RETIREMENT FUNDS: SUBSIDIARY LEGISLATION
INDEX TO SUBSIDIARY LEGISLATION
(11th April, 2017)
ARRANGEMENT OF REGULATIONS
REGULATION
PART I
Preliminary
1. Citation
2. Interpretation
PART II
Licensing Requirements
3. Application for retirement fund licence
4. Rules of fund
5. Amendment of rules of fund
6. Special provision relating to preservation fund
7. Special provision relating to beneficiary fund
8. Special provision relating to external fund
9. Special provision relating to multi-employer and individual retirement fund
10. Application for licence as retirement fund administrator
PART III
Governance of Funds
11. Minimum standard of board member
12. Duties of board
13. Exemption from requirement that fund members have right to elect board member
14. Assessment of board of fund
15. Code of conduct for board of fund
16. Principal officer of licensed fund
17. Investment policy
18. Communication policy
19. Risk management policy
PART IV
Financial Reports
20. Financial statements by funds
21. Report on financial condition of fund
22. Financial statements by fund administrator
23. Investigation and report by actuary
24. Consideration of methods to make fund financially sound
25. Actuarial surplus rules
PART V
Miscellaneous Provisions Relating to Funds
26. Payment of contributions
27. Discretion of board in benefits in excess of amount defined in rules
28. Payment of pension
29. Payment of lump sum death benefits
30. Commutation of pension
31. Disability rules
PART VI
Amalgamations and Transfers
32. Transfers to or from other funds other than involuntary transfer
33. Certificate for amalgamation or transfer
34. Conditions for amalgamation or transfer
35. Provisions relating to preservation funds
36. Payment from beneficiary funds
37. Information required from beneficiaries
38. Information for beneficiaries
PART VII
Termination and Winding-Up
39. Termination of fund or partial termination of a multi-employer fund
40. Winding-up of fund
41. Revocation of licence of fund administrator
42. Withdrawal of licence of fund administrator
PART VIII
General
43. Appointment of service provider
44. Provision of information to stakeholders
45. Records
46. Inspection of documents
SCHEDULES
S.I. 38, 2017,
S.I. 50, 2020,
S.I. 67, 2021.
PART I
Preliminary
These Regulations may be cited as the Retirement Funds Regulations.
In these Regulations unless the context otherwise requires—
"administration services" means the affairs of the fund that are administered by the fund in accordance with the provisions of the Retirement Funds Act, regulations, scheme trust deed, rules and any other legal documents related to the fund and instrument of appointment of the administrator;
"defined benefit fund" means a fund other than a defined contribution fund;
"defined contribution basis of funding" means with reference to the manner in which the retirement benefit is determined, means that each member receives a retirement benefit which is not guaranteed and which has a value equal to the balance on the member’s retirement in that member’s individual account;
"defined contribution fund" means a fund in which—
(a) each member receives a retirement benefit which is not guaranteed and which has a value equal to the balance on the member’s retirement in that member’s individual account;
(b) any pension payable on retirement must be fully secured either through an annuity policy owned by the fund or through an annuity policy purchased in the name of the member, after which purchase the fund has no obligation towards the member; and
(c) no reserve accounts are maintained that will cause the Regulatory Authority to require actuarial valuation of the fund;
"fund return" means—
(a) in relation to the assets of a fund, any income received or accrued and capital gains and losses realised or unrealised, earned on the assets of the fund, net of expenses and tax charges, associated with the acquisition, holding or disposal of assets; or
(b) in relation to any portion of the assets of a fund if the assets are separately identifiable, any income received or accrued and capital gains and losses realised or unrealised, earned on those assets, net of expenses and tax charges, associated with the acquisition, holding or disposal of those assets:
Provided that where an asset is a policy of insurance, fund return means the growth rate or bonus rate as declared on that policy by the insurer, whether positive, negative or nil;
"liquidator" means the liquidator appointed by the Board of a fund, or authorised representative and whose appointment has been approved by the Regulatory Authority in terms of section 29 of the Act;
