12 November 2014

FSC Mauritius hosts training programme for Pension Supervisors

The Financial Services Commission (FSC), Mauritius in collaboration with the Toronto Centre, is hosting from 10 to 14 November 2014, a regional training programme on Developing Practical Approaches to Risk-Based Supervision for Pension Supervisors at the FSC House in Ebène.

Some 40 participants from the FSC Mauritius, as well as, representatives of Ministries and pension supervisory bodies of eight African countries, India and Papua New Guinea are attending the training programme to share expertise, ideas, practices and experiences relating to a risk focused approach to pension supervision.

The objectives of the five-day programme is to enable participants to better understand the importance of early intervention and how this can lead to a stronger supervisory authority, enhanced public confidence, and greater financial stability as well as defining the importance of risk-based supervision as an effective and necessary tool for supervisors.

In her opening address, the Chief Executive of the FSC, Ms. Clairette Ah-Hen, emphasised the role of the pensions industry in providing a stable consumer savings vehicle. She also spoke on the investment of capital from pension funds which she said has become increasingly important in today’s evolving business environment. 

According to Ms Ah-Hen, pension funds are one of the biggest institutional investments world-wide and are seen as important features in the quest for future economic growth and development. Those who have worked hard and saved for their future retirement in these pension funds must have confidence in the regulatory systems and trust that their interests are being protected, she added.

The local Private Pensions Industry consists of private occupational pension schemes which capture around 90,000 estimated members in insured pension schemes administered by insurance companies and self-administered superannuation funds. For further development of the sector, the Private Pension Schemes Act 2012 (PPSA) was enacted and became effective on 1 November 2012. The PPSA provides a single regulatory framework for the operation of private pensions in Mauritius in line with the standards of the international organisations like the International Organisation of Pension Supervisors (IOPS) and the Organisation for Economic Co-operation and Development.

It will be recalled that FSC Mauritius has been entrusted with the responsibility of supervising pension funds and of the institutions that provide pension products and services to ensure the protection of consumers. Pension supervision is required to achieve the degree of protection needed to support privately managed savings and is a means to help pensions adapt to market risks. The IOPS, of which the FSC Mauritius is a Governing Member, lay down a Principle on Risk Orientation.  This Risk Orientation Principle stipulates that pension supervision should seek to mitigate the greatest potential risks to the pension system.

No comments: