Mandatory pension funds: What are your thoughts?
in Banking, Insurance & Loans ·
Question:
What happens if the custodian bank goes under?
Kokoska mentioned that if a fund starts performing poorly, the assets are protected by the custodian bank and can be transferred to a different fund (if I understood that correctly). So, basically, it’s a "safety first" situation—I should at least get back whatever amount I put in. Of course, depending on whether the fund grows or shrinks, there's potential for extra profit or loss. Correct me if I'm wrong. :-)
I didn't know anything about these funds until recently when I got an official notice from REGOS in the mail stating they were assigning me to a specific OMF because I hadn't picked one myself within the three-month window. Now I'm doing my homework.
What happens if the custodian bank goes under?
Kokoska mentioned that if a fund starts performing poorly, the assets are protected by the custodian bank and can be transferred to a different fund (if I understood that correctly). So, basically, it’s a "safety first" situation—I should at least get back whatever amount I put in. Of course, depending on whether the fund grows or shrinks, there's potential for extra profit or loss. Correct me if I'm wrong. :-)
I didn't know anything about these funds until recently when I got an official notice from REGOS in the mail stating they were assigning me to a specific OMF because I hadn't picked one myself within the three-month window. Now I'm doing my homework.