"member’s individual account" means, in relation to a defined contribution fund, an account to which the following amounts are credited—
(a) any contributions paid by, or on behalf of the member, less such expenses as the board shall determine;
(b) any transfer value received from another fund;
(c) any amount which represents the member’s opening balance on conversion of the fund from a defined benefit to a defined contribution basis of funding, as determined by the actuary;
(d) any shares of surplus, approved by the board;
(e) fund return; and
(f) such interest declared by the board from time to time and which is debited with any benefit payable, or any transfer of the balance in the account after payment of the benefit due to the member into a reserve account on exit of the member:
Provided that where such an accounting structure is not maintained by the fund, such amount as shall approximate what would have applied if such an accounting structure had been maintained;
"pensionable income" means the income of a member of a pension fund or provident fund on which the benefits payable from the fund are to be calculated, whether referred to as salary, pensionable salary, pensionable income or any similar term considered by the Regulatory Authority to be suitable;
"retirement annuity fund" means a pension fund—
(a) established for the sole purpose of providing life annuities for the members of the fund or annuities for the dependants or nominees of deceased members;
(b) whose rules satisfy the requirements of such a fund as defined in the Income Tax Act (Cap. 52:01) and in which no employer-employee relationship is required before a person is eligible to become a member;
"sub-fund" means a fund established by a participating employer who contributes to a multi-employer fund and has been admitted to participate in the multi-employer fund under the multi-employer fund rules; and
"trustee" means a board member of a fund.
PART II
Licensing Requirements
3. Application for retirement fund licence
An application for a retirement fund licence, shall be made to the Regulatory Authority in Form A set out in Schedule 1, and shall be accompanied by the following—
(a) three copies of the rules of the fund;
(b) an application letter from the employer, stating that it wishes to start a retirement fund;
(c) a statement from the principal officer setting out the method of funding;
(d) three year projection of the fund growth in terms of membership, assets including projected interest earnings;
(e) proof of consent from members;
(f) license fee set out in Schedule 2; and
(g) any other information that the Regulatory Authority may deem necessary in determining the application.
(1) The rules of a fund shall provide for the appointment of—
(a) board members and their remuneration if applicable, as well as their duties, dismissal and their powers;
(b) the principal officer including compliance with fit and proper requirements as determined under regulation 16(4)(a), and his or her remuneration and dismissal;
(c) the management committee in the case of a multi-employer fund and board member of the fund, its remuneration, duties and dismissal thereof;
(d) service providers of the fund, their payment, duties and termination;
(e) a valuator including the terms and conditions of their appointment;
(f) an auditor and administrator which shall be consistent with provisions of section 19 of the Act, and who shall have registered offices in Botswana; and
(g) an actuary and an investment advisor.
(2) Notwithstanding anything contained in the provisions of this regulation, the rules shall make reference to the following—
(a) the full name of the fund;
(b) a reference to any name changes that the fund might have undergone;
(c) the date of commencement of the fund and the date of the first and subsequent financial year end;
(d) the physical address of the licensed office of the fund;
(e) the objects of the fund;
(f) the type of fund;
(g) a list of definitions, in alphabetical order, defining the terms which are frequently used in the rules;
(h) the power of the board to elect and remove a board member;
(i) the powers of investment of the retirement fund and the duty of the board of the fund to adopt, implement and communicate to members an investment policy appropriate to the nature and the circumstances of the fund;
(j) that the investment strategy of a defined benefit fund shall be approved by the employer;
(k) provisions and conditions regarding actuarial investigations if the fund is subject to the provisions of section 25 of the Act, or alternatively the intention to seek exemption from the provision of section 25 of the Act; and
(l) the manner in which contracts and other documents binding the fund shall be executed.
