Integrated financial supervision and private pension funds

DEMAESTRI, EDGARDO Y GUSTAVO FERRO

Supervising private pensions: institutions and methods

Organisation for Economic Development and Co-operation (OECD)

Lugar: Paris; Año: 2004; p. 97 - 138

This study analyzes the cost and benefits of integrating the supervision of pensions with that of other financial activities and services. The literature has dealt with the integration of the supervision of banking, insurance and securities markets (Llewellyn, 1999, Demaestri and Guerrero, 2003), the joint supervision of insurance and pensions (Davis, 2001), the supervision of pension funds (Shah, 1997, Srinivas et al, 2000, Demarco et al, 2000, Rocha et al, 1999, OECD Working Party on Private Pensions, 2002 and 2003), and the separation of banking supervision from central banking (Demaestri and Guerrero, 2003). This study seeks to expand on these issues, focusing on the integration of pension regulation. In particular, it seeks to make a conceptual contribution with respect to the reforms in financial supervision and pension systems in Latin America. The subject is an important one. The financial problems afflicting pay-as-you-go pension systems have led to the promotion of complementary private capitalization schemes (both voluntary and mandatory) or substitutive ones (mandatory). The reforms that began in Chile in 1980 have been applied in a score of Latin American countries and ´transition economies´. Discussion on pensions is also a key theme in Europe and the United States. At the same time, the amount of resources intermediated by pension systems is substantial. In 2000, close to 30% of financial assets of the countries belonging to the Organization for Economic Cooperation and Development (OECD) were accumulated in pension funds