Bow­man Gil­fil­lan

Law firm

Finweek English Edition - - COVER - MEM­BER’S DU­TIES AS BOARD MEM­BERS IN RE­LA­TION TO IN­VEST­MENTS

in­volved in the re­tire­ment funds in which they par­tic­i­pate in var­i­ous ways and in vary­ing de­grees. With the move­ment to­wards en­sur­ing that mem­bers are ed­u­cated about their rights and re­spon­si­bil­i­ties as fund mem­bers, one of the is­sues that have come to the fore is how fund mem­bers can in­flu­ence the in­vest­ment de­ci­sion of the funds in which they par­tic­i­pate. As a di­rect con­se­quence of this, the is­sue that also arises is what re­course a mem- ber has in the event that a mem­ber is un­happy with, or con­cerned about, an in­vest­ment de­ci­sion, par­tic­u­larly if that in­vest­ment de­ci­sion or the in­vest­ment pol­icy has re­sulted in poor re­turns for the fund.

Here we fo­cus on oc­cu­pa­tional funds. These are funds in which mem­bers par­tic­i­pate by virtue of be­ing em­ploy­ees of the par­tic­i­pat­ing em­ployer in the fund. Fund mem­ber­ship is usu­ally com­pul­sory and mem­bers can only exit the fund on

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