ALLAN GREENBLO: The big debate over fiduciary duty
The cop-out answer is simply to comply with the regulation 28 guidelines for prudential investment. But it’s not so simple
There’s a debate that trustees might want as much as they might want a dose of Covid-19. Like the virus, which mutates through defences to contain it, so also there’s the concept of fiduciary duty that mutates with circumstance in its application to retirement funds.
The spreading infection in the SA economy is growth-choking debt. This makes unavoidable the debate over fiduciary duty, both at the level of individual funds and at the Financial Sector Conduct Authority (FSCA) as the regulator, in that retirement funds are virtually alone in their capacity to help relieve the national debt’s worst consequences. But this isn’t in the job description of fund trustees...
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