Cap. 514 Art. 13ASystem of governance for occupational retirement schemes.

(1) A Retirement Scheme Administrator shall be required to have in place an effective system of governance which provides for sound and prudent management of its activities in connection with the overall operation and administration of an occupational retirement scheme. The system of governance requirements shall be laid down in Pension Rules.

(2) A Retirement Scheme Administrator shall:

(a) ensure that persons carrying out a key function, and where applicable, persons or entities to which a key function has been outsourced, are fit and proper, in accordance with criteria set out in the Pension Rules;

(b) have in place the following key functions:

(i) an effective risk management system, including a risk management function;

(ii) an effective internal audit function; and

(iii) where applicable, an effective actuarial function;

(c) as part of the risk management system, conduct its own risk assessment and the risk assessment of the occupational retirement scheme;

(d) have in place an effective internal control system;

(e) if it outsources any of its functions or activities, remain fully responsible for discharging all of its obligations under this Act and the regulations and Pension Rules issued thereunder.

(3) The systems and functions referred to in sub-article (2) shall be determined by Pension Rules.

(4) The system of governance shall be proportionate to the nature, scale and complexity of the operations of the occupational retirement scheme.