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 Pensions Administration Standards Association's Margaret Snowdon won the coveted Pensions Woman of the Year award. She tells Stephanie Baxter about lessons she has learned along the way.
Defined benefit (DB) schemes are set to shorn themselves of over £300bn of liabilities between 2019 and 2021 as they continue to mature, Mercer predicts.
This week's top stories include the Competition and Markets Authority issuing its final report for the investigation into investment consultants, and The Pensions Regulator launching its first fraud prosecution.
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