According to the leading market in South Africa: A multi-billion Rand industry, in South Africa there are up to 3500 registered funds with over 11 000 000 members and investments exceeding R2000-billion. Responsible for billions of Rands and effectively people’s lives, it’s for good reason that the Pension Funds Act places onerous responsibilities on trustees, and they may be held personally liable if their fund suffers a loss as a result of their own actions or failure to act. Effectively this puts a trustee’s entire personal estate at risk and if a judgement goes against them, they could forfeit all their attachable assets. All too often however, the appointed board of trustees does not have the knowledge and expertise to handle the various complexities of the pension fund and third-party service providers are instated to carry out the business of the fund. Not a fail-safe approach to Pension Fund management, losses may be caused by the appointed third-party making it especially important for trustees to ensure that providers possess adequate PI and FG cover, and do not limit their liability in service level agreements.
The fund is Protected against: Errors and omissions; Theft and fraud and Third party computer crime. The policy also includes Professional Indemnity cover.