The Organisation for Economic Co-operation and Development and the International Organisation of Pension Supervisors are seeking public comment on draft guidelines on the licensing of pension entities.

The OECD and the IOPS are inviting comment on draft guidelines to help pensions regulators and supervisory authorities improve the way occupational, private pension entities, such as pension fund management companies or pension trustees, are managed in order to boost their financial security and performance.

The guidelines, developed jointly by the OECD and the IOPS, set out a framework of minimum conditions that pension entities should meet when applying for a licence to start operating.

Issues covered by the guidelines include minimum requirements relating to the starting capital, funding policy and risk management mechanisms of pension entities, their governance structure and investment policy. They also outline the circumstances in which a licence to operate may be withdrawn.

The guidelines contain a series of recommendations on how the licensing of occupational pension plans should be regulated and list the powers that licensing authorities should have at their disposal when assessing licensing applications. The guidelines also promote fair and transparent licensing rules and assessment processes.

The deadline for comments is October 5.