Fundamental concepts

This chapter aims to place the discussions that follow within the context of the regulation and supervision of pension scheme governance. It starts with a brief overview of the development of and fundamental differences between private pension systems and their regulation and supervision across the world, including the development of risk-based regulation and supervision. The chapter then considers what constitutes good pension scheme governance and the main weaknesses and challenges relating to it. The chapter goes on, drawing on Organisation for Economic Cooperation and Development (OECD) and International Organisation of Pension Supervisors (IOPS) guidance, to highlight ways in which regulation can promote better governance and how supervisory authorities undertake their oversight of governance arrangements. Finally, the chapter outlines the United Kingdom’s regulatory and supervisory framework and its application to governance.