIDE SOLVENCY ASSESSMENT AND SUPERVISION 5 MARCH 2009 This document was prepared jointly by the Solvency and Actuarial Issues Subcommittee
More informationDelivering Optimised Insurance Investment Strategies
Delivering Optimised Insurance Investment Strategies Scott Robertson FFA, Phoenix Group Craig Turnbull FIA, Standard Life Investments 7 th June 2017 Background: Global long-term interest rates 09 June
More informationAN APPROACH TO RISK-BASED MARKET CONDUCT REGULATION
CCIR Canadian Council of Insurance Regulators AN APPROACH TO RISK-BASED MARKET CONDUCT REGULATION Conseil canadien des responsables de la réglementation d assurance A report prepared by the Canadian Council
More informationCurrent Issues in Liquidity Risk
Current Issues in Liquidity Risk Leonard Matz May, 2009 sitemap www.sungard.com Copyright Notice Large portions of this presentation are copyrighted by my publishers, John Wiley and Sons and Sheshunoff
More informationBasel Committee proposals for Strengthening the resilience of the banking sector
Banking and Capital Markets Basel Committee proposals for Strengthening the resilience of the banking sector New rules or new game? 2 PricewaterhouseCoopers On 17 December, the Basel Committee on Banking
More informationGuide to Intervention
Guide to Intervention MARCH 2014 BC LIFE INSURERS www.fic.gov.bc.ca PURPOSE The Guide to Intervention 1 (guide) sets out the supervisory actions that the Financial Institutions Commission 2 (FICOM) may
More informationThe IORP Directive and market consistency issues. On Consistency, Comprehension and Conciliation
The IORP Directive and market consistency issues On Consistency, Comprehension and Conciliation Falco Valkenburg Lisbon, 23 March 2015 1 Actuarial Association of Europe Established in 1978 by 12 national
More information