(3) The rules of a fund shall if it is a multi-employer retirement fund provide for—
(a) a specific indication as to whether the fund is a multi-employer fund or is established for the participation of employees of a principal employer and its subsidiaries;
(b) the name of the sponsor and its registered address;
(c) the opening of a bank account in the name of the fund unless the fund operates wholly through a policy of insurance; and
(d) the types of accounts that the fund may operate internally to facilitate its administration.
(4) The rules shall provide for a detailed exposition of the eligibility conditions for joining the fund and the circumstances under which membership shall cease, with specific reference to the following—
(a) the class or classes of person who are, or may, in due course, become eligible to join the fund;
(b) whether membership shall be compulsory or not, as well as any period within which current employees may exercise a choice, if applicable;
(c) the conditions of membership relating to deferred pensioners if any; and
(d) mutual transfer arrangements with any other fund if any:
Provided that the rules shall not contain any provision, the effect of which would be to render admission to membership subject to exercise of discretion by any person.
(5) Without derogating from the provisions of this regulation, the rules shall also specify—
(a) the definition of pensionable income applicable in relation to each category of member which shall include the basic income, salary or wage payable to the member, and may include the whole or part of any regular contractual commission or bonus payable to the member and of any other allowance considered by the employer to be suitable for inclusion;
(b) the rate of contributions which shall be expressed as a percentage of a member's pensionable income or, where it is not related to income, set out in a scale;
(c) if rules require a participating employer to make compulsory contributions to the fund, specify the basis of calculating contributions;
(d) where a participating employer deducts the contributions of a member from his or her remuneration, the employer shall pay to the fund that contribution, and the corresponding contribution referred to in regulation 26, within seven days from the end of the calendar month in respect of which the contributions are payable;
(e) that if a participating employer fails to make the payment required in terms of regulation 26, the principal officer shall report the failure to the Regulatory Authority within seven days;
(f) for the acceptance of sums without a maximum which are transferred to the fund by the principal officer on the instructions or at the request of a member from another fund:
Provided that a recipient fund shall not be required to comply with this subregulation if the fund is a fund the membership of which is not a condition of employment with a participating employer;
(g) that a member may make additional voluntary contributions to the fund, in which case the maximum amount payable in each period shall be specified and it shall be stated whether the continuation of such voluntary contributions may be revoked by the member;
(h) if pensionable income is reduced, the member may elect to contribute to the fund at an increased rate so that his or her contributions are not less than they would have been if his or her pensionable income had not been reduced:
Provided that where the rules require a participating employer to make compulsory contributions the rules shall provide that the consent of the member’s employer shall be required for the payment of these increased contributions;
(i) that a participating employer may make a special contribution to the fund in order to restore the fund to a financially sound condition;
(j) the acceptance of sums without a maximum which are transferred to the fund by another fund on the instructions of or at the request of a member:
Provided that—
(a) the member is a former member of that other fund; and
(b) acquired a right to such sums as a benefit on the cessation of membership of that other fund;
(c) a fund shall not be required to comply with this paragraph if membership of the fund is not a condition or benefit of the terms of employment of the member with a participating employer;
(k) the normal retirement age for each category of member;
(l) the nature, extent and method of calculation of every benefit granted by the fund, as well as the payment thereof to any member or other person entitled thereto, in respect of—
(i) normal retirement, early retirement in good health, early retirement in ill-health, death before retirement, resignation, dismissal, retrenchment and redundancy:
Provided that individual retirement funds need not make provision for resignation, dismissal, retrenchment and redundancy, and
(ii) if applicable, late retirement, deferred benefits and death after retirement:
Provided that—
(aa) the rules shall not provide for differential rates of benefit within a single category,
(bb) the board may increase a benefit defined in the rules subject to the consent of the employer and the Regulatory Authority,
(cc) the rules shall not permit a member to participate in only part of the benefits unless he or she is subject to a medical restriction imposed in terms of the rules,
(dd) provision shall be included for the preservation of benefits on resignation, dismissal, retrenchment and redundancy, at the request of the member, through transfer to a preservation fund or another fund which the member has joined, and
(ee) on written application by the fund, the Regulatory Authority may authorise any variation of the benefits due to or in respect of a member not elsewhere provided for in this subregulation; and
(m) the protection of the fund and assets against any manner of insurable risk and financial loss arising out of any negligence, default or wilful default on the part of any of its officers, trustees, administrator, manager or custodian either by way of a guarantee from the sponsor or by way of insurance of such amount as the trustees may deem adequate.
