18 Dec Oversight role of trustees
As the Conduct Standard for pension fund administration companies takes root, we examine the oversight role expected of trustees.
Irrespective of whether a pension fund is outsourced to a specialist pension fund administration company, the trustee must still fulfil the following oversight:
- Verify that their administrator is FSCA-approved under section 13B.
- Ensure administration agreements are compliant and protect the fund’s interests.
- Give consent to any outsourcing arrangements and verify that subcontractors are also approved administrators.
- Monitor the administrator’s performance and review regular compliance reports.
- Understand the complaints process and track how issues are resolved.
- Confirm data ownership rights and timely access to member records.
- Review conflict-of-interest policies and ensure they are implemented.
- Check insurance and liquidity to confirm ongoing solvency and risk cover.
While outsourcing pension fund administration is a convenient and effective administration solution, the outsourcing trustee remains responsible for oversight. Salt EB encourages a close association and offers trustee training and support.
salteb.co.za
Salt Employee Benefits is South Africa’s leading independent pension fund administration company.
https://www.moonstone.co.za/new-era-for-fund-administration-unpacking-conduct-standard-2/