Publication:
Risk-Based Supervision of Pension Funds in Australia

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dc.contributor.authorThompson, Graeme
dc.date.accessioned2012-05-29T19:07:53Z
dc.date.available2012-05-29T19:07:53Z
dc.date.issued2008-02
dc.description.abstractThis paper examines the development of risk-based supervision of pension funds in Australia. The large number of pension funds has meant that since the inception of pension fund supervision in the early 1990's the regulator has sought to identify high risk funds and focus its attention on these funds. However, the regulator developed a more sophisticated risk-rating model, known as PAIRS/SOARS, in 1992 in order to apply a more disciplined and consistent ratings methodology. Four reasons are given for the move towards more sophisticated risk-based supervision: 1) creation of an integrated supervisor which allowed the use of techniques used in banking and insurance to be adopted for pension fund; 2) the need to better use available supervisory resources; 3) several pension fund failures; and 4) concerns about industry weaknesses. Supervisory techniques used particularly in the banking industry, such as universal licensing, 'fit and proper' assessment, and risk management requirements were adopted for the pension sector between 2004 and 2006. The paper provides an outline of the PAIRS/SOARS risk-rating model which was also adopted. It observes that the approach provides an analytical discipline to risk assessment, strengthens the link between risk assessment and supervisory response, and allows better targeting of supervisory resources.en
dc.identifierhttp://documents.worldbank.org/curated/en/2008/02/9045880/risk-based-supervision-pension-funds-australia
dc.identifier.doi10.1596/1813-9450-4539
dc.identifier.urihttps://hdl.handle.net/10986/6593
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4539
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectACTUARIAL REPORTS
dc.subjectACTUARIES
dc.subjectADVERSE CONSEQUENCES
dc.subjectANNUAL RETURN
dc.subjectARBITRATION
dc.subjectASSET ALLOCATION
dc.subjectASSET CLASS
dc.subjectASSET CLASSES
dc.subjectASSET PORTFOLIO
dc.subjectASSET PORTFOLIOS
dc.subjectAUDITS
dc.subjectAVERAGE WAGE
dc.subjectBALANCE SHEET
dc.subjectBANKING INDUSTRY
dc.subjectBANKRUPTCY
dc.subjectBENEFICIARIES
dc.subjectBEST PRACTICE
dc.subjectBUSINESS PLAN
dc.subjectCAPITAL ADEQUACY
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCASH FLOW
dc.subjectCHECKS
dc.subjectCOMMERCIAL CREDIT
dc.subjectCOMMERCIAL INVESTMENTS
dc.subjectCOMPETITIVE FINANCIAL SYSTEM
dc.subjectCOMPETITIVE TENDER
dc.subjectCONFLICTS OF INTEREST
dc.subjectCONTRIBUTION
dc.subjectCOST REDUCTIONS
dc.subjectCOUNTRY RISK
dc.subjectCREDIT RATINGS
dc.subjectCUSTODY
dc.subjectDEFAULT RISK
dc.subjectDEFINED BENEFIT PENSION
dc.subjectDEPOSIT
dc.subjectDEPOSITS
dc.subjectDERIVATIVES
dc.subjectDERIVATIVES MARKETS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDISABILITY
dc.subjectDISPUTE RESOLUTION
dc.subjectDIVERSIFICATION
dc.subjectDRIVERS
dc.subjectDUE DILIGENCE
dc.subjectECONOMICS
dc.subjectEMPLOYER CONTRIBUTIONS
dc.subjectEMPLOYMENT
dc.subjectENFORCEMENT POWERS
dc.subjectEQUITIES
dc.subjectEQUITY MARKET
dc.subjectEQUITY MARKETS
dc.subjectEXCHANGE RATE
dc.subjectEXPOSURES
dc.subjectFIDUCIARY RESPONSIBILITIES
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL DERIVATIVES
dc.subjectFINANCIAL DIFFICULTY
dc.subjectFINANCIAL EXPOSURE
dc.subjectFINANCIAL GROUP
dc.subjectFINANCIAL INFORMATION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL POLICY
dc.subjectFINANCIAL POSITION
dc.subjectFINANCIAL PROBLEMS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SOPHISTICATION
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCIAL SYSTEMS
dc.subjectFINANCIAL WEAKNESS
dc.subjectFIXED INTEREST
dc.subjectFOREIGN INVESTMENTS
dc.subjectFRAUD
dc.subjectGENERAL INSURANCE
dc.subjectGENERAL PUBLIC
dc.subjectGOVERNANCE PRACTICES
dc.subjectGOVERNMENT BUDGET
dc.subjectGOVERNMENT PENSION
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectHEDGE FUNDS
dc.subjectHIGH RISK ASSETS
dc.subjectHIGH RISK INVESTMENTS
dc.subjectHUMAN RESOURCE
dc.subjectHUMAN RESOURCES
dc.subjectINDEMNITY INSURANCE
dc.subjectINFLATION
dc.subjectINFORMATION DISCLOSURE
dc.subjectINFORMATION SYSTEMS
dc.subjectINFORMATION TECHNOLOGY
dc.subjectINSURANCE
dc.subjectINSURANCE COMPANIES
dc.subjectINSURANCE COMPANY
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNAL AUDIT
