The Financial Planning Institute (FPI) and the Actuarial Society of South Africa (ASSA) have signed a Memorandum of Understanding (MOU) that will see these professional bodies work together to help retirement fund members select annuity options more likely to produce a sustainable retirement income.
“Two heads are always better than one. Working closely with ASSA will allow us to recognise issues that are pertinent to both organisations and to align advocacy efforts around matters such as default regulations ensuring that the best interest of the consumer is kept in mind at all times.” FPI’s CEO Lelané Bezuidenhout shared with the media.
Key components of the MOU include:
|●||A commitment by the FPI and ASSA to develop a best practice standard outlining advice points to be considered by financial planners when making recommendations to retirement fund members entering or exiting a retirement fund.|
|●||To ensure that professional members of the FPI around the country will be properly informed about how best to structure default options to ensure that the individual needs of their clients are met.|
|●||Both bodies will have representation on the relevant FPI and ASSA committees to ensure that broader input is given into curriculum and learning materials.|
“When it comes down to it, both of our professions exist to serve the South African public,” explains Bezuidenhout. “The MOU ensures that we will be supporting each other on mutual matters in our dealings with regulators, professionals and the public.”
This agreement is a very welcome development to ensure that the client’s interests come first, and the two bodies need to be commended for this initiative.