WYNTER
BRIAN WYNTER, executive director of the Financial Services Commission (FSC), announced recently that the Commission would be using a risk-based approach for its pension supervision programme.
This risk-based tool, Mr. Wynter explained, would be utilised to identify irregularities such as significant breaches of investment regulations, unusual investment, under-performance and serious asset-liability mismatches.
He was speaking at a pension seminar hosted by Jamaica National Fund Managers (JNFM) Limited at the Hilton Kingston hotel. The seminar, held under the theme: 'The Impact of Governance and Investment Decisions on the Solvency of Pension Funds', sought to provide invaluable information on critical pension issues.
SELF EMPLOYED PERSONS
Over 100 persons including human resource managers, trade union and industry leaders, as well as self employed persons and individuals who administer their own pension funds, attended the one-day seminar.
Noting that the seminar was timely, Mr. Wynter reported that the FSC would be scrutinising registrants and licensees, based on their risk profile, in administering the new Pensions (Superannuation Funds and Retirement Schemes) Act, and its attendant regulations, which will come into effect shortly.
"The Commission will be attentive to any warning signs of poor management and will promote the adoption of procedures designed to ensure stability and engender public confidence," he said.
In addition, Mr. Wynter indicated that effective governance and appropriate investment and actuarial policies, would also aid in managing risks which are inherent in pension arrangements and, thus, impact their long-term viability.
Sharon Smith, assistant general manager of JNFM, mentioned that JNFM had begun the administration of pension funds and pension investment management services. She said these services offered were designed with care, using the latest technology and best practices to ensure that clients will conform to the new Pensions Act and that their pension funds will be sustainable.
Ms. Smith noted that the services will seek to address challenges that trustees may face. She said among the challenges pension administrators face is the length of time it takes to produce member statements, actuarial valuations as well as inaccurate calculations for termination options.
