Risk-Based Supervision of Pension Funds : A Review of International Experience and Preliminary Assessment of the First Outcomes
This paper provides a review of the design and experience of risk-based pension fund supervision in several countries that have been leaders in the development of these methods. The utilization of risk-based methods originates primarily in the supe...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/01/8968875/risk-based-supervision-pension-funds-review-international-experience-preliminary-assessment-first-outcomes http://hdl.handle.net/10986/6474 |
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okr-10986-6474 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ACCOUNTING STANDARDS ACCURATE INFORMATION ADVERSE PRICE MOVEMENTS ASSESSMENT OF RISK ASSET ALLOCATION ASSET BASE ASSET CLASS ASSET CLASSES ASSET LIABILITY MATCHING ASSET PRICES ASSET-LIABILITY MANAGEMENT ASSET-LIABILITY MISMATCHES BALANCE SHEET BALANCE SHEETS BANKING SYSTEM BASIS POINT BENEFICIARIES BOND BOND PORTFOLIO BUSINESS PLAN CALCULATION CALL OPTIONS CAPITAL ADEQUACY CAPITAL ALLOCATION CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CENTRAL BANK CONTRIBUTION CONTRIBUTION ARRANGEMENTS CONTRIBUTION SYSTEM CONTRIBUTIONS CORPORATE BONDS CORPORATE GOVERNANCE CREDIT RISK CREDIT RISKS CREDIT STANDING CRISIS MANAGEMENT CURRENCY DEFERRED COMPENSATION DEPOSITS DERIVATIVES DISCLOSURE REQUIREMENTS DISCOUNT RATE DIVERSIFICATION DOMESTIC BONDS DOMESTIC EQUITIES DOMESTIC EQUITY EFFICIENT INVESTMENT EQUITIES EQUITY INVESTMENTS EQUITY MARKET EQUITY RETURNS EURO MARKET FAIR VALUATION FINANCIAL CRISIS FINANCIAL INDUSTRY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIARIES FINANCIAL POLICY FINANCIAL POSITION FINANCIAL RISK FINANCIAL RISKS FINANCIAL SECTOR FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL SYSTEMS FIXED INCOME FIXED INCOME INVESTMENTS FIXED INCOME PORTFOLIO FIXED INCOME PORTFOLIOS FOREIGN CURRENCY FOREIGN EQUITIES FOREIGN EQUITY FUND MANAGERS FUND PERFORMANCE GOVERNMENT BONDS GOVERNMENT SECURITIES HOLDINGS INCOME INSTRUMENTS INDIVIDUAL ACCOUNTS INFORMATION SYSTEMS INFORMED DECISIONS INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INSURANCE INDUSTRY INTEREST RATE INTEREST RATE RISK INTEREST RATE RISKS INTEREST RATE SWAPS INTEREST RATES INTERNAL AUDITS INTERNATIONAL BANK INVESTING INVESTMENT PATTERNS INVESTMENT POLICIES INVESTMENT REGIME INVESTMENT RISK INVESTMENT STRATEGIES LABOR FORCE LEGAL OBLIGATION LIABILITY LIFE INSURANCE LIFE INSURANCE COMPANIES LIQUID ASSETS LIQUIDITY LONG-TERM INTEREST LONG-TERM INTEREST RATE MARGIN REQUIREMENTS MARKET ANALYSIS MARKET ANALYSTS MARKET COMPETITION MARKET CONDITIONS MARKET DEVELOPMENT MARKET DEVELOPMENTS MARKET DISCIPLINE MARKET LIQUIDITY MARKET PARTICIPANTS MARKET RISK MARKET VALUE MARKET VALUES MARKET YIELD MATURITY MINIMUM CAPITAL REQUIREMENT MINIMUM CAPITAL REQUIREMENTS