Contents - Principal Officers Association

Report from our ChairpersonCreating an organization that nurtures the professional development ofPrincipal Officers has long been top of our Agenda. It has become vitalfor us to groom our Principal Officers to be able to deal competentlywith the complex issues they now have to face in the retirementfunds industry. More recently we have focused on developingthe POA professionally by introducing a Code of Conduct for allmembers and by continuing with our project of professionalizationof the occupation of Principal Officer. We want the Principal Officerto be recognized as a top-notch professional who is an expert ingovernance, risk management, legal issues and administration. Thisendeavour will raise his or her profile, and enhance their status aspotential leadership material.The period under review has been an exciting one.Our CommitteesOur Board Committees have been hard at work to enhance the valueoffering of the POA. We have managed to streamline the performanceof the Committees by developing clear mandates for each of them.The Marketing Committee has developed some excellent seminar topicsand it has arranged for top speakers to address our members on topicalissues. The Governance & Technical Committee was instrumental inensuring that the tutorial training material on the Pension Funds Actmet the appropriate standards. The Professionalization Committeehas worked tirelessly to get us to a place where we are much closerto registering the occupation of Principal Officer. And the Finance &Audit Committee has ensured that we spend our money sensibly andin such a way so as to achieve maximum return of value.A word on professionalizationIt is becoming clearer every year that the role of the Principal Officerand the trustee ought to be a full-time professional one. Retirementfunds that are to be run effectively simply demand too much in termsof time and expertise for their management to be undertaken on apart-time basis. In addition, the fact that many Principal Officers andtrustees are not remunerated for performing their important functionsis contrary to the spirit of good governance and accountability,which demands willing, full-time commitment in managing members’retirement monies – or so it may be argued.3 4The POA wishes to get involved in the competency development of Principal Officers toprepare them for the continuous professional development requirements that will inevitablyfollow professionalization. We believe that attendance and participation in POA sessions,such as the seminars and Winter Conference, will ensure that our members are better offas professional Principal Officers.POA EventsThe 2010 Winter Conference was a great success where we unpacked the theme “YourProfession – Your Integrity”. Our Imbasa Yegolide Awards gala dinner was held successfullyfor the second time in a row at a prestigious venue in Sandton. And for the first time wetook our Summer Tutorials to Cape Town and Durban in the second half of 2010 (whichwas in addition to the national Tutorials that were held in February 2010). This meansthat the Tutorials were on offer in the home provinces of many of our members and otherstakeholders.Our Corporate SponsorsWithout the sterling commitment and generous support of our sponsors we would notbe able to function as an organization. I would like to extend my sincere thanks to eachCorporate Sponsor for their willingness to support us, not only in terms of financialassistance but also for their wholehearted enthusiasm for our different projects. Thank youfor your commitment to the role of the Principal Officer and your faith in the POA brand.Financial MattersThe POA was not unaffected by the financial crisis, and prudence and vigilance wererequired from everybody within the sector. You will notice that the Association incurred anet loss of R386 420 during the year ending February 2010. Strict budgetary control wasexercised, and the Board of Directors implemented the following measures in order toaddress the insolvent position:• additional sponsorships were obtained for the next financial year;• more income generating projects have been undertaken;• membership fees were increased; and• projects were avoided that could potentially realise deficits.I am pleased to report that the POA finances have recovered during the 2010/2011 financialyear and that we are solvent going forward.Matters ArisingAt our last AGM it was agreed that the POA Board would appoint Directors to fill thevacancies which had arisen as a result of the resignations of, amongst others, Mr BongaMokoena and Mr Peter Zibi. Mr Eddie Erasmus and Ms Desiree Meyer have also resignedafter that decision. Appointments to these vacancies have to be confirmed at this year’sAGM.Your Profession - Your 1 IntegrityYour Profession - Your Integrity