Republic of Mauritius- Private pension schemes FSC and APRA sign MoU for enhanced collaboration

The signature ceremony was preceded by the inauguration of a three-day international conference of the International Organisation of Pension Supervisors (IOPS).  The theme of the conference is Financial and governance issues in private pension schemes, and the following topics are being discussed: market trends and supervisory challenges; dealing with underfunded defined benefit pension schemes; and, improving governance of private pension funds.

The event, hosted jointly by the FSC and the IOPS, is bringing together international delegates representing some of the 80-member countries of IOPS.  The Minister of Financial Services and Good Governance, Mr Mahen Kumar Seeruttun; the Vice Chairperson of the FSC, Mr Rajesh Ramloll; the Deputy Chair of the APRA, Ms Helen Rowell; and IOPS’s Secretary General, OECD Senior Counsellor and Special Financial Advisor to the G20 Sherpa, Mr André Laboul, were present.

In his inaugural address, Minister Seeruttun reiterated Government’s commitment in maintaining a fair, safe, stable and efficient private pension industry in Mauritius, which promotes confidence and stability in the financial sector which, in turn, goes a long way in maintaining the country’s good repute as an International Financial Centre.

According to him, it is important that pension funds are properly administered and managed to ensure the sustainable growth of the pensions industry and to overcome the challenges of an evolving market environment.

Speaking about Mauritius’s multi-pillar retirement protection model, the Mr Seeruttun stated that the structure in place in the country consists of a mix of both public and private retirement systems with responsibilities shared among the State, employers, and employees.  In this respect, last year, Government had introduced the Portability Retirement Gratuity Fund by enactment of the Workers’ Rights Act, he pointed out.

In addition, the Minister reiterated the vital role played by regulators in building trust in the pensions industry. Not only are pension funds one of the largest institutional investors and important players in the quest of future economic growth, but those who have worked hard and saved for their future retirement in these pension funds, must have confidence in the regulatory system and trust that their schemes are well managed and protected, he added.

FSC and IOPS

It is recalled that the FSC is the regulator of the non-bank financial services sector and global business in Mauritius.  The Commission is also a governing member of the IOPS since 2005 and actively participates in the annual IOPS and OECD events.

Created in July 2004, the IOPS was instigated by the Organisation for Economic Cooperation and Development (OECD) and the International Network of Pension Regulators and Controllers (INPRS).

The main mission of this independent body is to enhance the quality and effectiveness of the supervision of pension plans. It aims at further improving their development and operational efficiency while allowing for the provision of a secure source of income in as many countries as possible. In this context, regulators from around the world meet on a regular basis to discuss their respective regulatory frameworks and, when relevant, harmonise them.