1 / 9

BRINGING THE CHANGES: BROADENING THE VISION AND KNOWLEDGE WITH THE RETIREMENT FUND INDUSTRY

BRINGING THE CHANGES: BROADENING THE VISION AND KNOWLEDGE WITH THE RETIREMENT FUND INDUSTRY. Enos Ngutshane 19 th August 2013. TABLE OF CONTETS. Governance Framework and Environment Six Fairness outcomes to be achieved Our responsibility to Educate and Empowering members

abeni
Download Presentation

BRINGING THE CHANGES: BROADENING THE VISION AND KNOWLEDGE WITH THE RETIREMENT FUND INDUSTRY

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. BRINGING THE CHANGES: BROADENING THE VISION AND KNOWLEDGE WITH THE RETIREMENT FUND INDUSTRY Enos Ngutshane 19th August 2013

  2. TABLE OF CONTETS • Governance Framework and Environment • Six Fairness outcomes to be achieved • Our responsibility to Educate and Empowering members • Empowering Trustee Boards: Trustee Education and Training Policy • Conclusion

  3. Governance Framework and Environment • The governance framework in which we operate is demanding. • Exercising good governance benefits not only the greater good of the members as a whole, but also protects the interests of each individual member that we serve. • Types of fund governance structures we are required to know. • The FSB’s Practice Note PF130: Good governance of Retirement Funds and King III Code on Corporate Governance. • There is an intention by the FSB to issue a directive incorporating the two. • Requirements are commonly regarded as Basic Fund Governance principles.

  4. Governance Framework and Environment (cont) • Types of Fund Governance Structures: • Code of Responsible Investing in South Africa (‘CRISA’): • Aim to promote sound governance regarding investment practices by providing guidance to Investors and Retirement Funds. • The application of the code is voluntary. • Just like King III Code it works on “Apply or explain” basis. • Some of its requirements are incorporated into Regulation 28. • CRISA is largely theoretical but captures the essence of responsible Investment Practices. • Fund trustees should be familiar with the responsible investment aspects of CRISA.

  5. Governance Framework and Environment (cont) • The types of Fund Governance Structures: • The FSB’s Treating Customers Fairly (‘TCF’) • A Safe Financial Sector to Serve South Africa Better • Financial stability • Consumer protection and market conduct • Expanding access through financial inclusion • Combating financial crime • The plan hinges on the adoption of Twin Peaks of financial services regulation: • South African Reserve Bank in charge of prudential matters • Financial Services Board overseeing market conduct • TCF regime is a key component of FSB’s enhanced market conduct mandate.

  6. SIX FAIRNESS OUTCOMES TO BE ACHIEVED • Fairness treatment of customers is central to services provider’s culture • Products are designed to meet the needs of identified customers. • Customers are give clear information and kept informed all the way. • Where customers receive advice that advice must be suitable and take account of their circumstances. • Customers are provided with products that preform and are of an acceptable standard. • Customers do not face unreasonable post-sale barriers to change product, switch provider, submit a claim or make a complaint. • FSB has targeted January 2014 for the legislative implementation of TCF.

  7. Our Responsibility to Educate and Empower Members • Since the publication of PF86, FSB has been encouraging fund trustees to pay more attention to information communicated to members. • Via PF86 it issued guidance in terms of benefit statements with minimum information to be communicated annually. • FSB stepped up again and published PF130: Good Governance of Retirement Funds in 2007. • The thinking was carried through with publication of revised Regulation 28. • Just as PF130, Regulation 28 requires that members be provided with education in order to make informed decisions. • The SANLAM Benchmark Survey 2013 came up with interesting stats on member communication. • Trustees who think that an annual benefit statement is enough are in for a shock.

  8. Empowering Trustee Boards: Trustee Education and Training • Fund trustees will not be in a position to empower their members if they are not up to speed with governance, investments and operations. • As trustees we have the same fiduciary responsibility to our members. • In the case where half of the Board is empowered member interest cannot be sufficiently represented or protected. • Funds should look at developing training policy for their trustees which should be carefully thought out and regularly assessed for effectiveness . • Basic fiduciary duties and legal training as well as investment training should be provided by the fund to all new trustees. • All trustees must be kept abreast and educated on legal and industry changes. • Trustees who are empowered are an imperative to the formation of a strong and effective Board.

  9. END OF PRESENTATION THANK YOU FOR LISTENING

More Related