SOUTH AFRICA - The South African parliament has called for tougher action on pension fund administrators who have swindled trustees out of an estimated R500m (US$67.5m).
They were accused of engaging in ‘bulking’ - where administrators consolidate credit balances of pension fund bank accounts, procuring a higher rate of interest from the bank and not yielding all of it to the funds.
Alexander Forbes escaped prosecution by agreeing to repay ZAR386m (US$52m) and donating ZAR12m (US$1.6m) to a consumer education trust, although many administrators still refuse to surrender money made out of this practice.
The government intends to overhaul the current pension funds act this year and give the Financial Services Board greater power to deal with issues of this nature.
The Environment Agency Pension Fund (EAPF) has joined a coalition of 88 investors to demand companies disclose more information on environmental impact.
The cross industry guaranteed minimum pension (GMP) equalisation working group has formed five sub-committees to each work on a key component of the guidance.
KAS Bank has launched an end-to-end cost transparency solution for defined contribution (DC) schemes to assist in the delivery of chair's statements.