Measuring up

It's not just banking regulation that needs tightening

It’s not just banking regulation that needs tightening but private pension schemes are badly in need of better governance and stronger oversight.

The OECD is calling for both in new guidance issued today, rolling out a blueprint with recommendations on governance, funding, investment and the rights of pension plan members.

Pension funds should improve their risk-based governance structures, taking into account the scale of the fund and short and long-term risk exposure. The organisation is also keen to make sure employees are sitting on pension fund boards but warns that’s not enough. All board members need to understand the ever growing complexity of issues involved in important investment decisions.

So all that may come as a tall order for many countries to comply with, including current wannabe OECD member countries such as Chile, Estonia, Israel, Russian Federation and Slovenia.

Just to make sure these potential newcomers measure up to existing and new principles and guidelines, the organisation is busy putting them through their paces and assessing their regulatory and supervisory frameworks.

About the blog

FTfm is no longer updated but it remains open as an archive.

FTfm's specialist writing team offer their insights into the global fund management industry.

About the authors

Pauline Skypala has been editor of FTfm for four years having previously been deputy personal finance editor. She joined the FT in 1999 and has been writing on savings and investment issues throughout her career.

Steve Johnson, FTfm deputy editor, has been a journalist for 17 years, 10 of which have been with the FT.

Sophia Grene, reporter on FTfm, has been a financial journalist in print and online for 12 years.

Ruth Sullivan has worked as a financial/business journalist and foreign correspondent and for the past 10 years has been at the FT.