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL BEST PRACTICE
dc.subjectINTERNATIONAL EQUITIES
dc.subjectINVESTING
dc.subjectINVESTMENT ADVICE
dc.subjectINVESTMENT EARNINGS
dc.subjectINVESTMENT MANAGER
dc.subjectINVESTMENT MANAGERS
dc.subjectINVESTMENT PORTFOLIOS
dc.subjectINVESTMENT PROCESSES
dc.subjectINVESTMENT PRODUCTS
dc.subjectINVESTMENT RATINGS
dc.subjectINVESTMENT REQUIREMENTS
dc.subjectINVESTMENT RESTRICTIONS
dc.subjectINVESTMENT RISK
dc.subjectINVESTMENT STRATEGIES
dc.subjectINVESTMENT STRATEGY
dc.subjectINVESTMENT VOLATILITY
dc.subjectLABOR UNIONS
dc.subjectLEGAL INSTRUMENT
dc.subjectLEVEL OF RISK
dc.subjectLEVIES
dc.subjectLEVY
dc.subjectLIABILITY
dc.subjectLIFE INSURERS
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY RISK
dc.subjectLOAN
dc.subjectLUMP SUM
dc.subjectMARKET PRICES
dc.subjectMARKET RISK
dc.subjectMINIMUM CAPITAL REQUIREMENT
dc.subjectMONITORING ARRANGEMENTS
dc.subjectMORTGAGE
dc.subjectOCCUPATIONAL FUNDS
dc.subjectOPERATIONAL RISK
dc.subjectOPERATIONAL RISKS
dc.subjectOUTPUTS
dc.subjectOUTSOURCING
dc.subjectPAYMENT OBLIGATION
dc.subjectPAYMENT OBLIGATIONS
dc.subjectPENSION
dc.subjectPENSION BENEFIT
dc.subjectPENSION FUND
dc.subjectPENSION FUND SUPERVISION
dc.subjectPENSION FUNDS
dc.subjectPENSION SECTOR
dc.subjectPENSION SUPERVISION
dc.subjectPENSION SYSTEM
dc.subjectPENSION SYSTEMS
dc.subjectPENSIONS
dc.subjectPORTFOLIO RISK
dc.subjectPRESENT VALUE
dc.subjectPRIVATE PENSION
dc.subjectPRIVATE SAVINGS
dc.subjectPRIVATE SECTOR DEVELOPMENT
dc.subjectPROBABILITY
dc.subjectPRUDENTIAL REGULATION
dc.subjectPRUDENTIAL REGULATIONS
dc.subjectPRUDENTIAL STANDARDS
dc.subjectPRUDENTIAL SUPERVISION
dc.subjectQUANTITATIVE ANALYSIS
dc.subjectRAPID GROWTH
dc.subjectRATE OF RETURN
dc.subjectREAL ESTATE
dc.subjectREGULATOR
dc.subjectREGULATORS
dc.subjectREGULATORY AGENCIES
dc.subjectREGULATORY FRAMEWORK
dc.subjectREGULATORY REGIME
dc.subjectREGULATORY REQUIREMENTS
dc.subjectREGULATORY STANDARD
dc.subjectREGULATORY SYSTEM
dc.subjectRETAIL FUNDS
dc.subjectRETIREMENT
dc.subjectRETIREMENT INCOME
dc.subjectRETIREMENT INCOMES
dc.subjectRETIREMENT SAVINGS
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectRISK ASSESSMENT
dc.subjectRISK ASSESSMENTS
dc.subjectRISK CONTROLS
dc.subjectRISK MANAGEMENT
dc.subjectRISK MANAGEMENT STRATEGIES
dc.subjectRISK MANAGEMENT SYSTEMS
dc.subjectRISK PROFILE
dc.subjectRISK PROFILES
dc.subjectRISK SCORE
dc.subjectRISK TOLERANCE
dc.subjectSAFETY
dc.subjectSALARIES
dc.subjectSECURITIES
dc.subjectSENIOR
dc.subjectSETTLEMENT
dc.subjectSHARE PRICES
dc.subjectSMALL BUSINESSES
dc.subjectSMALL EMPLOYERS
dc.subjectSMALLER FUNDS
dc.subjectSOLVENCY
dc.subjectSOPHISTICATED INVESTMENT
dc.subjectSOURCE OF RETIREMENT INCOME
dc.subjectSTATUTORY REQUIREMENTS
dc.subjectSUPERANNUATION SCHEME
dc.subjectSUPERANNUATION SYSTEM
dc.subjectSUPERVISION OF BANKS
dc.subjectSUPERVISION OF PENSION FUNDS
dc.subjectSUPERVISORY SYSTEM
dc.subjectTANGIBLE ASSETS
dc.subjectTERMINATION
dc.subjectTRADE UNIONS
dc.subjectTRANSACTION
dc.subjectTRUST DEED
dc.subjectTRUST DEEDS
dc.subjectTRUST FUND
dc.subjectTRUSTEE
dc.subjectTRUSTEES
dc.subjectTURNOVER
dc.subjectUNDERLYING ASSETS
dc.subjectUNDERWRITING
dc.subjectUSE OF DERIVATIVES
dc.subjectVALUATION
dc.subjectVALUATIONS
dc.subjectVALUE OF ASSETS
dc.subjectVOLUNTARY SAVING
dc.subjectWAGES
dc.titleRisk-Based Supervision of Pension Funds in Australiaen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleRisk-Based Supervision Of Pension Funds In Australia
okr.date.doiregistration2025-04-10T10:40:55.742939Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2008/02/9045880/risk-based-supervision-pension-funds-australia
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid456721468206671820
okr.identifier.doi10.1596/1813-9450-4539
okr.identifier.externaldocumentum000158349_20080229141422
okr.identifier.internaldocumentum9045880
okr.identifier.reportWPS4539
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/02/29/000158349_20080229141422/Rendered/PDF/wps4539.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryAustralia
okr.topicFinance and Financial Sector Development::Non Bank Financial Institutions
okr.topicPrivate Sector Development::Emerging Markets
okr.topicSocial Protections and Labor::Labor Policies
okr.topicFinance and Financial Sector Development::Debt Markets
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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