Since 1 January 2007, the AFM has carried out supervision under the Pension Act [Pensioenwet] and the Act on Obligatory Occupational Pension Schemes [Wet verplichte beroepspensioenregeling].
There are two main categories of institutions which implement pension schemes and which are therefore covered by the AFM’s supervision, namely pension funds and life insurance companies that implement group pension contracts. These are institutions which implement employer pension schemes. This means that, since 1 January 2007, the AFM’s supervision has covered business sector pension funds, company pension funds, occupational pension funds and superannuation funds, on the one hand, and certain life insurers on the other. The AFM’s task is to supervise the conduct of pension administrators. Its supervision covers two issues:
- the provision of information prescribed by law and
- the duty of care as regards individual pension build-up on an investment basis.
The objective of the first task, namely supervising the provision of information, is to raise awareness of the individual pension provision. The idea is that each (former) participant, (former) partner and retired person should be able to understand what pension he or she can expect to receive.The objective of the second task, supervising the duty of care, is to protect the (former) participant in what is known as a defined contribution scheme against incorrect investment decisions. In short, investment risks must be controlled in the light of the approaching pension date.