Source: Pension fund executive calls for effective governance -Newsday Zimbabwe
HIPPO Valley Pension Fund board member and lawyer Tariro Mateisanwa has emphasised the importance of effective governance and regulation in ensuring the stability and security of pension funds.
The statement follows a period in which pension stakeholders are facing challenges related to regulation and governance.
Speaking at the Zimbabwe Association of Pension Funds training programme principal officers and chairmen’s masterclass held in Harare on Wednesday, Mateisanwa said proper governance and regulation were essential for maintaining the stability and security of pension funds.
“Good governance strengthens the legitimacy and effectiveness of regulation by fostering trust and accountability,” she said.
“If one trusts their regulator, they will not doubt the regulations that they are taking out, you will not doubt their sanctions.”
Mateisanwa emphasised the need to prioritise communities, addressing these challenges head-on as essential for ensuring that the pension industry remains effective and trustworthy.
“Our aim is to foster a vibrant industry that meets the needs of our people, particularly in preventing old — age poverty,” Mateisanwa said.
“I have heard people having conversations where everyone is asking the purpose of private occupational pensions funds, and I think what makes our situation worse is the National Social Security Scheme (NSSA) and the specks that we cannot compete against.
“Whether we agree with it or not, our actions have the power to grow or destroy public confidence in our industry. Let us continue to focus on regulation and governance.”
Mateisanwa highlighted the importance of the roles of boards in advancing an environment where governance complements regulation.
“Financial stability is a vital aspect, we deposit money in banking institutions, but before doing that we make decisions. We come up with our investment policy statement first,” she said.
“We decide which asset or investment advisor we are going to employ.
That is why you find that regulation will also focus on ensuring that you have the right skills and knowledge so that you can ensure financial stability.”
The Hippo Valley Pension Fund board member added that regulations set the pace and foundation upon which governance systems were established.
“When we are establishing our governance structure we have a choice, whether we agree with the principles or we disagree we still must comply with the regulation,” she said.
Meanwhile, Mateisanwa called for regulation and governance to interact and reinforce each other.
She added that leaders should effectively do their roles accordingly.
However, she noted that the industry is seeing improved regulations which has led to enhanced governance, risk management and compliance.
“There is a general agreement that regulation has improved within our industry, which has led to enhanced governance, risk management and compliance,” Mateisanwa said.
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