Investments, the Ministry of Labour calls the pension funds to account

A clampdown on the organisation of the 20 pension funds is on the way. The Ministry of Labour led by Marina Calderone sent a specific request on 26 June to the boards of statutory auditors of the bodies that manage the pensions of two million Italian professionals. "They are asked to report, by 30 September next, having regard in particular to the points indicated in the conclusion of the parliamentary commission's investigation," reads the document signed by the director general for social security policies, Maria Sabrina Guida.

The Commission mentioned is the Bicameral Commission for the supervision of social security institutions chaired by the Lega Nord MP Alberto Bagnai. And the commission's harsh conclusions have been summarised by the Ministry of Labour in seven points: among those to be reported, and on which the auditors will have to report, is 'the adequacy of the organisational structure and in particular of the offices that deal with the management and control of investments'; in detail, the board of auditors of each individual Cassa will have to give an account of what is being done and 'any current or planned strengthening initiatives'.

The recommendations of the Bagnai Commission were taken literally by the Ministry of Labour. Among other things, it was requested to describe 'the robustness of the procedures for identifying advisors and the methods adopted to manage the risk of over-reliance'. In fact, the Bagnai Commission emphasised the great involvement of advisors in the investment activity of the funds, which, according to the supervisory body, should have entailed different policies depending on the different target audience. Instead, it was pointed out, 'a certain homogeneity has emerged'.

Hence the Ministry of Labour's request (it is one of the seven points) to clarify 'the coherence of investment policies'.

Other points to be addressed by the boards of auditors in the reports to be drawn up this summer concern potential conflicts of interest or, more specifically, 'the measures taken to counteract possible conflict of interest profiles in cases of management participation in the advisory boards/advisory committees of OICRs (funds and Sicavs).