MW-Financial Sector Technical Assistance - P122616
Financial Sector Technical Assistance Project (FSTAP) | Published August 17, 2016 - Deadline August 26, 2016
Eoi For Recruitment Of Resident Advisor On Supervision Of Pension
RESERVEBANK OF MALAWI
FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT
RECRUITMENT OF RESIDENT ADVISORON SUPERVISION OF PENSION
Name of Project: Financial Sector Technical Assistance Project (FSTAP)
Description of Position:: Resident Advisor on Supervision of Pension
Credit No. 4897 Mw
Project ID No. P122616
Date of Issue: 13th August 2016
The Government of the Republic of Malawi has received financing from the World Bank toward the cost of the Financial TechnicalAssistance Project(FSTAP), and intends to apply part of the proceedsof this credit towards eligible costs for the recruitment of a Resident Advisor on Supervision ofPension.
The Government of Malawi (GoM) recognizes the vital role thatthe Financial Sector plays inthe social economic development of the country. While significant progress in the regulatory framework has been made, the formalfinancial sector in Malawi remains small, concentrated and services a narrow clientele. The Reserve Bank of Malawi (RBM), on behalfof the GoM has taken a leading role in the development of a policy and institutional framework for the development of the financialsector.
A key intervention in these reforms is the implementation of the five-year Financial SectorTechnical Assistance Project (FSTAP) which the GoM is financing with a credit from the International Development Association (IDA)of the World Bank. The project aims at increasing access to finance for the currently unbanked but bankable populationofMalawi. The project'sprimary end-beneficiaries will be the financially excludedpopulation.
The Reserve Bank of Malawi intends to use part of the proceeds of the credit to make eligiblepayments for the services of a resident advisor on supervision of pension to build technical capacity of the Pension and InsuranceSupervision Department to regulate and supervise the pension industry in Malawi.
Theconsultancy is open to individual consultants and the prospective candidate will be under the supervision of the Pension andInsurance Supervision Department (PISU).
2.0Objectives of the Assignment
The main objectiveof the assignment is to build capacity of the pension and insurance supervision department to effectively and efficiently carry outregulation and supervision of pension funds in line with international standards and best practice. Specific objectives of theassignment are as follows:
1. To assess effectiveness of existing pension supervision activities againstinternationalstandards and best practice and implement improvements to ensure compliance;
2. To recommend a supervisory philosophy and approach for the regulation of pension entities;and
3. To develop procedure manuals that will support processes in pension supervision, includingbut not limited to licensing, off-site surveillance, on-site examinations, and enforcement;
4. To strengthen capacity for staff in the Pension and Insurance Supervision Department of theReserve Bank of Malawi to effectively supervise the pension industry.
3.0Scope of the assignment
Theassignment is divided into three phases as follows:
3.1Phase one (1 month)
In thefirst phase, the Consultant will conduct a comprehensive review of the existing market structure and effectiveness and adequacy ofexisting supervision activities. The work shall focus on, but not limited to:
Review the Pension Act to appreciate the Malawian pensionmodel;Assess the risks to which pension funds in Malawi are exposed andadequacy of the mitigating activities;Review existing regulations for pension funds and pension serviceproviders;Assess adequacy of prudential requirements and standards of marketconduct;Review of existing pension supervision approach;Assess PISU's supervision objectives, organisation structure and jobdescriptions;Assess reporting requirements of various pension entities; andReview previous consultancy reports on regulation and supervision ofpension funds.
3.2 Phase two (2 months)
During thisphase, the Consultant based on work completed in the first phase must:
Recommend a supervision philosophyand approach for on-goingsupervision of all pension entities including pension funds, administrators, investment managers andcustodians;Develop supervision processes procedure manuals covering all pensionentities in the areas of licensing,off-site supervision, on-site supervision and enforcement actions to support the supervisionapproach;Develop, after liaising with the Pension and Insurance Department,relevant directives and guidelines that will facilitate adequate regulation and supervision of pension entities as provided for inthe Pension Act. Draft necessary documentation for the design and implementation ofan effective pay-out phase appropriate for the national pension scheme in Malawi;Undertake a training needs assessment and develop a training programfor PISU staff.
3.3 Phase three (2 months)
During thisphase the consultant shall:
Execute the training program designed in phasetwo;Assist the Department in the implementation and application of thesupervision framework and processes, and examination procedures manual by conducting pilot off-site analyses and on-siteexaminations; Conduct at least two pilot on-siteexaminations using the recommendedsupervision approach;Conduct a training workshop for staff in the Pension and InsuranceSupervision Department; and Conduct an awareness workshop for the pension industry on theapplication of the supervision framework.
TheConsultant will be required to deliver on the following:
An inception report within two weeks of concluding first phaseoutlining the findings, strengths, weaknesses, opportunities, and threats to supervision of pension. The reportmay recommend anappropriate risk based supervision approach to supervision of pension;A framework to facilitate rolling out of the supervisionapproach;Supervision Processes and examination proceduresmanuals;Relevant regulations and directives as discussed with the departmentincluding but not limited to directives on the pay-out phase and investment of pension funds.Recommended amendments to the Pension Act consequential to theconsultancy work;Training program and implementation plan within two weeks priorto the end of the second phase;Draft report at the end of the second phase;andFinal report within one month after conclusion of the third andfinal visit of the consultancy.
The candidate must meet the following qualifications:
Master's degree in either actuarial science, economics, finance orbusiness administration or comparablequalifications;At least 10 years' work experiencein the regulation and supervisionof pension funds; and Experience in consulting within the region i.e. within and outsidethe SADC region, will be an added advantage
6.0 Reporting Arrangements
Theprospective candidate will be report to the Director of Pension and Insurance Supervision Department of theRBM.
7.0 Duration of the Assignment
The assignment is for amaximum period of 5 calendar months from the date of signing the contract.
8.0 Selection of Consultant
The consultant will be selected in accordance with the World Bank's Guidelines: Selection andEmployment of Consultants by World Bank Borrowers, of January, 2011 revised in 2014.
9.0 Submission of applications
Interested individual consultants must provide information indicating that they are qualifiedto perform the services (i.e. CVs, qualifications, description of similar assignments, experience in similar conditionsetc.).
Applications must be delivered to the addressbelow by 26th August, 2016.
The Project Manager
FinancialSector Technical Assistance Project (FSTAP)
ReserveBank of Malawi
Lilongwe 3, Malawi.
Tel: +2651770 600/924
FAX: (265) 1 773 752
E-mail: email@example.com and copy firstname.lastname@example.org