In a speech at the 2026 Pension Fund Conference, the Norwegian Financial Supervisory Authority set out its supervisory view on pension funds, saying the sector is starting from a strong financial position but faces a changing risk environment. It highlighted structural change and geopolitical risk, the possibility of abrupt international market corrections after high valuations and debt, and domestic vulnerabilities linked to high household debt and elevated property prices. Municipal and private pension funds reported solvency capital coverage ratios of 169% and 183% respectively at end-2025. Supervisory priorities will focus on financial position, the best estimate of liabilities, liquidity risk, governance and controls, capital and contingency plans, buffer capital strategy, control functions and internal audit. On regulation, the speech said current work is aimed at simplification rather than deregulation, including adapting the simplified solvency capital requirement for pension funds to the revised Solvency II framework and updating rules on guaranteed products, borrowed own funds, use of market value in transfers and buffer funds.
Norwegian Finanstilsynet 2026-05-15
Norwegian Financial Supervisory Authority outlines supervisory priorities for pension funds amid changing risk picture
The Norwegian Financial Supervisory Authority used a speech at the 2026 Pension Fund Conference to outline its supervisory view on pension funds, noting strong solvency but rising risks from structural change, geopolitics, potential market corrections and domestic debt and property vulnerabilities. It will prioritise supervision of financial position, liability estimates, liquidity risk, governance, capital, contingency planning, buffer capital strategy and control functions. Regulatory work will focus on simplifying rules, aligning the simplified solvency capital requirement with the revised Solvency II framework and updating rules on guaranteed products, borrowed own funds, market value use in transfers and buffer funds.