Any prudent business will wish to satisfy itself that it is not taking any untoward risk in joining a mutual and paying annual contributions. There is a custodian appointed by the members to act in the best interest of the members. We protect our members’ contributions in a number of ways. First, each member has their own protected cell.
This means that liabilities of other members cannot affect the funds in the member’s cell.
Secondly, funds in a protected cell are subject to an agreed signatory requirement. Funds can only be moved out of the cell with signatures of relevant and previously agreed upon parties, such as directors of the mutual, the custodian and the member.
Thirdly, the investment policy of a cell will be discussed with the member in order to satisfy the member that sufficient caution is being exercised.