(6) The rules may be altered and shall specify—
(a) manner of altering, rescinding or adding to any rules;
(b) the manner in which any dispute between the fund and its members or between the fund and any other person whose claim is derived from a member shall be settled;
(c) the safe custody of title deeds or any other securities belonging to or held by the fund, in particular the use of a custodian independent of the fund and its sponsor to hold such title deeds and other securities;
(d) subject to the provisions of section 28 of the Act, the manner and circumstances under which the fund shall be terminated or dissolved, with specific reference to—
(i) total or partial dissolution,
(ii) the appointment of a liquidator, to be approved by the Regulatory Authority,
(iii) any transfers of participating employers to, or amalgamation of the fund with any other fund, and
(iv) the position of persons whose membership ceased during the 12 months period immediately prior to the date of liquidation;
(e) the transfer or amalgamation of the business of the fund, or any part thereof, with that of any other fund or person:
Provided that no provision may be so made for the transfer of such benefits from a pension fund to a provident fund or the receipt of such benefits by a provident fund from a pension fund;
(f) the manner in which unclaimed benefits shall be dealt with upon the—
(i) death of a member including a deferred pensioner,
(ii) liquidation of the fund, and
(iii) withdrawal of a member from the fund;
(g) approval by the employer where the board exercises its discretion in such a way as to impose a financial obligation on the employer.
(h) that the principal officer may advise the Regulatory Authority where the employer refuses with its consent to pay a contribution rate recommended by the actuary to restore the fund to, or maintain the fund in, a financially sound condition; and
(i) that a member who is over the age of 55 years shall not make a withdrawal benefit from a fund on resignation, dismissal or retrenchment from employment.
(1) The rules of the fund shall state the procedure and reasons for an amendment or repeal of the rules.
(2) No amendment or repeal of the rules shall come into effect until the Regulatory Authority approves the amendment or repeal of such rules.
6. Special provision relating to preservation fund
The rules of the preservation fund shall comply with section 12 of the Act and regulation 32.
7. Special provision relating to beneficiary fund
The Regulatory Authority shall not licence a beneficiary fund unless it is satisfied that it meets the requirements as set out in section 11 of the Act.
8. Special provision relating to external fund
(1) The Regulatory Authority shall not licence an external fund to operate in Botswana unless it is satisfied that—
(a) it meets the requirements as set out in section 10 of the Act; and
(b) the rules of the fund provide a similar level of member protection to that provided under the Laws of Botswana.
(2) An application for licensing of an external fund shall be accompanied by the following—
(a) information—
(i) the full name of the fund,
(ii) the full name and address of the fund administrator,
(iii) the full name and address of any supervisory authority to which the fund is subject in the jurisdiction in which the fund is established,
(iv) the full name and address of the custodian,
(v) the jurisdiction in which the fund is operated,
(vi) the total membership of the fund divided in terms of the number of members resident in Botswana and the rest of the members,
(vii) the full names and addresses of a representative or a principal officer and a representative of the fund members in Botswana, and
(viii) the physical address where facilities will be maintained to enable the following—
(aa) members to obtain benefit statements and payment of pension benefits,
(bb) the rules of the fund and the annual and half yearly reports to be examined free of charge and copies to be obtained if required, and
(cc) complaints to be made for forwarding to the head office of the fund; and
(b) documentation—
(i) application form,
(ii) a statement or certificate from the supervisory authority of the fund, confirming that it has been authorised,
(iii) a certified copy of the rules of fund and any amendments thereto,
(iv) the audited financial statements of the previous three years,
(v) exemption letter from the actuary where applicable,
(vi) the investment policy of the fund,
(vii) a compliance letter from the supervisory authority of the fund, and
(viii) a copy of any other document affecting the rights of the members in the fund.
