The Chief Executive Officer of Negotiated Benefits Trust Company Limited (NBC Ghana Trust), Mr William Asiedu Yeboah, has called for transparency in corporate and individual trustee administration following the impact of the recent banking reforms undertaken by the Bank of Ghana.
Mr Yeboah explained that, “The trustees (corporate and individual) licensed are required to provide regular reports on all aspects of the fund administration and investment activities. Regular audits are required in addition to robust data management systems. Annual audits must be provided on the funds as well as the corporate entity.”
Commenting on the impact of the banking reforms on pension funds, the NBC Ghana Trust CEO stressed that the board of trustees for each fund must be actively engaged in the administration of the fund.
Mr Yeboah stated that some of the key factors to consider in the current situation include: conflict of interest in activities, related parties and subsidiary structures; terms of delegated responsibilities, specialised or discretionary mandates for the management services; capacity to manage the data, monitor performance of service providers and capacity to identify risks to members, governance, and the quality of the Trustee board.
Role of NPRA
He further stated that bulking of investment funds with treasury funds is a major market risk and needs to be resolved by the custodians.
According to him, the National Pensions Regulatory Authority (NPRA) forms the foundation upon which the Trustees and service providers operate. Efforts by the regulator have been directed at minimising risks of the pension trustee.
In addition, “the pension assets are at risk if this is not decoupled from employee compensations. The laws in Ghana rank employee compensation as a priority creditor in the situation of liquidation. One of the proposed resolutions in the current financial turbulence places pensions assets according to the banking laws about eighth in the priority of creditors from the receiver.”
Retirement and Pensions
Commenting on planning towards retirement, the NBC Ghana Trust CEO stated that over the last decade, changes in population have had an impact on the number of people considered old in society.
BY TIMES REPORTER
