Principles of private pension supervision and their fulfilment in the context of European Integration

Abstract

Financial regulation and supervision are some of the most 
difficult tasks of non-banking financial system and the 
operators of this sector, not only in Albania but also 
beyond. Founded in 2006, the Albanian Financial 
Supervisory Authority (AFSA) is a public institution 
independent from the executive and responsible for 
regulating and supervising non-banking financial system 
operators carrying out their activities in this sector. AFSA 
will report to Parliament for its activities. The main areas of 
AFSA activity is the regulation and supervision of:  - - - - 
This 
The activity of the insurance market and its operators,  
The activity of securities market and its operators.  
The activity of supplementary private pensions market 
and its operators.  
The non-banking financial activities.1 
article consists 
of 
a detailed study of 
the 
principles that should govern the Financial 
Supervisory Authority in the framework of supervision of 
supplementary private pensions market. Pension is 
considered as a right not only legal but also social. The 
adequacy of pensions relates to their ability to prevent 
poverty and social exclusion in old age and to ensure a 
decent living standard for the retired, that allow them to 
share in the economic well-being of their country and to 
participate in public, social and cultural life. 
Setting standards in the market through approximation and 
coordination of the legislation based in international 
standards and Directives of the European Union are a 
priority for Albanian Financial Supervisory Authority (AFSA) 
as well.2 
With a personal pension you pay regular monthly amounts 
or a lump sum to the pension provider who will invest it on 
your behalf. The fund is usually run by financial 
organisations such as building societies, banks, insurance 
companies or unit trusts. 
Your decision will largely depend on how much you can 
afford to save for your pension and how much you will get 
from other pensions. 
Personal pensions may be suitable for: 
 people who are self-employed 
 people who are not working but can afford to pay for 
a pension 
 employees whose employer does not offer a 
company pension scheme 
 employees who have the option to pay into a 
company pension, but choose not to 
1www.amf.gov.al 
2E drejta e mbrojtjes shoqerore – Zhaklina Cuci 
 employees on a moderate income who wish to top 
up the money they would get from a company    
pension 
A personal pension may not be the best choice if: 
 your employer offers a company pension scheme  
 your employer offers access to a stakeholder 
pension scheme, with an employer contribution 
The rapid development of international financial markets, 
regulatory and supervisory standards unification and 
commitment of involved parties in their accomplishment, 
has influenced AFSA priorities and one of them is to 
continuously cooperate with counterpart institutions aiming 
to exchange experiences as well as to participate in 
international organizations.  
The AFSA is a member with full rights in international 
organizations of regulators for insurance, securities and 
pension funds. Active participation in these organizations 
aims the increase in cooperation in order to achieve a more 
efficient regulation of these markets in international level. 
This cooperation consists in exchange of information and 
experience, coordination of attempts to set regulatory and 
supervisory standards as well as guaranteeing a common 
assistance in preserving the integrity of non-banking 
financial markets.3