Prudential expectations of the FSMA regarding the governance of institutions for occupational retirement provision
The Law of 27 October 2006 on the supervision of institutions for occupational retirement provision lays down new legal standards for governance, in the framework of the transposition in the Belgian legislation of the Directive 2003/41/EC on the activities and supervision of institutions for occupational retirement provision.
In accordance with the « prudent person » principle, the legislators adopted a qualitative rather than a quantitative approach to the management of IORPs. This involves more responsible and professional management and results in the observance of the principles of good governance of the IORPs.
The principles of good governance must be implemented in a reasonable and proportionate manner. In accordance with the principle of subsidiarity, it is the responsibility of each IORP to define a consistent and adequate policy of governance, which is relevant to the activities it carries out, depending on the volume, nature, and complexity of its activities and hence on its risk profile.