Editorials
First Word
The term “broad-based black economic
empowerment” can become a misnomer.
The codes are confusing and anomalous,
even to the extent that the most broadly
based non-governmental organisations don’t
know whether they’re included or excluded. Read full article...
Victim of Success
Alexander Forbes, a giant in the retirement-fund industry, is the
target of government and consumers for practices that allegedly earn it
“secret profits”. While the outcome of an independent review
is awaited, it’s possible that neither Alexander Forbes nor the industry
will be quite the same again. There seems a lot for which they will have to answer.Read full article...
Letters
Surplus apportionment;
Chinese puzzle; pensions outsourcing.
Actuaries
South Africa’s first black actuary has strong ideas on
why there are so few black actuaries. It’s a situation he,
with other professionals, is setting out to remedy. And
they need to succeed.
Development
Ever heard of Ditikani? If not, you’re about to. It’s intending
to launch a R50 million bond that will test pension funds’
commitment to corporate social investment.
This & That
Long-term insurance ombud reports; Adjudicator rules on
a trustee’s personal liability; Futuregrowth takes its ethics
public; AICC deserves better support; Waiting for Ghavalas.
Empowerment
An influential business voice has entered the debate on
retirement funds’ recognition for BEE ownership. The
submission has been carefully drawn, and Trade & Industry
Minister Mandisi Mphahlwa is listening.
Narrative reporting
Ordinary people should be able to understand what
companies are obliged to disclose. But typically the
disclosures are so technical they’re intelligible only to
experts. In the UK and Europe, regulators and companies
are trying to get it right. Their reasoning resonates in South
Africa.
Trends
Old Mutual’s survey on retirement funds does not entirely
show service providers and trustees in the best light. One of
the biggest problems relates to communication.
Governance
A cross-section of asset managers is
interviewed on their corporate ethics in
dealing with conflicts and clients. Standards
are high, but should be seen to be high.
State of the industry
There are three possible scenarios.
Dion George shares conclusions from his doctoral thesis on retirement funds.
Gravy
Rest assured that National Treasury will produce its second
discussion document on fund reform, someday.
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