Driving member behaviour towards a movement for change at Retirement Fund BEE level?
The Financial Sector Transformation Council (FSTC) has requested that the top 100 South African Retirement Funds voluntarily submit a Retirement Funds ScoreCard detailing the level of transformation at Management Control of the fund and the level of transformation of procured service providers to the Fund.
It is well known that most Retirement Fund did not respond to this voluntary call.
The FSTC may well see this hesitancy to disclose as a sign of poor levels of transformation, alternatively it could just be that there is so much else on the board of Trustees agenda, in the absence of compulsion, the matter will not make its way up the long agenda lists of most funds.
Either way, compulsion seems the most likely route to get a response. But to what end you may ask, perhaps here the idea of information-is-power is the way that the FSTC may drive member behaviour. We all know how apathetic most Retirement Fund members are towards matters of Retirement Funding.
However, if the BEE level of the members retirement fund is clearly articulated; like on the annual benefit statement next to their share of fund value… There may be chance that members may take the opportunity to raise questions about their Retirement Fund and its level of transformation.
Perhaps the FSTC has identified that with the right information presented in plain language, a movement of member activism could be sparked and thus drive the cobwebs of apathy from general members engagement with Retirement Fund Trustees and in particular their representatives.
We are always excited to hear from you.
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