THURSDAY, MAY 4, 1989

2

NO GUARANTEE AGAINST FRAUDULENT MAJOR FRAUD, CORPORATE TRUSTEE MIGHT THE VICTIMS. THE

BE CAN MOREOVER, THERE BEHAVIOUR BY ANY TRUSTEE AND, IN THE EVENT OF EVEN THE FINANCIAL RESOURCES OF A BE UNABLE TO PROVIDE ADEQUATE COMFORT TO GOVERNMENT BELIEVES THAT THERE ARE ADEQUATE REMEDIES AGAINST IN THE COMMON ANY BREACH OF FIDUCIARY DUTIES BY A TRUSTEE LAW.

THE

IS A BAN ON THE ONLY RESTRICTION ON THE CHOICE OF TRUSTEE THE APPOINTMENT OF THE EMPLOYER OR HIS REPRESENTATIVE AS SOLE TRUSTEE AND IT IS SEEN AS AN ESSENTIAL SAFEGUARD AGAINST KEY THE

OF ABUSE.

THE OTHER POSSIBILITY

IT, WITHOUT

OF ASSETS AND ADEQUATE PROVISIONS, FOR EXAMPLE SEPARATION FUNDING, WOULD PROVE INEFFECTIVE.

* RESTRICTION ON SELF-INVESTMENT

INVESTMENT IN THE

EMPLOYER'S

COMPANY OR

RELATED COMPANY NET ASSETS OF IF UNCHECKED,

WILL BE LIMITED TO 10 PER CENT OF THE TOTAL THE RETIREMENT

SELF-INVESTMENT, SCHEME. COULD UNDERMINE THE PRINCIPLE OF SEPARATION OF ASSETS.

COMPANY RELATED

OR ANY DIRECTOR LOANS TO THE COMPANY OR

APPROACH IN THE UNITED WILL BE BANNED. THIS FOLLOWS THE STATES AND AUSTRALIA.

10 PER PARTICULAR

AS A FURTHER SAFEGUARD, ANY INVESTMENT OF MORE THAN CENT OF THE SCHEME ASSETS IN THE SECURITIES OF A COMPANY WILL NEED TO BE DISCLOSED TO SCHEME MEMBERS AS WOULD REPRESENT A CONSIDERABLE CONCENTRATION OF RISK.

CONSULTATIVE COMMITTEE

THIS

OF THE RETIREMENT

TO COMMITTEE" THE COMMITTEE WILL AND INFORMATION

THE TITLE OF THE "MANAGEMENT COMMITTER"

WILL SCHEME

CHANGED BE

TO "CONSULTATIVE REFLECT MORE CLEARLY ITS ADVISORY ROLE. SERVE AS A FORUM FOR THE EXCHANGE OF VIEWS BETWEEN THE TRUSTEES AND SCHEME MEMBERS.

REQUIRE THE ESTABLISHMENT IT IS CONSIDERED APPROPRIATE TO

WITH REPRESENTATION OF BOTH OF A CONSULTATIVE COMMITTEE

THE MAJORITY EMPLOYER AND EMPLOYEE INTERESTS, EXCEPT WHERE

SET UP SUCH OF THE SCHEME MEMBERS HAVE COMMITTEE.

VOTED

NOT ΤΟ

SIMPLIFIED ROLE OF THE REGISTRATION AUTHORITY

A

INSTEAD OF THE AUTHORITY ISSUING A

WILL LAY

DOWN

MODEL TRUST DEED, THE FOR LEGISLATION

MINIMUM REQUIREMENTS

REQUIREMENTS OF INCLUSION IN THE TRUST DEED AND CONTINUING REGISTRATION.

/AS A

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