|
The Code
of Conduct for Members of a Pension Scheme Governing Body,
designed to help such individuals manage their ethical responsibilities,
has been launched by the CFA Institute.
The CFA says that funding pension schemes and securing the financial
future of pension participants and beneficiaries is a growing global
challenge, as longevity and ageing populations become critical issues
in many countries. The body believes that the role of the pension
scheme trustee in managing private and institutional pension fund
assets therefore assumes greater importance.
Set out in the Code are ten fundamental ethical responsibilities
for individuals who sit on the governing bodies of pension funds
worldwide, as a kind of global platform. Although the Code is voluntary
in terms of adoption, the CFA Institute Centre is encouraging pension
plans to adopt it to establish an ethical framework for governing
board members and to demonstrate their commitment to serving the
best interests of participants and beneficiaries.
Jon Stokes, director of standards of practice at the CFA Institute
Centre for Financial market Integrity, said the conduct of those
who govern pension schemes “significantly impacts the lives
of millions of people around the world who are dependent on pensions
for their retirement income.”
Stokes told Pensions Age that the process took about a
year and a half from suggestion to launch on 24 June in the Netherlands.
Questioned on the potential uptake of the Code, seeing as it is
voluntary, Stokes said: “it will be easier to introduce the
Code to the Emerging Markets as there is not much currently in place
to change” in terms of guidance on conduct.
The Code will be available online and hard copies are available
on request. Director of the CFA Institute, Steve Wellard, acknowledged
that the Code may take some time to get going, and that sponsors
will be necessary to push its progression. However, he also said
that one of the huge attractions is that it is “available
to both participants and the layman”.
-
Pensions Age June 2008
|
