08 July 2009

OECD calls for better pensions governance

The report provides guidelines and regulatory principles from which it believes all pensions regimes should base their pension fund governance, to deliver “stronger regulation and better governance

Within any pension structure, there must be “clear identification and separation of operational and oversight responsibilities in the governance” said the OECD, which stated that the required core criteria are:

• Identification of responsibilities
• Management of a governing body
• Accountability
• Suitability of membership
• Handling of delegation and expert advice
• Appointment of an auditor
• Appointment of an actuary
• Appointment of a custodian
• Risk-based internal controls
• Reporting
• Disclosure

© OECD