How we delegate responsibilities and define limits of authority

Clarity is key to ensuring compliance in a strictly regulated industry

The extent of the delegation of responsibilities and the defined limits of authority for each sub-committee and of the Principal Officer are clearly defined in the Policy document issued and regularly reviewed by the Board of Trustees.

The operation of the Funds is the responsibility of MIFA (Pty) Ltd, which is led by the COO / CFO who reports to the Board of Trustees and its appropriate sub-committees.

The Administrator, MIFA (Pty) Ltd, (now MIRF) has some 50 employees organised in appropriate departments. Considerable emphasis is placed on the training and development of all staff as we aim to meet every requirement for equal opportunity and personal advancement.

The Principal Officer attends to all the legal requirements of the Funds. All necessary actuarial valuations are obtained and reported to the Council and the Funds concerned.  The company also submits the required annual reports on all Funds to the Financial Services Conduct Authority (FSCA) and complies with all the requirements of that body.

The Board consistently follows an investment strategy of risk diversification. Equity and fixed interest investments are accordingly contracted externally in line with the Asset Liability Model approved by the Board.

The maximum permissible level of investments per asset class has been mandated in accordance with the risk diversification strategy. 

Each of the asset management companies and their relative performances are monitored and evaluated quarterly in conjunction with our external actuaries and consultants, with half-yearly presentations received from each of the portfolio managers.  Where considered necessary for any reason, changes in the appointment of asset managers will be made.

Our mandate from the Automotive Industry

Our pension fund members have the added oversight of automotive industry bodies

Up until 2014 and for many years prior to this, MIFA (Pty) Ltd (now MIRF) were tasked by the Motor Industry Bargaining Council (MIBCO —a Bargaining Council as provided for in the Labour Relations Act, their chief role being to facilitate industrial peace and stability in the Motor Industry), by means of an exacting Service Level Agreement (SLA), to administer pension funds for various sectors of the automotive industry.

Before and up to 2014, the designate CEO of MIFA was also the Principal Officer of the funds. Since 2014 MIFA (Pty) Ltd has been deregistered as the Funds’ Administrator and the five separate funds were transformed into self-administered entities.

For reasons of better regulatory compliance and stronger financial management controls, as well as to ensure on-going improvements to the funds’ administration and performance, the Board of Trustees recently decided to fine-tune the structure once more. The plan currently being put into place will task MIFA to the lead the administration of all five funds, with Radesh Maharaj being appointed as Principal Officer of these funds.