Improving supervision of pension asset management: transition to prudential (risk-based) supervision

The Object of the Study is the management of pension assets - investment / placement of pension funds (pension savings and pension reserves). The Subject of the Study is the introduction of prudential (risk - oriented) supervision in order to improve the financial stability of non-state pension funds (NPF), ensuring the safety of pension assets. The purpose of the article is to analyze the main positions and principles of this supervision, its advantages and disadvantages.The Main Theoretical Aspects of the article: one of the basic goals of macroprudential supervision is creating conditions under which non-state pension funds would implement effective risk management which would improve the safety of pension assets. Among the tools of such supervision: stress testing, creating a risk management system in NPF and management companies participating in the pension system, proportional regulation. At the same time, macroprudential supervision does not exclude the establishment of capital requirements, corporate governance, restrictions on investment objects and the structure of the investment portfolio. In view of the introduction of such supervision, it is proposed to revise a number of requirements for non-state pension funds, as well as for the established restrictions on investing pension funds, e.g. to provide for the possibility of reducing the established requirement for the minimum amount of NPF's own funds, without reducing the requirements for the adequacy of assets for performance and obligations to depositors, participants, and insured persons). In view of the convergence of mandatory pension insurance (MPI) and non-state pension provision (NPP) systems and in connection with the new concept of the pension system under discussion it is proposed to abandon proportional regulation of the NPF's activities depending on the type of activity and to abandon differences in investment requirements in the MPI and NPP systems.