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Research On China's Occupational Pension Fund Investment Supervision

Posted on:2008-04-05Degree:MasterType:Thesis
Country:ChinaCandidate:C Y LiuFull Text:PDF
GTID:2189360212490922Subject:Business management
Abstract/Summary:PDF Full Text Request
Occupational pension is in the second pillar of the modern old-age society, which is one of the most important components of the modern old-age social security system. Occupational pension has two attributes, one is financial assets attribute which make it necessary to do some investments, the other is old-age indemnification attribute which make it necessary to supervise its investments. There are many levels of occupational pension fund investment supervision, for example, government institution supervision, operation organizations mutual supervision, internal control system supervision, public intermediary supervision, etc. Among all of these levels, government institution's supervision is implemented legally by full-time supervision department and has the strongest supervision dynamics. This paper is trying to probe into occupational pension fund investment supervision system from government institution supervision.Complete occupational pension fund investment supervision system involves legal basis for the supervision, supervision main body, supervision content, supervision method and so on. Influenced by its social security system, economic development level, legal origin, financial market growth level as well as economic and cultural development history, each country's government presents huge differences in the policy choices of occupational pension investment supervision system. In this paper, several typical OECD countries and partial Latin America countries were chosen in order to analyze comparatively their supervision main body organizational structure, investment managers' access mechanism, portfolio selection, supervision of investment performance and so on. On the basis of these successful experiences for reference, China's occupational pension fund investment supervision system can be perfected.Trust occupational pension was adopted in China. In recent years, with series of specific occupational pension fund investment laws and regulations promulgated, complete occupational pension fund investment operation supervision system has been established initially, including the setup of supervision main body organizational structure, stricter market access and withdrawal mechanism, occupational pension fund assets' independence, investment portfolio choice, information disclosure system, risk reserve systems, etc. Existing investment supervision system, which has covered the entire process of occupational pension fund investment operation and matches China's reality of occupational pension fund's initial development, capital market imperfection, financial intermediaries' immaturity, is playing a positive role in regulating effectively occupational pension fund investment. However, compared with foreign mature investment regulatory system, it still has some inadequacy such as fiduciary restriction mechanism, information disclosure and reporting system, investment options and risk protection mechanisms.The conclusion of this paper is that occupational pension fund investment supervision must reflect the idea of entire process supervision, initiative supervision and functional supervision, introduce risk-oriented supervision approach, from the following aspects start to perfect China's occupational pension fund investment supervision system: 1. Promote the integration of institutional supervision and functional supervision, perfect the occupational pension funds' synergies supervision system; 2. Clear the legal status of Occupational Pension Board, play fully the role of the staff, restrict effectively fiduciary acts; 3. Expand information disclosure channels, promote supervision transparency; 4. Perfect the investment managers' market access and withdrawal mechanism; 5. Perfect occupational pension fund's investment portfolio supervision, promote the transfer from quantitative restrictions supervision to the "prudent" rules supervision, restrict clearly the conflict-of-interest transactions and self-investment; 6. Establish multi-layered risk protection mechanism in order to ensure occupational pension plan's stability and protect beneficiaries' future earnings.
Keywords/Search Tags:Supervision, Quantitative Restrictions, Prudent Rules, Conflict-of-interest Transactions
PDF Full Text Request
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