In future, regulation is to be centralised and risk-oriented

The report points out that, in the matter of pension benefits, rules and practice vary greatly from one country to another. Nevertheless, there are certain trends of interest for Switzerland. One of these is the trend towards regulatory integration: life insurers, banks and pension funds are increasingly being placed under the oversight of a single authority. Supervision is risk-based and regulatory authorities are becoming more and more independent. These trends have developed as a result of the recent experience on the international capital markets, the expectations on pension fund risk management and the fundamental complexity of pension plan systems.

The arguments for integrated regulation prevail

For the authors, integrated regulation offers the advantage of pooled know-how and a holistic approach to problem-solving. It also maximises resources. Integrated regulation increases legal certainty and credibility, leading to greater regulatory acceptance by pension funds. The major disadvantage of an integrated regulatory authority stemming from various individual authorities lies in the risk of creating an administrative Leviathan. This objection has to be considered against the background of each country's traditional approach to public governance structures.