Discuss the question

How can investors’ funds be secured?

Now read the article. What does it say about the question above?

Pension partnerships are controlled by the State. Supervision functions of the State are directed at protecting the interests of the insured and providing the maximum safety of accumulated funds. The controlling body is the supervision body controlling pension funds (UNFE). It permits to create the pension partnership, controls the purchase or sale of shares, and terminates partnership’s activities.

Funds safety in the fund’s accounts is also guaranteed through restricted access to them – they are kept in the depositary to which the fund entrusts its assets under the concluded agreement. The depositary may be any domestic bank, which owns the funds amounting to at least 100 million Euros to keep assets of the open fund or 30 million Euros to keep fund’s assets for employees. It may be the owner of shares belonging neither to the partnership managing the fund nor to the related party; it may not provide credits or borrow from a fund the funds that exceed one per cent of the cost of fund’s assets. Officials of the partnership or entity related to it may not work at this bank.

The depositary may also be the National Depositary.

Open pension funds have information duties both with regard to the supervision body and fund members. The policy conducted by them should be transparent and easy to control.

Pension funds are liable to daily send the supervision body the reports with the following data:

– number of fund members;

– amount of funds received in their accounts;

– type and amount of investments into certain financial instruments.

Due to this fact attained a pension body receives information on current activities of the fund and gets possibility to quickly respond to any violations of the regulations.

The person that attained a pension age has no reasons to worry about his/her future even if the funds earmarked for his/her pension were managed not by a state establishment but a private fund.

Business is business. Risk is its faithful companion. But investors of private pension funds are reliably protected from frustrating surprises.

In case of fund’s bankruptcy a reserve account is the first source of payments to investors.

If this account lacks funds, own funds should be attracted for payments.

If these funds are also insufficient, the bankruptcy procedure starts and necessary funds are paid by the guarantee fund financed by pension funds altogether.

The State Treasury is the last guarantee of funds payment.

Reading tasks

A. Understanding main points. Answer these questions:

1. Whose function is to control pension partnership?

2. Why should the state control pension partnership?

3. How is funds safety guaranteed?

4. Which bank may be the depository?

5. What are the pension funds liable to?

6. How does a pension body receive information on current activities of the fund?

7. What is to be done in case of fund’s bankruptcy?

B. Understanding details. Mark these statements T (true) or F (false) according to the information in the text. Find part of the text that gives the correct information:

1. The state controls both the open pension fund and pension fund for employee.

2. UNFE has no right to terminate partnership’s activities.

3. The access to fund’s accounts is restricted.

4. 20 million Euros is enough to keep fund’s assets for employees.

5. All officials of the partnership must work at this bank.

6. Risk is a faithful companion of any business.

7. If he bankruptcy procedure starts, the necessary funds are paid by the guarantee fund.

Vocabulary tasks

A. Supply the missing members of these words families:

1. to secure

2. to invest

3. to supervise

4. to protect

5. to conclude

6. to manage

7. to relate

8. to inform

9. to report

10. to rely

B. Complete these sentences with the word from the box:

1. An employer must assume certain duties and obligations in the employee-employer ___________.

2. Employees have rights that must be __________from violation by the employer.

3. The most prestigious and highest-paying corporation are in top __________.

4. These __________ laws were adopted on grounds that women were weaker physically than men.

5. Women employees regularly _________that men are reluctant to take advantage of parental leave programs.

6. The value issue is closely _________ to the image issue.

7. The new social contract between business and society will emphasize less of the _________ that existed in earlier times.

8. The twenty-first century is more likely to be a century of small rate than large organizations as long as __________, capital, and human intelligence are free to move around the world without barriers.

Date: 2016-04-22; view: 766