IORP II: Dutch supervisor gives new guidance on outsourcing

The Dutch Central Bank recently gave additional guidance on: outsourcing, key function holders and own risk assessments. Pension funds must notify DNB of their outsourcing, and can generally do so via the usual reporting in their annual statements. However, they must notify DNB before the outsourcing agreement is entered into or the actual outsourcing starts in the following circumstances:

• when the tasks of the risk management, internal audit or actuarial functions are outsourced;
• where the management of a pension fund is outsourced or sub-contracted, in specific situations.

Pension funds are also expected to properly prepare notification of key function holders, for instance, by having a prior discussion with the Central Bank about the embedding of the key functions.