OECD launched on 20 July 2015 a public consultation on the draft Core Principles of private Pension Regulation.
The draft updates the 2004 Recommendation of the Council on Core Principles of Occupational Pension Regulation in order to increase their relevance given the current regulatory framework as well as facilitating the application of the Core Principles to different types of private pension plans (especially personal and defined contribution plans). The document harmonises the Principles with other OECD legal instruments and policy guidance and aims to provide an operative guidance on how to implement private pension provision effectively and efficiently.
The general Core Principles taken into account are:
- Conditions for effective regulation
- Establishment of pension plans, pension funds, and pension entities
- Investment and risk management
- Plan design, pension benefits, disclosure, and redress
Four more Core Principles are considered specifically for Occupational Plans and Personal Pension Plans.
Each of the Core Principles consists of a main recommendation and a set of Implementing Guidelines such as legal provisions for the establishing, investment policy, capital requirements and business plan.
Comments can be submitted until 20 October, following the OECD instructions.