Legislation: Pension fund board member training standard mooted

Comment is sought by 4 July on a draft financial sector conduct standard prescribing the minimum skills and training requirements of pension fund board members. It is envisaged that these could be acquired after being appointed and that six months would be allowed for a new board member not already certified as Financial Sector Conduct Authority ‘trustee toolkit’ compliant to undergo the necessary training. According to the accompanying supporting statement, it is also proposed that the completion of any new modules added to the existing programme should be mandatory, reports Pam Saxby for Legalbrief Policy Watch.

The draft conduct standard is underpinned by an acknowledgement of the fundamental importance of ‘relevant’ retirement fund ‘knowledge or expertise’ if board members are to perform their fiduciary duties and ‘contribute positively’ to a fund’s management and governance. There have apparently been instances when ‘regulatory action’ and other interventions have been necessary to remove board members among other things failing to ‘objectively assess financial statements and proposals made by service providers’. Input should be made using a template posing questions on the draft standard’s likely impact.

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