MORTGAGE MORTGAGE BONDS MORTGAGE LOANS MORTGAGES OCCUPATIONAL FUNDS OLDER WORKERS OTHER ASSETS PARENT COMPANIES PENSION PENSION COMPANIES PENSION FUND PENSION FUND SUPERVISION PENSION FUNDS PENSION PLAN PENSION PROVIDERS PENSION SCHEMES PENSION SYSTEM PENSION SYSTEMS PENSIONERS PENSIONS PERFORMANCE MEASUREMENT PORTFOLIO PORTFOLIOS PRIVATE LOANS PRIVATE PENSION PRIVATE PENSION FUNDS PRIVATE PENSION PLANS PROBABILITY PUBLIC DEBT PUBLIC DEBT STOCK PUBLIC SECTOR BONDS RATE OF RETURN RATE OF RETURNS RATES OF RETURN REAL ESTATE REGULATORY AUTHORITY REGULATORY FRAMEWORK REGULATORY STANDARDS RESPONSIBILITIES RETIREMENT RETIREMENT BENEFITS RETIREMENT INCOME RETIREMENT SAVINGS RETURN RISK ASSESSMENT RISK ASSESSMENT PROCESS RISK CAPITAL RISK CONTROL RISK CONTROLS RISK EXPOSURE RISK EXPOSURES RISK FACTOR RISK FACTORS RISK MANAGEMENT RISK MANAGEMENT STRATEGIES RISK MANAGEMENT SYSTEM RISK MANAGEMENT SYSTEMS RISK PROFILE RISK SCORE RISK SCORES SENIOR SMALLER FUNDS SOCIAL INSURANCE SOCIAL INSURANCE SYSTEMS SOLVENCY STAKEHOLDERS SUPERVISION OF BANKS SUPERVISION OF PENSION FUNDS SUPERVISORY AGENCIES SUPERVISORY AGENCY SUPERVISORY AUTHORITY SWAP SWAP CURVE TAX TAX LAWS TRADITIONAL FINANCIAL INSTITUTIONS TRANSPARENCY TRUSTEE TRUSTEES USE OF DERIVATIVES VALUATION VARIABLE RATE WITHDRAWAL YIELD CURVE |
| spellingShingle |
ACCOUNTING ACCOUNTING STANDARDS ACCURATE INFORMATION ADVERSE PRICE MOVEMENTS ASSESSMENT OF RISK ASSET ALLOCATION ASSET BASE ASSET CLASS ASSET CLASSES ASSET LIABILITY MATCHING ASSET PRICES ASSET-LIABILITY MANAGEMENT ASSET-LIABILITY MISMATCHES BALANCE SHEET BALANCE SHEETS BANKING SYSTEM BASIS POINT BENEFICIARIES BOND BOND PORTFOLIO BUSINESS PLAN CALCULATION CALL OPTIONS CAPITAL ADEQUACY CAPITAL ALLOCATION CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CENTRAL BANK CONTRIBUTION CONTRIBUTION ARRANGEMENTS CONTRIBUTION SYSTEM CONTRIBUTIONS CORPORATE BONDS CORPORATE GOVERNANCE CREDIT RISK CREDIT RISKS CREDIT STANDING CRISIS MANAGEMENT CURRENCY DEFERRED COMPENSATION DEPOSITS DERIVATIVES DISCLOSURE REQUIREMENTS DISCOUNT RATE DIVERSIFICATION DOMESTIC BONDS DOMESTIC EQUITIES DOMESTIC EQUITY EFFICIENT INVESTMENT EQUITIES EQUITY INVESTMENTS EQUITY MARKET EQUITY RETURNS EURO MARKET FAIR VALUATION FINANCIAL CRISIS FINANCIAL INDUSTRY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIARIES FINANCIAL POLICY FINANCIAL POSITION FINANCIAL RISK FINANCIAL RISKS FINANCIAL SECTOR FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL SYSTEMS FIXED INCOME FIXED INCOME INVESTMENTS FIXED INCOME PORTFOLIO FIXED INCOME PORTFOLIOS FOREIGN CURRENCY FOREIGN EQUITIES FOREIGN EQUITY FUND MANAGERS FUND PERFORMANCE GOVERNMENT BONDS GOVERNMENT SECURITIES HOLDINGS INCOME INSTRUMENTS INDIVIDUAL ACCOUNTS INFORMATION SYSTEMS INFORMED DECISIONS INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INSURANCE INDUSTRY INTEREST RATE INTEREST RATE RISK INTEREST RATE