The document discusses an overview of investment governance for occupational retirement provision, highlighting key requirements such as risk management, transparency, and clear roles. Lessons learned include the importance of supervisory bodies, equitable risk distribution, and proper disclosure monitoring. Future developments focus on enhancing risk management through climate stress tests and transparency in derivatives and hedging.

1. Prepared for:
Prepared by:
Date: 20 February 2023
Occupational Retirement Provision Forum
Tim Currell
Lessons learned &
future developments
EU IORP Investment
Governance

2. Overview
Investment
Governance
Security
Strategy
Structure
Documents
Monitoring
Disclosure
 Key requirements
‒ “Safe haven”
‒ Proportionate
‒ Transparent structure
‒ Clear roles
‒ Risk management
‒ Internal controls
‒ Avoid conflicts
‒ Fit & Proper persons
‒ Clearly documented
2

3. Lessons learned #1
• Supervisory body
• Investment Committee?
• External advisors
Structure
“Equitable spread of risks
and benefits between
generations”
Strategy
• Custodian / Depository
• Asset manager(s)
Security
3

4. Lessons learned #2
• Members
• Sponsor(s)
• Regulator(s)
Disclosure
• Performance
• Risk metrics
Monitoring
• SIP, ORA
• Mandates, COI, BCP
Documents
4

5. Future developments
Focus on risk management
• NACE codes
• Climate stress
tests
ESG & Climate
Look-through of
UCITS funds
Transparency
Disclose derivative
information
Hedging
5

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2023