Before approving an application, the Authority has to be satisfied that the Trustee(s) or any person associated with the management/administration of the Occupational Pension Institution ("IORP"), and its assets/liabilities, is "fit and proper" to hold that position. The "fit and proper" criteria include both technical competence and integrity. The Authority must be satisfied that the IORP satisfies the criteria as set out in Section 5 of the Financial Services (Occupational Pensions Institutions) Act 2006. The IORP must be adequately and properly governed and administered, and sufficient controls must be put in place to reduce the risk of error and fraud. It is mandatory that the IORP is set up under a trust and that, in order to protect members and beneficiaries, it should limit its activities to retirement benefit provision.
In order to ensure that applicants meet all the regulatory and legal requirements, the forms required for applying for a licence are not available on the website. Before application forms are provided the Authority will want to see a summary of the full plan described below regarding the setting up of the IORP.
You should prepare a plan setting out how the proposed IORP is to be set up, governed and administered. The plan should, as a minimum, give a brief description of the rules regarding the scheme including the type of scheme to be set up; its current/future membership; the nature of benefits; and details of all professional advisers and trustees. A description of the sponsoring undertaking including its activities, group structure (if applicable) and financial position. The plan should set out the nature of the administrative work to be located in Gibraltar, and the nature and manner of records that will be maintained.
After the summary has been received and reviewed, the usual next step is a meeting between the Head of Funds and Pensions Supervision and the applicant and/or the applicant's advisers to further discuss the proposal. Once the Authority is satisfied that the proposal is viable, application forms will then be provided to enable the applicant to lodge a formal application.
Further information may be found in the Occupational Pensions Institutions Legislation.