The proposed structure of the new Supervisory Authority for insurance companies and occupational retirement benefit funds combines traits of both the Central Bank and the Securities and Exchange Commission.
The Cyprus Insurance and Occupational Pensions Authority (AESK), as it will be called, will be governed by a seven-member board composed of the chairman, two executive directors and four other members, according to a draft bill that has been tabled before parliament.
It also provides that the Chairman and two Executive Directors should only be employed by the Authority during their term of office, while the other members should be established individuals, highly ethical, honest and experienced in the financial sector.
The role of the Authority will be to supervise, set policy, make recommendations to the Minister of Finance, approve the budget and so on. In addition, two advisory committees will be set up, one for insurance and the other for occupational retirement pensions.
The Insurance Committee will consist of executive members of the Authority, a representative of the Cyprus Insurance Companies Association, one of the Cyprus Association of Professional Insurance Mediators and one of the Cyprus Actuaries Association.
There will also be an expert appointed by the Council of Ministers and the Permanent Secretaries of the Ministries of Finance and that of Labour.
Regarding the Occupational Pensions Advisory Committee, in addition to the executives of the Authority it should also consist of two representatives of employers’ organisations, three of trade unions, one of the actuarial association, an expert appointed by the Council of Ministers and the Permanent Secretaries of the Ministries of Finance and that of Labour.