Issue: April/May 2006

First Word

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.

Retirement-Fund Reform

“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.

Retirement policies

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.

Living annuities

Tax treatment turned upside down by court decision. With a SARS appeal pending, there could be retrospective legislation if the judgment isn’t overturned.

Big Issue

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.