The board and management are duty bound to prevent and control any form of corruption and fraud in the collection of contributions for and the payment of benefits of the social security programme.

Corruption and fraud undermine the credibility of the programme to stakeholders, which can lead to a weakening or withdrawal of stakeholder support.

These two guidelines will help prevent and control corruption and fraud in the collection of contributions and the distribution of benefits.

The board ensures that its representatives on the boards of companies represent the interests of the social security institution. To avoid potential conflicts of interest, there is a priori alignment and compatibility between the institution’s objectives and the corporate objectives of the company.

There are many areas to be addressed in enforcing the prudent person principle in the investment of social security funds. These guidelines are addressed specifically to institutions that have representation on the boards of companies where they have significant asset holdings.

The institution ensures the separation of the investment assets that are managed by external fund managers from its own operating assets, to enhance accountability and transparency.

The board and/or management ensure the alignment of external fund managers’ incentives with the overall investment objectives of the institution.

The board and/or management use best practice to select the fund managers for the investment reserve funds of the institution.

There are many areas to be addressed in enforcing the prudent person principle in the investment of social security funds. These guidelines are addressed specifically to institutions with external fund managers.

The board and/or management ensure the professional safekeeping of the investment assets of the institution.

The board and management ensure that the valuation of the investment portfolio is in accordance with international market standards on fair market value.

The board and management have the technical expertise to determine whether investment proposals have undergone due diligence, and act upon their determination.