Trustees are the backbone of fund governance. Properly done, the job is highly demanding. That there’s far too little incentive to become a trustee impacts adversely on the whole system. Read full article...
Advice needed on outsourcing;
Viva the Red Flag; Fund assets
aren’t property of employer.
“Bulking” is only one aspect of costs on which
National Treasury’s new discussion document is
likely to focus. Consolidation of smaller funds, to cut
expenses, will probably be a key recommendation in
preparing a new Pension Funds Act.
RFT is a Really Foolish Tax
There’s no justification for retirement-fund tax to be
retained. The reason given by Finance Minister Trevor
Manuel, for reducing but not abolishing it, implies mistrust
of service providers. This is not an incentive to save.Read full article...
This & That
Eskom’s Terrence Chauke takes the hot seat at the Principal Officers Association.
Surprise, surprise. There’s an
argument that fund trustees do not
owe a fiduciary duty to fund members.
The “statement of intent”,
agreed between the life
offices and the finance
minister, has a dark side.
As a compromise, it’s
probably better than nothing.
Tax treatment turned upside down by
court decision. With a SARS appeal pending, there could
be retrospective legislation if the judgment
Black members of collective investments,
notably retirement funds, simply must be
recognised for purposes of company ownership
under the B-B BEE scorecard. Their ownership
is no less beneficial for being “indirect”.
And the Department of Trade & Industry
seems now to have an open mind.
Financial Sector Charter
Dion George analyses the impact
of broad-based black economic
empowerment, with employment
of worker funds apparently set for
another evolutionary leap.
United States legislators and regulators prepare to
act on financial advisors’ conflicts of interest.
Between the lines, there’s a moral for South Africa.
'Secret profits' that aren't so secret.