The Commission for the Supervision of Pension Funds was set up in February to oversee the administration and management of the pension schemes. It is based in Rome.

Under the terms of the 1995 pensions law its role is to authorise funds to operate, to approve their statutes and rules, keeping a record of authorised funds and issuing any directives to make the sector run smoothly. An example is the approval of draft contracts between pension funds and their investment managers.The commission can also set standards about the information funds will provide to members to ensure clarity, thoroughness and transparency in the information provided".

Another role is to supervise the technical and financial mangement of the funds, including the investments and the accountancy aspects. In particular, it will ensure that the criteria for assessing risk and the allocation of portfolios are observed.

The commission also has a role in advising government, consulting with the authotities and making proposals on behalf of the sector. Another resposibility is to suggest how pensions legislation could need changing. It is also charged with collection of information and data about the pensions industry and making available information to ensure the sector is kept fully informed.

The structure of the commission is aimed to be streamlined with around 30 permanent staff, though up to now it has been borrowing staff from other parts of the administration. But in law passed in December last, it was allowed to increase its numbers to cover a temporary need.

Its powers can be exercised over the new open and closed funds, as well as over existing funds. These include the ability to inspect funds to ensure they are being run correctly from a technical, financial and investment viewpoint, with powers to inspect scheme documents.

Up to now, the commission's aim has been to get the sector up and running, by providing a useful set of general directions to help funds get established and obtain the go-ahead. The commission says its next step is to concentrate on technical issues to ensure good fund management.

The president of the commission is Professor Mario Bissoni and the director general is Gennaro Cimmino."

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