RISKS INTEREST RATE SWAPS INTEREST RATES INTERNAL AUDITS INTERNATIONAL BANK INVESTING INVESTMENT PATTERNS INVESTMENT POLICIES INVESTMENT REGIME INVESTMENT RISK INVESTMENT STRATEGIES LABOR FORCE LEGAL OBLIGATION LIABILITY LIFE INSURANCE LIFE INSURANCE COMPANIES LIQUID ASSETS LIQUIDITY LONG-TERM INTEREST LONG-TERM INTEREST RATE MARGIN REQUIREMENTS MARKET ANALYSIS MARKET ANALYSTS MARKET COMPETITION MARKET CONDITIONS MARKET DEVELOPMENT MARKET DEVELOPMENTS MARKET DISCIPLINE MARKET LIQUIDITY MARKET PARTICIPANTS MARKET RISK MARKET VALUE MARKET VALUES MARKET YIELD MATURITY MINIMUM CAPITAL REQUIREMENT MINIMUM CAPITAL REQUIREMENTS MORTGAGE MORTGAGE BONDS MORTGAGE LOANS MORTGAGES OCCUPATIONAL FUNDS OLDER WORKERS OTHER ASSETS PARENT COMPANIES PENSION PENSION COMPANIES PENSION FUND PENSION FUND SUPERVISION PENSION FUNDS PENSION PLAN PENSION PROVIDERS PENSION SCHEMES PENSION SYSTEM PENSION SYSTEMS PENSIONERS PENSIONS PERFORMANCE MEASUREMENT PORTFOLIO PORTFOLIOS PRIVATE LOANS PRIVATE PENSION PRIVATE PENSION FUNDS PRIVATE PENSION PLANS PROBABILITY PUBLIC DEBT PUBLIC DEBT STOCK PUBLIC SECTOR BONDS RATE OF RETURN RATE OF RETURNS RATES OF RETURN REAL ESTATE REGULATORY AUTHORITY REGULATORY FRAMEWORK REGULATORY STANDARDS RESPONSIBILITIES RETIREMENT RETIREMENT BENEFITS RETIREMENT INCOME RETIREMENT SAVINGS RETURN RISK ASSESSMENT RISK ASSESSMENT PROCESS RISK CAPITAL RISK CONTROL RISK CONTROLS RISK EXPOSURE RISK EXPOSURES RISK FACTOR RISK FACTORS RISK MANAGEMENT RISK MANAGEMENT STRATEGIES RISK MANAGEMENT SYSTEM RISK MANAGEMENT SYSTEMS RISK PROFILE RISK SCORE RISK SCORES SENIOR SMALLER FUNDS SOCIAL INSURANCE SOCIAL INSURANCE SYSTEMS SOLVENCY STAKEHOLDERS SUPERVISION OF BANKS SUPERVISION OF PENSION FUNDS SUPERVISORY AGENCIES SUPERVISORY AGENCY SUPERVISORY AUTHORITY SWAP SWAP CURVE TAX TAX LAWS TRADITIONAL FINANCIAL INSTITUTIONS TRANSPARENCY TRUSTEE TRUSTEES USE OF DERIVATIVES VALUATION VARIABLE RATE WITHDRAWAL YIELD CURVE Brunner, Gregory Hinz, Richard Rocha, Roberto Risk-Based Supervision of Pension Funds : A Review of International Experience and Preliminary Assessment of the First Outcomes |
| geographic_facet |
East Asia and Pacific Europe and Central Asia Latin America & Caribbean |
| relation |
Policy Research Working Paper; No. 4491 |
| description |
This paper provides a review of the
design and experience of risk-based pension fund supervision
in several countries that have been leaders in the
development of these methods. The utilization of risk-based
methods originates primarily in the supervision of banks.
In recent years it has increasingly been extended to other
types of financial intermediaries including pension funds
and insurers. The trend toward risk-based supervision of
pensions is closely associated with movement toward the
integration of pension supervision with that of banking and
other financial services into a single national authority.
