Life is about to get tougher for small pension funds
Stricter rules for the sector will hit smaller funds harder
The Financial Services Board will try to nudge small, employer-sponsored funds into umbrella funds — but if that fails, the regulator will consider "a much more blunt instrument", Olano Makhubela, the deputy executive registrar for retirement funds at the FSB, told the recent Pension Lawyers Association conference in Cape Town. National Treasury has instructed the FSB to reduce the more than 1,650 active retirement funds to less than 200. Makhubela said it may mean policy makers would have to prescribe the number of members and assets under management that funds needed to have to be viable. He also said the FSB was looking to improving its monitoring of retirement funds by requesting funds to submit monthly cash flow statements that could provide an early warning system by enabling the FSB to detect problematic changes at an early stage. The FSB is also considering asking Parliament to cut the six-month time period that funds are allowed to submit returns to three months, allowing t...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.