IMF paper: Governance Practices at Financial Regulatory and Supervisory Agencies

The IMF recently published a survey on Governance Practices at Financial Regulatory and Supervisory Agencies, which would be of interest to IOPS members.

Respondents to the survey included unitary agencies (single element of financial sector), integrated (combination of elements), and fully consolidated agencies.

The survey results are summarised below:

Specific findings for Insurance Supervisors:

• Most insurance supervisors did not consider monitoring systemic risks and maintaining financial stability as mandates.
• Insurance supervisors appear to be less independent than other types of supervisors.
  • 44% of insurance-only supervisors have industry representatives on their governing body (much higher than other agencies).
  • Less than half of insurance supervisors have the ability to set salary levels for their staff.
  • More dependent on fees for funding than most other supervisory types.

General Findings:

• Legal protection for supervisors does not continue after they leave office. this can act as a deterrent to supervisors exercising supervisory powers.

Download the full paper here.