ง
WEDNESDAY, NOVEMBER 18, 1992
LET
ME ALSO
то SAY THIS: IF THE GOVERNMENT WERE
PROVIDE A GUARANTEE FOR ALL RETIREMENT SCHEMES, THE TAXPAYER
ΤΟ WOULD HAVE ACCEPT AN ENORMOUS CONTINGENT LIABILITY. THE COMMITMENT WOULD BE PERMANENT AND EVER-INCREASING. AND IT COULD WELL BE COUNTER- PRODUCTIVE IF IT WERE TO ENCOURAGE SOME FUND MANAGERS TO TAKE GREATER BY THAN NORMAL RISKS, IN THE KNOWLEDGE THAT THEY WOULD BE BAILED OUT THE TAXPAYER IF THEIR JUDGEMENT PROVED TO BE WRONG.
SYSTEM
BY
ITS
OF
I MUST EMPHASISE THAT THE ABSENCE OF A GOVERNMENT GUARANTEE NO MEANS INDICATES THAT THE GOVERNMENT IS ABROGATING RESPONSIBILITY FOR MONITORING THE OPERATION OF RETIREMENT PROTECTION SCHEMES. ON THE CONTRARY, THERE WILL BE A RIGOROUS SUPERVISION AND CONTROL. UNDER THE OCCUPATIONAL RETIREMENT SCHEMES BILL, ALL RETIREMENT
WITH THE SCHEMES WILL HAVE TO BE REGISTERED GOVERNMENT AND TO SATISFY CERTAIN REQUIREMENTS.
WILL THEY
HAVE TO BE PROPERLY FUNDED, MEANING THAT THE ASSETS OF A SCHEME MUST BE ADEQUATE TO MEET ITS LIABILITIES AT ALL TIMES.
THE ASSETS OF A SCHEME WILL HAVE ΤΟ BE MAINTAINED SEPARATELY FROM THOSE OF THE EMPLOYER, AND CAN ONLY BE USED FOR THE PURPOSE OF THE SCHEME.
THE FINANCIAL POSITION OF A SCHEME WILL HAVE TO BE EXAMINED EACH YEAR BY AN INDEPENDENT AUDITOR. THE AUDITORS' REPORT,
WITH TOGETHER
THE SCHEME'S ACCOUNTS, WILL
ΤΟ HAVE
BE SUBMITTED ΤΟ THE REGISTRAR OF OCCUPATIONAL RETIREMENT SCHEMES, WHO WILL HAVE THE POWER TO INTERVENE IN THOSE SCHEMES WHICH PROVE TO BE FUNDED OR ADMINISTERED IMPROPERLY.
INVOLVE REAL AND
SUCH A SYSTEM OF SUPERVISION AND CONTROL WILL SIGNIFICANT RESPONSIBILITIES. HAVING SAID THAT, I SHOULD MAKE IT CLEAR WAYS OF THAT I DO NOT WISH TO RULE OUT COMPLETELY OTHER PRACTICABLE
EVEN ENGENDERING
GREATER CONFIDENCE IN THE RETIREMENT PROTECTION SYSTEM. WE ARE WILLING TO LOOK AT REALISTIC SUGGESTIONS.
/THE SECOND