Although similar in concept to the techniques developed in
banking, the application to pension funds has required
modifications, particularly for defined contribution funds
that transfer investment risk to fund members. The
countries examined provide a range of experiences that
illustrate both the diversity of pension systems and
approaches to risk-based supervision, but also a commonality
of the focus on sound risk management and effective
supervisory outcomes. The paper provides a description of
pension supervision in Australia, Denmark, Mexico and the
Netherlands, and an initial evaluation of the results
achieved in relation to the underlying objectives. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Brunner, Gregory Hinz, Richard Rocha, Roberto |
| author_facet |
Brunner, Gregory Hinz, Richard Rocha, Roberto |
| author_sort |
Brunner, Gregory |
| title |
Risk-Based Supervision of Pension Funds : A Review of International Experience and Preliminary Assessment of the First Outcomes |
| title_short |
Risk-Based Supervision of Pension Funds : A Review of International Experience and Preliminary Assessment of the First Outcomes |
| title_full |
Risk-Based Supervision of Pension Funds : A Review of International Experience and Preliminary Assessment of the First Outcomes |
| title_fullStr |
Risk-Based Supervision of Pension Funds : A Review of International Experience and Preliminary Assessment of the First Outcomes |
| title_full_unstemmed |
Risk-Based Supervision of Pension Funds : A Review of International Experience and Preliminary Assessment of the First Outcomes |
| title_sort |
risk-based supervision of pension funds : a review of international experience and preliminary assessment of the first outcomes |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/01/8968875/risk-based-supervision-pension-funds-review-international-experience-preliminary-assessment-first-outcomes http://hdl.handle.net/10986/6474 |
| _version_ |
1764400372911177728 |
| spelling |
okr-10986-64742021-04-23T14:02:31Z Risk-Based Supervision of Pension Funds : A Review of International Experience and Preliminary Assessment of the First Outcomes Brunner, Gregory Hinz, Richard Rocha, Roberto ACCOUNTING ACCOUNTING STANDARDS ACCURATE INFORMATION ADVERSE PRICE MOVEMENTS ASSESSMENT OF RISK ASSET ALLOCATION ASSET BASE ASSET CLASS ASSET CLASSES ASSET LIABILITY MATCHING ASSET PRICES ASSET-LIABILITY MANAGEMENT ASSET-LIABILITY MISMATCHES BALANCE SHEET BALANCE SHEETS BANKING SYSTEM BASIS POINT BENEFICIARIES BOND BOND PORTFOLIO BUSINESS PLAN CALCULATION CALL OPTIONS CAPITAL ADEQUACY CAPITAL ALLOCATION CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CENTRAL BANK CONTRIBUTION CONTRIBUTION ARRANGEMENTS CONTRIBUTION SYSTEM CONTRIBUTIONS CORPORATE BONDS CORPORATE GOVERNANCE CREDIT RISK CREDIT RISKS CREDIT STANDING CRISIS MANAGEMENT CURRENCY DEFERRED COMPENSATION DEPOSITS DERIVATIVES DISCLOSURE REQUIREMENTS DISCOUNT RATE DIVERSIFICATION DOMESTIC BONDS DOMESTIC EQUITIES DOMESTIC EQUITY EFFICIENT INVESTMENT EQUITIES EQUITY INVESTMENTS EQUITY MARKET EQUITY RETURNS EURO MARKET FAIR VALUATION FINANCIAL CRISIS FINANCIAL INDUSTRY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIARIES FINANCIAL POLICY FINANCIAL POSITION FINANCIAL RISK FINANCIAL RISKS FINANCIAL SECTOR FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL SYSTEMS FIXED INCOME FIXED INCOME INVESTMENTS FIXED INCOME PORTFOLIO FIXED INCOME PORTFOLIOS FOREIGN CURRENCY FOREIGN EQUITIES FOREIGN EQUITY FUND MANAGERS FUND PERFORMANCE GOVERNMENT BONDS GOVERNMENT SECURITIES HOLDINGS INCOME INSTRUMENTS INDIVIDUAL ACCOUNTS INFORMATION SYSTEMS INFORMED DECISIONS INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INSURANCE