Regulatory Alerts2018-03-31
Good Governance Guidelines to an Investment Policy Statement (IPS)
The Financial Services Board of South Africa issues comprehensive guidelines requiring pension fund boards to establish and annually review a written Investment Policy Statement that aligns with fiduciary duties and regulatory compliance. The document mandates that boards define essential portfolio parameters including asset allocation, diversification, liquidity needs, risk tolerance, and socially responsible investment criteria while strictly managing conflicts of interest and derivative usage. Additionally, it requires explicit voting rights policies, detailed asset manager mandates with performance monitoring, and regular transparent communication of fund performance and governance practices to beneficiaries and regulators.
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