In control through better communication!

End of November 2010 the Dutch Regulator (DNB) met with certifying actuaries as well as external auditors. Both meetings were dominated by the theme of "accuracy of reporting" for pension funds, an important DNB monitoring theme.

DNB stressed that all pension fund reports are a key source of surveillance information. With confidence, every Pension Fund stakeholder should be able to rely on the accuracy and completeness of the information in pension fund reports. In practice, this is not always the case. DNB will increasingly hold pension fund boards, certifying actuaries and accountants responsible for taking appropriate actions and - if  necessary - DNB will enforce action.

Topics
Main topics on the accountant-Actuary table are:
- the valuation of technical provisions
- the valuation of the required equity and
- compliance with the prudent person rule.

In control through better communication

The introduction in 2011 of so called 'multi-party meetings' (ie consultation between pension fund management, actuary, accountant (auditor) and regulator DNB) with some larger pension funds will certainly help to improve communication between all concerned parties.

This excellent initiative will also certainly help pension funds to increase control.
Key issue is that the pension Board has (to keep) final responsibility and DNB has to take care that they do not implicitly take over part of this responsibility. Secondly DNB is responsible for an efficient and clear regulation/governance structure. Too many informal consultation meetings might not be efficient and bear the risk of unclear responsibilities. 


Sources:
- Newsletter Pensions DNB (Dutch, 2011)
- Source: Four leaved clover Coin