Switzerland's pensions regulator, the Oberaufsichtskommission Berufliche Vorsorge (OAK BV), has called for stronger supervisory powers, citing the growing complexity of collective and joint pension institutions.

The call follows the Swiss Federal Council's evaluation of the country's occupational pension structural reform, which concluded that the changes had strengthened oversight, governance and transparency but identified the need for targeted legislative amendments.

The report also highlighted the positive development of cooperation between the OAK BV and the cantonal and regional supervisory authorities.

The OAK BV said it agreed with the assessment, adding that further legal changes were now needed “against the backdrop of the growing importance of increasingly diverse and, in some cases, complex collective and joint pension institutions, and the supervisory challenges they present”.

The regulator said legislative action was needed in five key areas, including strengthening its supervisory powers, introducing a nationally harmonised risk-based supervisory framework, and improving the independence of external auditors while further developing the audit process for pension institutions through a more risk-based approach.

The remaining priorities were introducing specific rules for collective and joint pension institutions and regulating broker remuneration.

Specifically, the OAK BV called for clearer responsibilities and stronger supervisory powers, particularly the ability to issue binding directives and carry out inspections.

Although the financial position of Swiss pension institutions remains sound, the OAK BV said structural changes in the occupational pensions system were increasing demands on supervision, governance and transparency.

“The legislative changes proposed by the OAK BV are intended to strengthen the long-term stability of the system, improve protection for pension scheme members and promote a more consistent, risk-based supervisory approach across Switzerland,” it stated.

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