Pension regulation
Encyclopedia
Pension regulation is a legal term encompassing the set of laws, rules and authoritative standards governing the pension
industry, and the procedures needed to enforce them.
Pension regulation varies widely from one jurisdiction
to another - notably due to the persistence of discrepancies in the degree of autonomy
and breadth of authority and discretionary power that national and regional pension regulators have at their disposal to enforce efficiently existing laws and regulations, in relation with local judicial practices and varying jurisprudential
trends.
Pension regulation seeks to provide the various norms and standards needed to foster market efficiency, consistency, transparency and accountability across the pension industry: it is a key driver of pension funds’s risk management.
In Europe, in the wake of the 2008-2009 financial crisis, some pension experts such as Anton van Nunen have argued that excessive or misplaced regulatory activism can sometimes have negative unintended consequences, notably when it comes to the strict enforcement of asset liability matching in times high market volatility and the systematic use of bonds-based risk metrics across all asset classes.
Pension
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...
industry, and the procedures needed to enforce them.
Pension regulation varies widely from one jurisdiction
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...
to another - notably due to the persistence of discrepancies in the degree of autonomy
Autonomy
Autonomy is a concept found in moral, political and bioethical philosophy. Within these contexts, it is the capacity of a rational individual to make an informed, un-coerced decision...
and breadth of authority and discretionary power that national and regional pension regulators have at their disposal to enforce efficiently existing laws and regulations, in relation with local judicial practices and varying jurisprudential
Jurisprudence
Jurisprudence is the theory and philosophy of law. Scholars of jurisprudence, or legal theorists , hope to obtain a deeper understanding of the nature of law, of legal reasoning, legal systems and of legal institutions...
trends.
Pension regulation seeks to provide the various norms and standards needed to foster market efficiency, consistency, transparency and accountability across the pension industry: it is a key driver of pension funds’s risk management.
In Europe, in the wake of the 2008-2009 financial crisis, some pension experts such as Anton van Nunen have argued that excessive or misplaced regulatory activism can sometimes have negative unintended consequences, notably when it comes to the strict enforcement of asset liability matching in times high market volatility and the systematic use of bonds-based risk metrics across all asset classes.