(3) Documentation submitted to the Regulatory Authority shall be in English.
(4) Where an external fund which existed at the date of coming into operation of the Act has admitted members resident in Botswana, such fund shall have six months from the date of operation of these Regulation within which to obtain a licence, failing which those members resident in Botswana shall cease to be members of that fund.
9. Special provision relating to multi-employer and individual retirement fund
(1) A person shall not carry on the business as a multi-employer retirement fund, or an individual retirement fund without a licence issued by the Regulatory Authority.
(2) The Regulatory Authority may, on application made by a multi-employer or individual retirement fund, issue a license to carry on business as a multi-employer or individual retirement fund.
(3) The Regulatory Authority shall satisfy itself that—
(a) the sponsor of a multi-employer fund appoints an administrator approved by the Regulatory Authority and is in compliance with section 19 of the Act; and
(b) obligations of the employer are fully set out in the rules that provide defined benefits and employer contribution.
(4) A multi-employer fund shall be licensed in terms of regulation 3.
(5) No employer shall join a multi-employer fund prior to licensing and approval of such fund by the Regulatory Authority.
(6) An employer that wishes to apply for a licence to join a multi-employer fund shall submit to the Regulatory Authority an application for licensing in Form B set out in the Schedule 1, and shall be accompanied by the following—
(a) a covering letter, specifying the name of the fund administrator;
(b) a licensing fee as determined by the Regulatory Authority;
(c) proof of consent of members;
(d) cost to the members and employers;
(e) where applicable, a charter between the board and the management committee;
(f) a management committee shall consist of a minimum of three members; and
(g) three copies, to be read in conjunction with the main rules of the multi-employer fund, duly signed by a representative of the participating employer and the principal officer of the multi-employer fund.
(7) The rules applicable to a sub-fund shall provide for the following—
(a) full name of the participating employer, including reference to any prior changes of the name;
(b) date of commencement of participation of the employer in the fund;
(c) a list of definitions, defining the terms which are frequently used in the rules, and which bear a special connotation;
(d) registered physical address of the participating employer;
(e) eligibility for membership;
(f) contribution rates of both employer and employees;
(g) retirement age encompassing normal, early and late retirement;
(h) benefits disability and death;
(i) mode of communication to members; and
(j) any other information of importance specific to the sub-fund.
10. Application for licence as retirement fund administrator
(1) An application for a retirement fund administrator’s licence, or the renewal thereof, shall be made to the Regulatory Authority in Form C set out in Schedule 1, and shall be accompanied by the following documents—
(a) contact details of parties assisting with the application;
(b) particulars of the directors and senior managers;
(c) questionnaire for directors and senior managers;
(d) particulars of service providers;
(e) questionnaires for service providers;
(f) risk management plan;
(g) business plan which shall contain, amongst others, the following—
(i) business strategy and objectives of the fund administrator,
(ii) the services to be rendered,
(iii) financial projection, and
(iv) implementation plan;
(h) certified copies of incorporation documents;
(i) structural chart of the company group, where applicable;
(j) organisational chart of the fund administrator;
(k) sample contract and service level agreement to be used in respect of a client pension or provident fund;
(l) copy of the fund administrator’s professional indemnity insurance policy;
(m) copy of report by an insurance professional advising on the amount of professional indemnity cover to be held;
(n) overview of administration system, controls and reporting capabilities of the administrator;
(o) declaration from the auditors that the systems and controls have been investigated and have been found to be appropriate for a fund administrator or a qualified declaration that identifies the issues that the fund administrator may have to address;
(p) disaster recovery plan;
(q) the latest three years audited accounts and management letters of the applicant company, where applicable;
(r) ownership structure of the applicant in columnar format showing the name and profession, business of proposed investors, address, percentage shareholding, qualifications and resume of a shareholder;
(s) licensing fee as set out in Schedule 2;
(t) board resolution permitting the institution to undertake fund administration services;
(u) application for approval of board members and their qualifications; and
(v) attestation that the applicant or its subscribers, directors or officers have never mismanaged, either fully or partially, any fund.
