INTEC to provide much-needed retirement fund trustee training

INTEC School of Insurance has been appointed as one of five training providers for the retirement fund trustee training initiative lead by the Insurance Sector  Education and Training Authority (INSETA).

Retirement fund trustee training was identified at the Growth and Development Summit in 2003 as a specific and urgent priority for skills development, and INSETA was tasked to address this urgent skills need.

To date, INSETA has identified the registered retirement funds and profiled the trustees with an end goal to ensure that those individuals who have been thrust into the role of trusteeship as a result of changes in legislation are empowered with the requisite information and skills to carry out their duties. INSETA has also conducted a trustee training quantification and skills survey, developed unit standards to address the skills requirements and has now appointed training providers to provide training to trustees.

"Traditionally, retirement fund trustee training has been provided by service providers, which has largely been based on the existing investment products in which the service providers have a vested interest, thus indicating a lack in independent service provision regarding training," says Nikki Wouterse, CEO of ICG Learning Solutions, a leader in South African distance and corporate learning with a total of 100 000 active learners per year.

"We are thrilled to be one of the training providers and believe we are well-equipped to train retirement fund trustees. Over the past few years, we have specialised in the financial services industry offering customised training and learnerships in the corporate market. We have also worked closely with INSETA to deliver training to individuals and small business to meet the requirements of the Financial Advisory and Intermediary Services (FAIS) Act".

"For this training initiative to succeed, trustees must take up the training offered. The majority of trustees are not aware of the responsibilities that come with this role and the knowledge required to mitigate any risks of personal liability," says Phakama Nkosi, Corporate Services Manager from INSETA.

Interesting statistics from the trustee skills survey show that there are approximately 12 750 registered pension and provident funds in South Africa and 800 umbrella funds. There are approximately 54,000 trustees in SA, with a 50/50 split of trustees being either employee or employer nominated.

It also indicated that the majority of trustees that responded are well educated and are experienced trustees. However, when asked about specific topics such as legal aspects and legislation only just over 11% said they had a good understanding. A majority said they only had an average understanding of investment management, their role in administering financial aspects of a retirement fund and retirement fund governance.

"The four unit standards that have been developed are approved by the South African Qualifications Authority (SAQA) for retirement fund trustees and once found competent, learners will receive certificates of competence and be awarded nationally recognized credits which will be uploaded on the National Learner Database," explains Mr Nkosi.

"Our infrastructure and national presence is a substantial advantage,
thanks to our backing from Educor and Naspers. The benefits of 100 years of distance learning expertise, coupled with an innovative and flexible approach ensures that we can facilitate national roll-outs," explains Wouterse.