Welcome to dreamland. So pervasive has corruption supposedly become in the retirement fund industry that registrar Dube Tshidi has considered it necessary to issue a directive that will prevent it. The directive bears the formidable title “Prohibition on the Acceptance of Gratification”. So inadequate are existing provisions of the Pension Funds Act (for trustees to avoid conflicts of interests and to act independently) and the general code of conduct for authorised financial services providers under the Financial Advisory & Intermediary Services Act (which defines the “financial interest” that a provider can legitimately offer) seen to be that these acts are judged defective for implementation. So confident is the Financial Sector Control Authority (previously Financial Services Board) in the power of new regulation that it is considered that funds’ service providers and trustees will be frightened into compliance more than they fear the ability of the authority to enforce existing...
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