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Boards were not properly constituted as the rules of the funds required

The Financial Services Board (FSB) has taken regulatory action by appointing a board of trustees for the Electrical Contracting Industry Pension Fund and the Electrical Contracting Industry Provident Fund.

The FSB's actions came after investigations in terms of Section 25 of the Pension Funds Act were conducted on the abovementioned funds revealed that the boards were not properly constituted as the rules of the funds required.

In terms of Section 26(2) of the Pension Funds Act, the Registrar then gave the funds 90 days to establish a board of management in terms of their rules.

Deputy Registrar of Pension Funds at the FSB, Jurgen Boyd (Pictured right) said the funds were not compliant.

"No proper and validly constituted boards were appointed by the funds during the 90 day period.  As such, and in order to ensure the proper functioning of the funds in the best interest of the members, the Registrar is appointing a new board of management for each of the funds."

The FSB has appointed Bertie van Wyk to serve as independent trustee and chairperson of the new board of management on both funds. 

Karen Mackenzie has been appointed as the other independent trustee and vice-chairman of both funds.

"A further two trustees will be appointed from the ranks of the employer association and union. The boards appointed by the Registrar will hold office until 31 January 2011," Boyd added.

Earlier this year the FSB had called for individuals with the relevant knowledge and experience of pension funds to serve on a panel of independent trustees for possible appointment to retirement funds where regulatory action was necessary. Van Wyk and Mackenzie were drawn from that panel.