The Insurance and Pensions Commission (Ipec), has ordered all registered pension funds to let go of Trustees who fail to get a Certificate of Proficiency (COP) in trusteeship.
- IIZ announces special exams for COP in Retirement Fund Trusteeship
- Increase in Insurance Fraud threatening viability of the Industry
- IPEC fights insurance fraud
In a circular send to the Zimbabwe Association of Pensions Funds, Ipec said that trustees without the relevant qualification should leave office or get a Certificate of Proficiency (COP) in trusteeship within the stipulated period.
“Any trustee who does not acquire the COP qualification within the period stipulated in Statutory Instrument 80 of 2017 must leave office as such be guided accordingly,” stated Ipec.
This circular was issued in terms of Section 6D of the Pensions and Provident Funds (Amendment) Regulations 80 of 2017, which set guidelines for pension fund trustees.
The Pension and Provident Funds Regulations (Amendment) Regulations SI 80 /2017 states that, “No person shall be appointed, elected or continue to act as a trustee unless he or she possesses such qualifications and additionally, or alternatively such experience or expertise as may be required for the proper administration of the fund . . . ”
All Pension Funds are required to submit Ipec copies of COPs for all their trustees within 14 days from the date of acquiring such a qualification.
Rampant cases of fraud, poor corporate governance and mismanagement of pensioners funds had forced the insurance regulator to put measures that ensure that pension funds were run professionally, in an accountable, transparent and efficient manner that protects the interest of pension funds members.
“To enhance the capacity of trustees in managing the assets of the fund for the benefit of their members and beneficiaries, the Commission made it mandatory for the trustees to obtain a Certificate of Proficiency (COP) from accredited and reputable institutions. The COP qualification equips trustees with the capacity to make decisions that are for the good of the fund.”
The directive to have the COP in trusteeship mandatory, “should not be viewed as a show of lack of confidence in the ability of trustees but as a value addition to the ability of trustees,” Ipec said.
S.I 80/2017 also sets out the conduct, qualifications, term of office and the appointment of trustees. It is also mandatory for pension funds to issue out benefit statements to fund members so that they are in the picture of what would have accrued to them.
Source: The Herald