Abstract
This paper discusses the challenge of the misappropriation of retirement fund assets by trustees, fund asset managers and retirement funds’ administrators. It demonstrates that retirement fund members lose substantial retirement benefits due to the illegal and unlawful conduct of those who manage and administer retirement funds. It evaluates whether the South African legislative framework offers retirement funds and their members adequate protection from activities that may compromise the delivery of the pension promise such as: mismanagement; fraudulent activities; gross negligence; and the outright looting of retirement fund assets. In particular, this paper illustrates that the law in South Africa does not deter would-be wrongdoers from acting in a manner that may compromise the benefits expected by retirement fund members when they exit their funds. It advocates the adoption of adequate preventative legislative measures that would make it difficult for anyone to act in a manner that would compromise retirement fund members' benefits in South Africa.
Highlights
The sound administration and management of retirement funds is important for retirement fund members' realisation of the pension promise made by their funds
It demonstrates that retirement fund members lose substantial retirement benefits due to the illegal and unlawful conduct of those who manage and administer retirement funds. It evaluates whether the South African legislative framework offers retirement funds and their members adequate protection from activities that may compromise the delivery of the pension promise such as: mismanagement; fraudulent activities; gross negligence; and the outright looting of retirement fund assets
This paper illustrates that the law in South Africa does not deter would-be wrongdoers from acting in a manner that may compromise the benefits expected by retirement fund members when they exit their funds
Summary
The sound administration and management of retirement funds is important for retirement fund members' realisation of the pension promise made by their funds. Loss of retirement funds' assets, with a view to determining their effectiveness This will be done in order to evaluate whether these measures are adequately placed to deter would be wrongdoers from acting in a manner that may compromise the benefits expected by retirement fund members when they exit their funds. This paper advocates the adoption of adequate preventative legislative measures that would make it difficult for anyone to act in a manner that would compromise retirement fund members' benefits in South Africa. Throughout the paper, I will make recommendations for law reform that may strengthen the regulatory framework and adequately protect the assets of retirement funds from being misappropriated
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