Team GTI is developing our Global Transparency Index initiative which will highlight best practice in the most transparent countries and allow different countries to benchmark themselves against others.
What’s the problem that we are helping to solve?
Most Governments around the world are encouraging their populations to become increasingly responsible for their own financial security and welfare in retirement and to take upon themselves more of the financial risks of retirement.
For that ‘risk transfer’ approach to be justified to the community and for the transition to be successful, Governments need to know whether their pensions and investment sectors are efficient and adequately transparent with consumers, particularly in relation to issues such as costs/charges, how/where monies are being invested and the true investment performance being achieved.
Financial services regulation is a complex, expensive and resource-hungry activity but new regulations often fail to achieve their full potential. There are many reasons for that. Regulators and policymakers should take more advantage of what has been done in other jurisdictions but there does not yet exist a centralised source of relevant international transparency data to facilitate the comparison, benchmarking and efficient transference of best practice that is wanted.
The Global Transparency Index is being developed precisely to solve that problem.
Several countries have taken significant measures to drive up the level of transparency in their pensions systems and the resultant transparency achieved represents an enormous societal benefit to those countries. They have implemented good ideas that have taken a considerable amount of time, effort and money to develop and their ideas have been fine-tuned in the real world. The knowledge and understanding of what they have done will be an invaluable insight for other countries to benefit from.
Ultimately, the Global Transparency Index will include all countries around the world. It will be produced annually and the very first iteration will be focused on the levels of transparency in the pension systems of the UK, USA, Canada, Australia and the Netherlands, with the intention to expand the number of countries involved year by year.
By producing the Global Transparency Index, we are creating a powerful platform for sharing best practice that will inevitably lead to questions such as:
What are the benefits of our solution?
There will be many benefits to a wide range of stakeholders. The Global Transparency Index will:
What is the proposed approach?
The Global Transparency Index will be a country-by-country assessment of quantitative and qualitative research data that will form the basis of a ranking system. The countries with the most transparent pensions systems will be at the top of the list and the least transparent countries will be at the bottom. The approach is straightforward:
Summary and next steps
The Global Transparency Index has the potential to deliver real, practical benefits to a wide range of stakeholders around the world and contribute to much better transparency in financial services. We believe this will lead to greater trust of the financial services sector as consumers will feel like they are being told the whole story.
We are looking to design and build the Global Transparency Index in such a way that it becomes a unique and invaluable resource for regulators and policymakers. In the planning stages of the Global Transparency Index we are genuinely keen to take on-board ideas and preferences from all stakeholders to optimize the value of the Index.
You can view the members in Team GTI and all our other Teams, and our Ambassadors by downloading the spreadsheet that you can access through this link; scroll to the bottom of the page.
If you would like to contribute to the discussions taking pace please connect through