OECD-IOPS Guidelines on the Licensing of Pension Entities


The OECD and the International Organisation of Pension Supervisors (IOPS) held a public consultation until 5 October 2007 to seek the views of stakeholders in private pension systems on the draft text of the Guidelines on the Licensing of Pension Entities, developed jointly by the OECD and the IOPS. Comments were received from many areas of expertise and were taken into account in the drafting of the final version of the Guidelines. The Guidelines were approved by IOPS members at the Annual General Meeting, held in Beijing in November 2007, and also by the OECD Working Party on Private Pensions.  The Guidelines have been transmitted to the OECD Council for approval.

The draft OECD-IOPS Guidelines provide a framework for licensing regulations and the assessment of licensing applications from pension entities to determine whether or not they stand up to certain criteria: adequate governance structures, management in the best interest of plan members and other beneficiaries, financial security and performance of pension entities and maximimum operational efficiency. The Guidelines set requirements relating to starting capital, funding policy, risk management mechanisms, governance structure, and investment policy. They outline the circumstances in which a licence to operate may be withdrawn. The Guidelines also list the powers that licensing authorities should have at their disposal when assessing licence applications.

The draft OECD-IOPS Guidelines are the first such standard at the international level on pension licensing regulations and licensing powers of pension supervisory authorities. They reflect the views of the OECD and the IOPS. The IOPS is an independent international body representing over 60 jurisdictions involved in the supervision of private pension arrangements. The OECD body that developed the guidelines, the Insurance and Private Pensions Committee Working Party on Private Pensions, brings together delegates from 30 OECD member countries and six other countries (Brazil, Chile, Estonia, Israel, Russian Federation, South Africa) as well as several international organisations with observer status.

The draft Guidelines are primarily addressed to regulators and supervisory authorities involved in setting licensing requirements for pension entities as well as those authorities actually involved in the process of licensing pension entities.


DRAFT TEXT: Download the draft text of the Guidelines on the Licensing of Pension Entities in pdf file format. A comparative report, summarising the licensing approaches in over 30 OECD and IOPS, provides background information to the draft Guidelines.

POSTING COMMENTS: Comments are posted on the OECD website of the Working Party on Private Pensions (www.oecd.org/daf/pensions).


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