Learning beyond the Trustee Toolkit

Toni Cantin, Head of the ICTS Academy

While fulfilling the role of a trustee indicates a certain level of responsibility and involvement, it does not automatically equate to a comprehensive understanding of all the important legislation and financial and investment concepts. The FSCA’s Trustee Toolkit is a valuable, and compulsory, resource that provides foundational knowledge and guidance. However, trustees need to go beyond this foundation and continually educate themselves on best practices, regulatory updates and advanced governance strategies.

Being a trustee is a role that comes with great responsibility (and fiduciary liability), requiring a broad understanding of various subjects to ensure effective governance and management. While the Trustee Toolkit is a great resource, it is only one piece of the educational puzzle. Trustees must equip themselves with a comprehensive knowledge base, including other related training. This not only enhances their ability to perform their duties but also ensures the long-term success and stability of the fund they oversee.

Understanding investments is crucial for trustees, as they are responsible for overseeing the investment of fund assets. This area focuses on topics such as asset allocation, risk management, performance measurement, and the impact of macro economic factors on investments. Knowledge of these subjects enables trustees to make informed decisions that align with the fund’s objectives and risk tolerance. Moreover, staying updated on the latest investment trends and strategies helps trustees navigate the ever-changing financial landscape.

Good risk management is the cornerstone of effective trusteeship. Trustees must implement robust governance structures and practices to ensure transparency, accountability, and effective decision-making. This involves focusing on critical topics such as the role of the trustee board, ethical considerations, and conflict management. Additionally, understanding risk management is crucial for identifying, assessing, and mitigating potential risks that could impact the scheme. Trustees must develop and implement comprehensive risk management frameworks to safeguard the fund’s assets and interests.

One key area often overlooked is the often tricky process of distributing retirement fund death benefits. Trustees must be well-versed in the legal and ethical considerations surrounding the distribution of benefits to ensure fairness and compliance with their fund’s rules and legislation. This knowledge helps in addressing sensitive situations with the necessary compassion and legal acumen.

Another crucial aspect is understanding the broader economic and regulatory environment. Trustees must stay informed about legislative changes, economic trends, and global financial developments that could impact their fund’s performance and compliance. Regular updates and continuous learning in these areas are essential for initiative-taking and effective trusteeship.

While the Trustee Toolkit provides a solid foundation, effective trusteeship requires a broader and deeper understanding of various subjects and the practical application thereof. Trustees should pursue additional courses related to their role. This approach to education ensures that trustees can effectively manage their funds, protect the interests of members, and navigate the complexities of the retirement landscape. By embracing continuous learning and professional development, trustees can enhance their skills, knowledge, and effectiveness, contributing to the long-term success and stability of the funds they oversee, and the effective management of their service providers.

ENDS