Risk-Based Supervision of Pension Funds in Australia

Thompson, Graeme

World Bank, Washington, DC

关键词: ACCOUNTING;    ACTUARIAL REPORTS;    ACTUARIES;    ADVERSE CONSEQUENCES;    ANNUAL RETURN;   

DOI  :  10.1596/1813-9450-4539
RP-ID  :  WPS4539

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper examines the development ofrisk-based supervision of pension funds in Australia.Thelarge number of pension funds has meant that since theinception of pension fund supervision in the early1990's the regulator has sought to identify high riskfunds and focus its attention on these funds.However, theregulator developed a more sophisticated risk-rating model,known as PAIRS/SOARS, in 1992 in order to apply a moredisciplined and consistent ratings methodology.Fourreasons are given for the move towards more sophisticatedrisk-based supervision: 1) creation of an integratedsupervisor which allowed the use of techniques used inbanking and insurance to be adopted for pension fund; 2) theneed to better use available supervisory resources; 3)several pension fund failures; and 4) concerns aboutindustry weaknesses.Supervisory techniques usedparticularly in the banking industry, such as universallicensing, 'fit and proper' assessment, and riskmanagement requirements were adopted for the pension sectorbetween 2004 and 2006.The paper provides an outline of thePAIRS/SOARS risk-rating model which was also adopted.Itobserves that the approach provides an analytical disciplineto risk assessment, strengthens the link between riskassessment and supervisory response, and allows bettertargeting of supervisory resources.