Finian McGrath (Dublin North Central, Independent)
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Question 607: To ask the Minister for Social and Family Affairs if his attention has been drawn to the fact that Ireland's pensions are invested globally and that consequently Irish regulation does not afford protection to those underlying pensions moneys that are outside Ireland's jurisdiction. [10035/07]

Finian McGrath (Dublin North Central, Independent)
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Question 608: To ask the Minister for Social and Family Affairs if his attention has been drawn to the fact that pensioners and investors have not been correctly informed that Irish regulations cannot afford protection to moneys invested outside of Ireland. [10036/07]

Finian McGrath (Dublin North Central, Independent)
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Question 609: To ask the Minister for Social and Family Affairs if his attention has been drawn to the fact that the entire pension and investment industry here is entirely defective and based upon defective principles of structure and methodology. [10037/07]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 607 to 609, inclusive, together.

Occupational pensions schemes in Ireland are organised on a trust basis and trustees are required to, at all times, act in the best interests of the scheme members. The operation of pensions schemes is governed by the provisions of the Pensions Act 1990 which specifies that the trustees must provide for the proper investment of the resources of the scheme in accordance with the rules of the scheme.

Usually trustees can, and do, delegate the actual conduct of the scheme's investments to a professional investment manager. Nevertheless, the responsibility for monitoring the conduct of the investment manager and the performance of the assets rest finally with the trustees. More recently, Ireland implemented the EU Directive 2003/41/EC on the activities and supervision of institutions for occupational retirement provision (IORPS), which sets out a framework for the operation and supervision of occupational pension schemes in all EU Member States. In relation to investment, the directive establishes the "prudent person approach" as the underlying principle for investment. This principle was already firmly established in Ireland under law.

The Occupational Pension Schemes (Investment) Regulations (SI 294 of 2006), which were signed into law pursuant to the implementation of the IORPs Directive, lay down the investment principles of that Directive. Article 5 of the regulations requires that trustees of pension schemes, with 100 members or more, prepare a statement of investment policy principles (SIPP). The information required in a SIPP includes investment objectives, investment risk measurement methods, risk management processes used, and the strategic asset allocation implemented with respect to the nature and duration of pension liabilities.

The investment regulations also specify the investment duties of trustees of pension schemes in detail. For all schemes, other than one-member arrangements, the regulations stipulate that pension scheme assets must be invested in a way which ensures security, quality, liquidity and profitability of the portfolio as a whole, so far as is appropriate, having regard to the nature and duration of the expected liabilities of the scheme. The regulations require that the funds of a pension scheme must be invested predominantly in regulated markets (EU or otherwise) and be properly diversified in order to avoid risk to the whole portfolio.

Issues in relation to investments generally are a matter for the Financial Regulator and my colleague the Minister for Finance.