Standard of Care of Administrator and Agents

(1) An administrator shall and in accordance with the prudent person rule– (a) exercise the care, diligence and skill in the administration of a pension plan and in the management and investment of the pension fund that a person of ordinary prudence would exercise in dealing with the property of another; and (b) use in the administration of a pension plan and in the management and investment of a pension fund all relevant knowledge and skill that, by reason of the administrator’s profession, business or calling, he ought to possess. (2) An administrator or, where the administrator is a board of trustees, a member of the board, shall not knowingly permit the administrator’s private interests to conflict with his duties and powers in respect of a pension fund. 25 (3) Where it is reasonable and in the interests of the members of a plan so to do, an administrator may employ one or more agents to carry out any act required to be done in the administration of the pension plan and in the management and investment of the pension fund. (4) Every actuary, accountant or other professional person who has been engaged by an administrator to provide professional services with respect to the administration, management and investment of a pension plan or pension fund, shall be deemed to be an agent of the administrator. (5) An administrator who employs an agent shall– (a) select the agent; (b) be satisfied of the agent’s suitability to perform the acts for which the agent is employed; and (c) supervise the agent as far as practicable and reasonable. (6) An agent of an administrator is subject to the standards that apply to the administrator under sub-sections (1) and (2).