TonyRemas

19 August 2013

FSLGAB - IMPACT ON TRUSTEES

BILL

In general

• Protection of savings

• It places a new obligations and duties on retirement fund

trustees

FSLGAB – IMPACT ON TRUSTEES

SECTION 7A – BOARD OF THE FUND

• Composition – comply with the rules

• Vacancies – filled within 30 days

• Trustees – prescribed skills & training

6 months from appointment

Retain the level of skill throughout

• Removal of Board – other than expiry of term

21 days report perceived reasons for the removal

Report to the Registrar

• Whistle blowing – Trustee must report matter to the Registrar

FSLGAB – IMPACT ON TRUSTEES

SECTION C – OBJECT OF THE FUND

• Board members

Act independently

Comply with prescribed requirements

FSLGAB- IMPACT ON TRUSTEES

SECTION C – DUITES OF THE BOARD

• Registrar – may precribe

Disclosure to members

Communincation to members

• Board (if rules allow) – delegate its duties to

Another person

Group of persons

Committee of the Board

Presentation name

NEW – SECTION F

Provision – potential exemption of a Board member from joint &

several liability

In the event of litigation against the Fund

Where the Board member is found to have acted

Independently

Honestly

Reasonably in the discharge of his/her duties

FSLGAB – IMPACT ON TRUSTEES

All these additions add to the wide range of fund matters a

Trustee is required to have a working knowledge and

understanding of the following:

FSLGAB- IMPACT ON TRUSTEES

• Statutory & common law duties of retirement fund Trustees

• Law of persons

• Law of contract

• Good governance guidelines – Circular PF 130

Summarises statute &

Common law

• Prudential investment guidelines as per Regulation 28

• Accounting knowledge – sign off audited financials.

• Whistle blowing on material matters complex – require

guidelines on what is material