South Korea’s National Pension Service (NPS) has recently decided roles and authority of its full-time expert committee, which was established this year to strengthen its fund management expertise.
At the fourth meeting of the NPS’ fund management committee, the fund’s highest decision-making body, held on April 17, the committee members received reports on the roles of the full-time expert committee and limits of disclosure information.
Three full-time expert committee members will mainly pre-review and deliberate agenda before they are submitted to the fund management committee and report their discussion results.
In particular, the chair of the expert committee, who will serve one year term, will preemptively review and deliberate items which appear on the fund management committee meeting agenda for consideration and report results to evaluation committee and fund management committee. The chair will also review and deliberate matters related to the fund management policies or operational rules for the expert committee.
The remaining two will participate in the committee meeting as full-time expert members. Also, they can express their views at the fund management committee meeting when requested by the chair or other members, but no voting rights will be given.
To make sure expert committee members have access to more detailed and a wide range of information in order for them to express their views, the NPS has set limits for information disclosure based on cases.
For individual investment case of the fund management committee, the full-time expert committee will receive information related to agenda items for the responsible investment ＆ governance committee meeting. For matters in relation to risk management, expert members will receive information related to agenda items and results of the risk management, performance ＆ compensation committee meeting.
Request and provision of information between the pension scheme and expert members will be done through its Integrated Resource Information System (IRIS). At the same time, the NPS plans to implement stricter rules for the security maintenance.
The NPS appointed three full-time expert committee members on February 24. The three members are Oh Yong-suk, a professor at the training institute of the Financial Supervisory Service; Won Jong-hyun, a vice president of National Pension Research Institute under the NPS; and Shin Wang-gun, a president of Financial Analyst School. They will serve a three year term while the committee chair position rotates every 12 months.
Previously at the second fund management committee meeting held in February, the committee decided to pay total 632 million won to three full-time expert committee members and six supporting personnel and spend 355 million won on operating expenses. (By reporter Han Hee-yeon)