Dutch Central Bank outlines 2019 supervisory priorities for pension funds
On 29 November 2018, the Dutch Central Bank published its supervisory priorities for 2019. In addition to setting out the main risks, challenges and trends for the whole financial sector, the supervisor details its supervisory plans and investigations for each subsector. While the priorities differ for each subsector, it is clear that future-proofing remains a point of attention for pension funds.
Among the various priorities, the Dutch Central Bank will:
- further explore the option of directly supervising pension providers (we presume this means that it will assess whether direct supervision on pension service providers is preferable and possible);
- supervise the implementation of IORP II and look at obstacles impeding liquidation;
- look at the new pension contract;
- continue to safeguard that pension funds correctly disclose their financial position; and
- include climate risks and sustainability in its supervision.
In relation to cyber risks and digitalisation, the supervisor will ensure that pension funds adequately manage their operational and IT risks. Finally, for pension fund management boards, it will focus on conflict of interest risks.
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