AI Summary of 26H. General principles of prudential supervision.
The Pensions Authority is designated as the principal body for prudential supervision of pension schemes and trust Retirement Annuity Contracts (RACs). This oversight requires a forward-looking, risk-based methodology that balances both off-site evaluations and on-site inspections.
Crucially, the Authority will adopt a proportionate approach, tailoring its regulatory oversight to reflect the specific size, nature, scale, and complexity of each scheme or trust RAC. Additionally, in carrying out its supervisory activities, the Authority must remain cognizant of the potential implications for the stability of the European Union's financial systems, especially during critical situations.
26H. General principles of prudential supervision.
(1) Without prejudice to section 10(1A), the Pensions Authority shall be responsible for the prudential supervision of schemes and trust RACs.
(2) The Pensions Authority shall carry out prudential supervision of schemes and trust RACs -
(a) based on a forward-looking and risk-based approach, and
(b) in a manner that comprises an appropriate combination of off-site activities and on-site inspections.
(3) The Pensions Authority shall apply the functions under this Part in a manner which is proportionate to the size, nature, scale and complexity of the activities of the scheme or trust RAC.
(4) The Pensions Authority shall take into consideration the potential impact of its actions on the stability of the financial systems in the European Union, particularly in emergency situations when it is performing its functions under this Part and section 10(1A).