(2) An organisation wishing to be licensed to carry on the business of a retirement fund administrator shall satisfy the following requirements, and shall submit evidence that it—
(a) is a limited liability company duly incorporated under the Companies Act (Cap. 42:01);
(b) shall not engage in any business other than the management of retirement funds;
(c) has the professional and technical capacity to manage retirement funds and administer retirement benefits;
(d) has satisfied all requirements determined by the Regulatory Authority, other relevant laws or any such additional requirements or conditions as may be determined from time to time by the Regulatory Authority; and
(e) possesses appropriate information and communication technology that could adequately cater for online real-time transactions in addition to keeping proper accounting records.
(3) Where a company is seeking to be licensed as a fund administrator, the minimum paid up share capital including unimpaired reserves of the company shall be P500 000 or such value as the Regulatory Authority may from time to time determine.
(4) A company rendering administration services to a fund shall at all times have in its senior management at least four persons who are academically and professionally qualified in matters relating to administration of retirement funds, and at least one person in any of the following disciplines—
(a) insurance;
(b) law;
(c) accounting;
(d) actuarial science;
(e) economics;
(f) banking;
(g) finance; or
(h) investment of scheme funds.
PART III
Governance of Funds
11. Minimum standard of board member
(1) Any person who wishes to become a board member of a retirement fund shall apply to the Regulatory Authority.
(2) An applicant referred to in subregulation (1) shall—
(a) understand the rules of the fund, and his or her duties as a board member and shall be aware of applicable financial services laws and any other relevant legislation that may affect his or her actions as a board member; and
(b) appreciate his or her duties in relation to the annual financial statements, the returns required by the Regulatory Authority, and the communication to fund members.
(3) The Regulatory Authority may prescribe the level of skill and training that a board member shall attain to be deemed fit and proper.
(4) The Regulatory Authority shall give the existing board members 12 months from the date of the commencement of these Regulations to attain the necessary skills.
(5) No person may be appointed or elected as a board member if that person—
(a) is below 18 years of age;
(b) is mentally incompetent or otherwise incapable of performing the duties required;
(c) is disqualified from being a director in terms of a court order issued under the Companies Act;
(d) is an unrehabilitated insolvent;
(e) has been removed from an office of trust on account of misconduct; or
(f) has been convicted and sentenced either to imprisonment without the option of a fine or to a fine exceeding P100 for any one of the following offences—
(i) theft,
(ii) fraud,
(iii) forgery or uttering a forged document,
(iv) perjury,
(v) any offence involving dishonesty, or
(vii) any offence in connection with the promotion, formation or management of a company.
(6) A person who is appointed as an independent specialist trustee shall—
(a) not be an employee, agent, director or shareholder of any service provider;
(b) have extensive experience in the retirement fund industry;
(c) have the experience of a trustee not limited to retirement funds but shall have a general understanding of the industry;
(d) have good communication skills; and
(e) provide general retirement fund expertise to the board.
(7) A principal officer shall design and implement an appropriate training programme for the board members after assessing their training needs.
(1) The board—
(a) may delegate its functions, if it elects to do so, to a person or committee, subject to any conditions as the board may decide;
(b) shall ensure the delegation is in writing and is in line with the system of delegation laid out in the rules of the fund;
(c) shall act in accordance with the rules that require the board to ratify any decision or action taken by a delegate or committee where such rules exist;
(d) is not relieved of its functions once delegated and remains responsible for any decisions taken by the delegate or committee; and
(e) may in writing, withdraw the delegation at any time.
