OECD releases new governance guidelines
GLOBAL - The Organisation for Economic Co-operation and Development (OECD) has released details of its pension fund governance guidelines for public comment.
The previously published draft guidelines are designed to help pensions regulators and supervisory authorities to improve pension fund governance.
These guidelines were first issued in 2005, though IPE learnt in October 2007 the organisation was to revise the report in an effort to strengthen the requirements of good governance and to raise public confidence in private pension systems.
The OECD told IPE at the time there is a need to strengthen the existing guidelines to further raise governance standards, while introducing further provisions related to the governance of defined contribution schemes. (See earlier IPE story: ‘OECD to revise governance guidelines')
Other new issues include the demand for greater expertise among board members and risk-based governance structures and mechanisms.
Another new issue covered by the revised directive, the need for more balanced representation on pension fund boards, comes as unions in countries such as the UK and the Netherlands are stepping up their efforts to get more pensioners on pension fund boards.
Earlier this month, Dutch MPs tabled an amendment of the Pension Act giving pensioners of industry-wide schemes an equal say on the board, like their fellow pensioners of company pension funds. (See earlier IPE story: ‘Allow pensioners on all schemes' boards - MPs')
The deadline for comments is October 1, the OECD revealed late on Friday.
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