Recently, we discussed the Financial Sector Conduct Authority. In this edition, we consider the Prudential Authority. Both of these regulators were introduced as part of the Twin Peaks model of financial sector regulation to regulate financial institutions (which includes retirement funds, administrators and insurers) under the Financial Sector Regulation Act.
Information Circulars 2, 3 and 4 of 2018 have been released in relation to: A. Fund financial statementsB. Increased foreign portfolio investment limitsC. Effective date for the acceptance of gratification directive
In a recent letter to stakeholders, Abel Sithole, in his capacity as Commissioner of the newly established Financial Sector Conduct Authority (FSCA), announced that the Financial Services Board (FSB) had been “transformed” into the FSCA as of 1 April 2018.
The first Budget speech under the presidency of Cyril Ramaphosa was delivered on 21 February 2018 by Minister of Finance Malusi Gigaba. The 2018 National Budget directs spending to the most pressing national priorities namely educating the youth; protecting the vulnerable and investing in enablers of inclusive growth. Budget 2018 charts a path out of economic stagnation, anticipating a steady increase in economic growth which will create a path to prosperity for South Africans and improve our nation's finances over time.
On 1 December 2017, the amended Financial Services Sector Code (Code) was issued by the Minister of Trade and Industry. The Code has been issued in terms of the Broad-Based Black Economic Empowerment (B-BBEE) Act and makes reference to retirement funds and service providers to retirement funds.
The circular seeks to clarify how to report or disclose information that a Board member, principal officer and deputy principal officer, auditor, valuator and administrator of a retirement fund consider necessary to bring to the attention of the Registrar during their term of appointment or following termination of their appointments.
In the matter of T v University of KwaZulu-Natal Pension Fund and ABSA Consultants & Actuaries, the Pension Funds Adjudicator dealt with the extent of investigations to be done by trustees in the distribution of a death benefit.
Effective management of complaints by funds is a vital component of treating customers fairly. The effective management of complaints enables trustees to see if they are meeting their responsibilities as set out in the Pension Funds Act; they can also determine if the benefits provided by the fund and the quality of the services provided by its service providers are appropriate.
The president has signed the Financial Sector Regulation Act (the Act) into law, introducing the twin peaks regulatory framework to South Africa. The effective date(s) of the Act are not yet known. Different effective dates will apply to different sections of the Act. While the Act comes into force over a period of time, there is bound to be overlap between the Act and the Pension Funds Act.