(2) A trustee shall—
(a) inform the Regulatory Authority, in writing, of any information relating to the affairs of the fund, which in the trustee’s opinion may seriously prejudice the financial soundness of the fund or its members as soon as the trustee becomes aware of any such information;
(b) act independently and exercise powers in a manner that is impartial and not influenced by inappropriate considerations;
(c) ensure that the fund is financially sound, responsibly managed and governed in accordance with its rules and the Act;
(d) ensure that adequate and appropriate information is communicated to the members and beneficiaries of the fund informing them of their rights, duties and benefits; and
(e) submit a report where he or she resigns voluntarily or where his or her term of office expires.
13. Exemption from requirement that fund members have right to elect board member
(1) A multi-employer fund, preservation fund or retirement annuity fund may apply to the Regulatory Authority to be granted an exemption from having fund members elect board members for the fund.
(2) A multi-employer fund, preservation fund or retirement annuity fund which applies for exemption under subregulation (1) shall have at least three board members and one independent board member.
(3) The quorum for a meeting shall be three members including the independent member.
(4) The independent board member shall not be an employee of a retirement fund, the administrator or the sponsor of the fund.
(5) The independent board member shall not provide any other services to the fund or the employer or sponsor.
(6) Any variation from exemptions shall be stipulated in writing when the relevant rules or rule amendments are submitted to the Regulatory Authority for registration.
(7) The applicant shall satisfy the Regulatory Authority that—
(a) the standard of record keeping, payment of benefits and general fund administration shall not be affected by the exemption;
(b) the fund shall have sufficient expertise to manage and invest its assets; and
(c) the fund shall have sufficient internal controls.
(8) The Regulatory Authority shall issue an exemption on a case by case basis and may call for such further information as it deems fit, having regard to the particular circumstances of the fund.
(9) Exemption granted by the Regulatory Authority shall be for a period not exceeding three years on condition that should the conditions upon which the fund was exempted change materially, the fund shall disclose these changes to the Regulatory Authority within seven days of the change.
(10) The fund may apply for an extension of the exemption three months before the date of expiration.
14. Assessment of board of fund
(1) The board of a fund shall have an assessment carried out annually, by an independent expert to monitor its performance, processes and procedures and report his or her findings to the Regulatory Authority.
(2) The assessment shall cover the following—
(a) the composition of the board in terms of its compliance with the rules and the Act, and the skills and experience of the board members;
(b) adequacy of the governance structures for the fund;
(c) effectiveness of board meetings in dealing with the most important issues;
(d) ability of the board to interact freely, express their own opinions, and operate effectively as a team;
(e) board packs provide adequate and timeous information;
(f) board minutes are accurate and produced on time;
(g) the chairperson conducts his or her mandate effectively;
(h) financial control is adequate, including budgeting and monitoring variances across the year;
(i) board members engage in continuing education on trusteeship and changes in the industry;
(j) board member understands his or her duties, and the code of conduct;
(k) any conflict of interest is avoided, or, where unavoidable, is declared and managed;
(l) proper records are kept;
(m) proper internal control system is employed;
(n) adequate and appropriate information is communicated to stakeholders;
(o) contributions are collected timeously and contributions in arrears are reported to the Regulatory Authority;
(p) the board obtains expert advice on matters where it lacks sufficient expertise;
(q) the board ensures that rules, operations and administration of the fund comply with legislation;
(r) the board ensures that adequate fidelity insurance cover is maintained;
(s) the board ensures that investment is maintained in accordance with a written investment policy statement that is communicated to stakeholders;
(t) the board ensures that an appropriate risk management strategy is implemented; and
(u) the board ensures that effective strategic planning is carried out.
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