A shop steward wants to know why he should undergo trustee
training. The question isn't as simple as it sounds. Here's an attempt at an
answer. Read full article...
Duty of confidentiality on fund's management boards.
When union members are elected by their unions to serve as
trustees on boards of funds comprising mainly union members, are they obliged to
follow union mandates and be accountable to the unionists who elected them?
Certainly not, the High Court has ruled.
The Financial Services Board circular PF130 looks a lot more
complex than it really is. Problem is with the presentation, not the content.
Aspirant trustees should not be intimidated, and trustees will find it a most
useful guide to good governance. Read full article...
Trevor Manuel is unhappy that the Setas are not doing all they
should with the money at their disposal. It's a sharp wake-up call.
This & That
August was the most turbulent month on world markets. Experts are
divided on the reasons, and governments on the policy responses, so "volatility"
is likely to be with us for some time yet. Some pension funds have been
Between the proposed National Savings Fund and the ever-enlarging Public
Investment Corporation, shareholdings by state-controlled bodies in the JSE-Listed
companies can only increase. Particularly with the PIC flexing its activism
muscle, there are overarching political implications that corporate South Africa
cannot ignore. Read full article...
National Savings Fund
Actuarial research quantifies the extent of the carve-out from
membership of existing funds. The numbers are huge, and worrying.
When a company is fined for wrongful behaviour, it’s wrong that shareholders are
penalised for the wrongs committed by its directors. There is recourse available
against them, if only it were used.
Back to the whole BEE debate. It’s peculiar that no companies or
funds have yet used the opportunity for black members of retirement funds to be
recognised for purposes of the ownership scorecard. Such apathy is in the
financial interests of neither companies’ shareholders nor funds’ members. Read full article...
Pension Funds Adjudicator
Bargain-council funds and industry-sectoral funds might have
similar objectives, but legally they are quite different. An important
difference, according to a recent determination, is that members of sectoral
funds can lodge complaints with the Adjudicator.
As the industry consolidates, more standalone funds will be
collapsed into them. Employers should be aware of their strengths and weaknesses
before taking what appears an easy decision.
King 3 is being introduced before vital aspects of King 2 have
been implemented. So far as the JSE is concerned, the requirement for reporting
in a way that stakeholders can understand is not a priority.
On costs alone, RAs of the unit-trust variety beat their insurance
counterparts hands-down. Karin MacKenzie puts her case, and the LOA responds.
Behind the ‘sub-prime’ crisis. It was seen coming, suggests the
top US publication for sponsors of retirement plans, but it’s much more
difficult to see going.
It’s known where hedge-fund managers keep their yachts. But as for