The FSCA has extended the deadlines for the completion of the first 11 modules of its new Trustee Training Toolkit (TTK) and launched the second set of modules.
The new TTK, which replaces the initial TTK, must be completed by all members of retirement fund boards irrespective of whether they completed the initial (old) TTK.
The first phase of the new TTK was launched in September last year.
According to the Authority, the TTK provides retirement fund board members (trustees) with a better understanding of their roles and will help them to perform their fiduciary duties more effectively and efficiently.
Communication 25 of 2023 (RF) provided the deadlines for trustees to complete the first 11 of the 22 modules. Trustees appointed on or before 26 September 2023 were given six months from 27 September 2023 to complete the first 11 modules. Trustees appointed or elected after 26 September 2023 had to complete the first 11 modules within six months of their appointment or election.
Effectively, trustees who came into office before 26 September 2023 were given until the end of March this year to complete the first set of modules. But this is no longer the case.
The FSCA has become aware of the technical problems experienced by a significant number of board members in accessing the eLearning portal for completing the TTK, the Authority said in a communication published on 28 March. It has therefore decided to extend the deadlines for completing the first phase of the TTK.
In terms of RF Notice 5 of 2024, trustees who were appointed on or before 28 March 2024 must complete the first 11 modules by 30 September 2024.
Board members appointed or elected after 28 March 2024 must complete the first 11 modules within six months from the date of appointment or election.
Six months to finish the training
The FSCA’s Communication 11 of 2024 (RF) also announced that the second and final set of modules has been launched. The deadlines for completing modules 12 to 22 are stated in RF Notice 6 of 2024:
- Trustees who were appointed on or before 28 March 2024 must complete the second of modules within six months from the date of publication of Notice 6, which is 28 March 2024.
- Board members appointed or elected after 28 March 2024 must complete modules 12 to 22 within six months from the date of appointment or election.
Taken together, Notices 5 and 6 mean that trustees who came into office before 28 March this year have until the end of September to complete all 22 modules.
Those who are appointed or elected after 28 March have six months from the date of their appointment or election to complete the entire course.
The modules are available at https://elearning.fsca.co.za/home
The FSCA hosted workshops in September 2022 to introduce the new Toolkit. Recordings of the workshops are available on the FSCA’s YouTube channel. Click on the Playlists tab where you will find the “Trustee Training Toolkit Workshops 2022” playlist.
Compliance will be monitored
A statement released by the FSCA quoted deputy commissioner Astrid Ludin as saying: “With over R5 trillion in assets under management, South Africa’s retirement funds industry ranks among the world’s largest and plays a pivotal role not only in our economy but also in numerous other emerging markets. It is therefore imperative that retirement funds are well managed and that trustees have the necessary knowledge and skills to perform their fiduciary duties more effectively and efficiently.
“As the FSCA views trustees as integral to the success of the retirement funds industry, we believe that it is our duty to support trustees in their quest to develop the necessary knowledge and skills to fulfil their roles and responsibilities. This is why we developed and have now redeveloped the Trustee Toolkit.”
The statement said the TTK will improve trustee’s ability to assess and evaluate the quality of advice given to them by external experts. To this end, the modules include default regulations, statutory returns, section 14 transfers, liquidations, deductions for damages, and reserve accounts.
The Authority emphasised that completion of the TTK is compulsory for all trustees. It will monitor completion of the Toolkit and take regulatory action where there is a lack of compliance.
Section 7A(3) of the Pension Funds Act requires trustees to attain prescribed levels of skills and training within six months after being appointed or elected and to retain these levels throughout their term of appointment.
Conduct Standard 4 of 2020 prescribes the minimum skills and training requirements for trustees. It also prescribes the TTK as the official minimum training requirement for all trustees of retirement funds. In accordance with the conduct standard, a board member must attain the certification of the TTK within six months from the date of appointment or election to the board.
Questions about the TTK should be sent to Mr Tando Mbono at Tando.Mbono@fsca.co.za.
