PRUDENCE IS PROCESS, NOT PERFORMANCE – LEGAL ISSUES ASSOCIATED WITH RETIREMENT FUND INVESTMENTS

Friday, June 15, 2012
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Our governing statute, the Pension Funds Act, says very little about the duties of trustees in relation to investments. In essence, it says that a board of trustees must direct, control and oversee the operations of the fund and take all reasonable steps to ensure that the interests of the members in terms of the rules of the fund are protected at all times .The Financial Institutions (Protection of Funds) Act puts things a little more strongly in that it requires all persons who invest, keep in safe custody, control or administer fund assets to observe the utmost good faith and exercise proper care and diligence in doing so.

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