Draft Conduct Standard – Pension contribution recovery process tightened

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Towards the end of last week, the Financial Sector Conduct Authority (FSCA) published a draft Conduct Standard and supporting documents on the Requirements related to the payment of pension fund contributions. According to the accompanying statement the draft Conduct Standard is intended to replace Regulation 33 (with necessary drafting improvements) by providing for the following matters that are currently provided for in Regulation 33:

● The minimum information to be furnished to a fund by an employer with regards to payments of contributions made by an employer in terms of section 13A of the Act;
● Notification and reporting obligations on the board of a fund, principal officer or other authorised person where there is a contravention of or non-compliance with sections 13A(2)(b) or 13A(3)(a) of the Act by an employer; and
● the rate of interest payable on arrear contributions.

In addition, the draft Conduct Standard also proposes to:

● set a standard format in which a fund must inform a participating employer of its duties and obligations under section 13A of the Act;
● set out the format in which a request by a fund to an employer, as referred to in section 13A(9) of the Act, must be made;
● prescribe the manner and format of reporting by principal officers of pension funds or any other authorised persons as referred to in section 13A(6) of the Act to the board of a fund regarding compliance with, or non-compliance with, the provisions of sections 13A(2)(b) and 13A(3)(a) of the Act by an employer;
● impose standard notification and reporting obligations on the board of a fund where there is a contravention of or non-compliance with sections 13A(2)(b) or 13A(3)(a) of the Act by an employer;
● set requirements for a board a fund, and participating employers, when the board of a fund outsources the collection of outstanding contributions to attorneys.

Interested parties are invited to submit comments on the draft Conduct Standard by 31 July 2020 to FSCA.RFDStandards@fsca.co.za.

Draft Conduct Standard – Pension contribution recovery process tightened

Posted on by

Towards the end of last week, the Financial Sector Conduct Authority (FSCA) published a draft Conduct Standard and supporting documents on the Requirements related to the payment of pension fund contributions. According to the accompanying statement the draft Conduct Standard is intended to replace Regulation 33 (with necessary drafting improvements) by providing for the following matters that are currently provided for in Regulation 33:

● The minimum information to be furnished to a fund by an employer with regards to payments of contributions made by an employer in terms of section 13A of the Act;
● Notification and reporting obligations on the board of a fund, principal officer or other authorised person where there is a contravention of or non-compliance with sections 13A(2)(b) or 13A(3)(a) of the Act by an employer; and
● the rate of interest payable on arrear contributions.

In addition, the draft Conduct Standard also proposes to:

● set a standard format in which a fund must inform a participating employer of its duties and obligations under section 13A of the Act;
● set out the format in which a request by a fund to an employer, as referred to in section 13A(9) of the Act, must be made;
● prescribe the manner and format of reporting by principal officers of pension funds or any other authorised persons as referred to in section 13A(6) of the Act to the board of a fund regarding compliance with, or non-compliance with, the provisions of sections 13A(2)(b) and 13A(3)(a) of the Act by an employer;
● impose standard notification and reporting obligations on the board of a fund where there is a contravention of or non-compliance with sections 13A(2)(b) or 13A(3)(a) of the Act by an employer;
● set requirements for a board a fund, and participating employers, when the board of a fund outsources the collection of outstanding contributions to attorneys.

Interested parties are invited to submit comments on the draft Conduct Standard by 31 July 2020 to FSCA.RFDStandards@fsca.co.za.