NAPF AllRussia Conference Monday, 24th October, 2005: National Hotel, Moscow

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NAPF All-Russia ConferenceMonday, 24th
October, 2005 National Hotel, Moscow
Problems in Non-state Pension Fund Activities,
their Role in the Modern Pension System of the
Russian Federation and their Development
ProspectsDavid Callund Callund Consulting
Limited
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THREE TOPICS FOR TODAY

• Supervision and Regulation
• Development of Standards
• A Pension Protection Mechanism
• (or Pension Guarantee Fund)

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SUPERVISION AND REGULATION

• Federal Service for Financial Markets
• NAPF, as a Self-Regulatory Organisation

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SUPERVISION AND REGULATION

• The Federal Service for Financial Markets
• Ministry of Health and Social Protection
• Technical capacity and skills
• Functions
• Legal Powers
• Financing

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SUPERVISION AND REGULATION

• Self-Regulatory Organisations under the Law
• NAPF as a Self-Regulatory Organisation
• An internal division of NAPF to undertake
• Review of constitutional documents and rules
• Review of technical reports
• Inspections
• New Non-state Pension Funds
• Financing of self-regulation

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SUPERVISION AND REGULATION

• Mutual collaboration between
• Federal Service on Financial Markets
• and
• National Association of Non-state Pension Funds

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SUPERVISION AND REGULATION

• Staff requirements and operational costs of
  self-regulation

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DEVELOPMENT OF STANDARDS BASIC QUESTIONS

• The NAPF Charter says the NAPF will introduce
  standards. What Standards?
• Do these influence self-regulation?
• What limitations should apply to self
  regulation?
• Should these be identified in the Charter of
  the NAPF

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DEVELOPMENT OF STANDARDS

• Standards are not laws.
• Could standards be given in an Annex to the
  Charter?
• - Availability of documents to members
• - Data-collection and data-recording
• - Data-security
• - Reporting disciplines
• - Actuarial reports
• - Audit reports

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DEVELOPMENT OF STANDARDS

• Supervision of Standards
• Staff skills
• Staff training

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A PENSION PROTECTION MECHANISM

• Experience in other countries.
• Different forms (funded and non-funded).
• Moral hazards.

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A PENSION PROTECTION MECHANISM

• Do NPFs think it is beneficial?
• Is it needed?
• For whose benefit would it exist?
• Should those beneficiaries pay for it?
• If not who should pay?

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A PENSION PROTECTION MECHANISM

• Should it apply to all pension liabilities?
• - mandatory funded component of the Labour
  Pension?
• - Voluntary Non-state pension funds?
• Which institutions should be covered?
• - NPFs
• - Delegated managers (including investment
  managers and custodians)?

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A PENSION PROTECTION MECHANISM

• Are liabilities open-ended?
• Could NAPF create a black-list of
  inappropriate NPFs?

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SOME CONCLUSIONS
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• Callund Consulting Limited
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• Berkshire SL6 1JT
• United Kingdom
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