INDUSTRY INTEREST RATE INTEREST RATE RISK INTEREST RATE RISKS INTEREST RATE SWAPS INTEREST RATES INTERNAL AUDITS INTERNATIONAL BANK INVESTING INVESTMENT PATTERNS INVESTMENT POLICIES INVESTMENT REGIME INVESTMENT RISK INVESTMENT STRATEGIES LABOR FORCE LEGAL OBLIGATION LIABILITY LIFE INSURANCE LIFE INSURANCE COMPANIES LIQUID ASSETS LIQUIDITY LONG-TERM INTEREST LONG-TERM INTEREST RATE MARGIN REQUIREMENTS MARKET ANALYSIS MARKET ANALYSTS MARKET COMPETITION MARKET CONDITIONS MARKET DEVELOPMENT MARKET DEVELOPMENTS MARKET DISCIPLINE MARKET LIQUIDITY MARKET PARTICIPANTS MARKET RISK MARKET VALUE MARKET VALUES MARKET YIELD MATURITY MINIMUM CAPITAL REQUIREMENT MINIMUM CAPITAL REQUIREMENTS MORTGAGE MORTGAGE BONDS MORTGAGE LOANS MORTGAGES OCCUPATIONAL FUNDS OLDER WORKERS OTHER ASSETS PARENT COMPANIES PENSION PENSION COMPANIES PENSION FUND PENSION FUND SUPERVISION PENSION FUNDS PENSION PLAN PENSION PROVIDERS PENSION SCHEMES PENSION SYSTEM PENSION SYSTEMS PENSIONERS PENSIONS PERFORMANCE MEASUREMENT PORTFOLIO PORTFOLIOS PRIVATE LOANS PRIVATE PENSION PRIVATE PENSION FUNDS PRIVATE PENSION PLANS PROBABILITY PUBLIC DEBT PUBLIC DEBT STOCK PUBLIC SECTOR BONDS RATE OF RETURN RATE OF RETURNS RATES OF RETURN REAL ESTATE REGULATORY AUTHORITY REGULATORY FRAMEWORK REGULATORY STANDARDS RESPONSIBILITIES RETIREMENT RETIREMENT BENEFITS RETIREMENT INCOME RETIREMENT SAVINGS RETURN RISK ASSESSMENT RISK ASSESSMENT PROCESS RISK CAPITAL RISK CONTROL RISK CONTROLS RISK EXPOSURE RISK EXPOSURES RISK FACTOR RISK FACTORS RISK MANAGEMENT RISK MANAGEMENT STRATEGIES RISK MANAGEMENT SYSTEM RISK MANAGEMENT SYSTEMS RISK PROFILE RISK SCORE RISK SCORES SENIOR SMALLER FUNDS SOCIAL INSURANCE SOCIAL INSURANCE SYSTEMS SOLVENCY STAKEHOLDERS SUPERVISION OF BANKS SUPERVISION OF PENSION FUNDS SUPERVISORY AGENCIES SUPERVISORY AGENCY SUPERVISORY AUTHORITY SWAP SWAP CURVE TAX TAX LAWS TRADITIONAL FINANCIAL INSTITUTIONS TRANSPARENCY TRUSTEE TRUSTEES USE OF DERIVATIVES VALUATION VARIABLE RATE WITHDRAWAL YIELD CURVE This paper provides a review of the design and experience of risk-based pension fund supervision in several countries that have been leaders in the development of these methods. The utilization of risk-based methods originates primarily in the supervision of banks. In recent years it has increasingly been extended to other types of financial intermediaries including pension funds and insurers. The trend toward risk-based supervision of pensions is closely associated with movement toward the integration of pension supervision with that of banking and other financial services into a single national authority. Although similar in concept to the techniques developed in banking, the application to pension funds has required modifications, particularly for defined contribution funds that transfer investment risk to fund members. The countries examined provide a range of experiences that illustrate both the diversity of pension systems and approaches to risk-based supervision, but also a commonality of the focus on sound risk management and effective supervisory outcomes. The paper provides a description of pension supervision in Australia, Denmark, Mexico and the Netherlands, and an initial evaluation of the results achieved in relation to the underlying objectives. 2012-05-25T20:46:31Z 2012-05-25T20:46:31Z 2008-01 http://documents.worldbank.org/curated/en/2008/01/8968875/risk-based-supervision-pension-funds-review-international-experience-preliminary-assessment-first-outcomes http://hdl.handle.net/10986/6474 English Policy Research Working Paper; No. 4491 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Europe and Central Asia Latin America & Caribbean |