News Middle East26 Jun 2019

Turkey:Govt issues regulations for licensing individuals as pension agents

| 26 Jun 2019

The Turkish authorities have gazetted a set of regulations governing individual pension intermediaries, setting out required qualifications, working principles and licensing.

According to the regulations, to qualify as an individual pension agent, the applicant must meet at least one of the following conditions:

1- Be a graduate of a high school or equivalent and worked in insurance companies, insurance agencies, insurance brokers, banks, capital market intermediary institutions or similar financial institutions for a period of at least one year or have successfully completed courses and internships related to private pension intermediation within the scope of public employment programmes approved by the Ministry of Finance & Treasury.

2- Be a graduate of a two-year programme in banking, insurance, finance, securities and capital markets, accounting, money and capital management, or marketing and sales management associate degree programmes, or programmes with similar educational content approved by the Ministry.

3- Be a graduate of a four-year higher education programme.

4- Pass a pension intermediation exam.

 

In 2017, the Turkish government made it mandatory for employees to subscribe to private pension plans. Turkish employees who are under 45 years of age and working under a service contract will be automatically enrolled in a pension plan and required to contribute a minimum 3% of their gross salaries to the pension plan. However, the system allows employees to opt out after two months. It was found that after the system went into effect, 60% of 12m workers included in the system exited the plan. The government is now working on restructuring the system to require employees to stay in the plan for three years.


 


 

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