Mauritius’ Financial Services Commission hosts training for Pension Supervisors
According to Clairette 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. (Image: AfricaMoney)
Mauritius’ Financial Services Commission (FSC) in collaboration with the Toronto Centre, is hosting a five day regional training programme on ‘Developing Practical Approaches to Risk-Based Supervision’ for Pension Supervisors at the FSC House in Ebène which ends today, November 14, 2014.
Some 40 participants from the FSC Mauritius, as well as representatives of Ministries and pension supervisory bodies of eight African countries, together with 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 this programme are 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, Clairette Ah-Hen, emphasised the role of the pensions industry in providing a stable consumer savings vehicle.
She also spoke on capital investment from pension funds which she said has become increasingly important in today’s evolving business environment.
According to Clairette 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 cater to 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 (OECD).
It may be noted that the 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, has laid down a Principle on Risk Orientation, where this Risk Orientation Principle stipulates that pension supervision should seek to mitigate the greatest potential risks to the pension system.