Anthony Williams
The IRFA’s representation of the retirement industry in negotiations with government authorities and the Financial Services Board (FSB), including commenting on legislation and tax matters affecting retirement funds, is one of the institute’s most valuable services to members, according to chief executive and principal officer at the SABC Pension Fund, Anthony Williams.
He says IRFA plays a vital role in the South African pension fund industry.
“For example, the IRFA’s annual conference is a source of up-to-date Industry information and relevant guidelines, including changes in legislation, interaction with the FSB and relevant topics which ensure that trustees, principal officers, administrators, actuaries, consultants, brokers, insurers and other role players are kept up to date with industry issues,” says Williams.
Natalie Phillips, head of SA Institutional at Investec Asset Management, agrees: “The IRFA has become much more active in providing forums and ensuring the quality of speakers provide both food for thought and knowledge that can be practically applied.
“The IRFA ensures there is high quality engagement that all stakeholders are exposed to. The quality of learning and education presentations they have provided for trustees over the last two or three years has been excellent.
Phillips says the IRFA’s educating and training of trustees is crucial.
“The IRFA’s role in trustee development is critical at the moment with investments becoming more complex, particularly with the need to look at alternatives in order to outperform inflation; the legislative and regulatory environment changing; and the economic growth expectations for the country being revised down, which all feeds through to pension and provident fund members.
“It is absolutely critical that both members and trustees understand the economic environment and market conditions,” says Phillips.
Williams reports that the SABC Pension Fund chairman and trustees have found the IRFA’s annual conference and training forums to be an extremely valuable resource in the execution of their fiduciary duties.
As an example he points to a research study commissioned in 2016 by the IRFA, co-sponsored by the SABC Pension Fund and supported in terms of survey administration by the FSB, which was presented at IRFA’s annual conference.
“The study yielded important findings regarding the industry’s rating of itself in terms of pension and provident fund governance and stakeholder engagement.
“The study also, in its research methodology, helped in defining perceived best practices in the industry in terms of investment practices, financial reporting and trustee induction and development.
“Such information, as well as the trustee toolkit developed as a result of this, is of invaluable benefit to industry members in terms of raising the bar,” says Williams.
Phillips believes the IRFA has a critical role to play in drawing a cross-section of representation from the retirement fund industry at its forums — from asset owners to asset gatherers and other service providers — to ensure that responsible engagement and training takes place.
Williams agrees: “The networking role that the IRFA’s annual conference plays is vital, as key players in the industry get to meet and interrelate, and service providers to the pension fund arena have the opportunity to interact with other role players.
“The IRFA promotes a sense of belonging in an industry where pension funds, although strictly regulated, would operate in silos, unaware of the standards obtained by their peers,” he adds.
Williams says IRFA’s annual Best Practices Awards is an opportunity for funds to benchmark their progress and innovation with that of other players in the field.
“Over the years the awards have gained popularity among pension funds, and every year there is an increase in the numbers and the standard of entries. Through showcasing the achievements of the many diverse funds, other funds are able to improve their offering to their members and retirees.
“The initiative of the IRFA Awards programme has spurred some funds on to entering, and winning, awards in the international arena.”
Williams says the IRFA further promotes excellence in the industry by virtue of its various sub-committees, which tackle issues such as investments; research and marketing; and legal and technical issues.
“Belonging to the IRFA promotes the passion that most stakeholders feel in executing their duties of governance, especially the advantages of being able to benchmark oneself against one’s peers in an effort to achieve a degree of distinction, as well as identifying the areas where improvement is needed, in an environment conducive to professional excellence,” says Williams.