PENSION FUNDS ACT REGULATION 28: NEW DRAFT STANDARD OUT FOR COMMENT

PENSION FUNDS ACT REGULATION 28: NEW DRAFT STANDARD OUT FOR COMMENT

• 14 November 2023
• Financial Sector
• SA Legal Academy

The Financial Sector Conduct Authority has called for input by 31 January 2024 on a draft standard intended to the introduce holistic quarterly reporting under Regulation 28 of the Pension Funds Act, 1956. This is the FSCA’s second set of holistic quarterly reporting standard proposals, the first having been released in November 2022 for comment. It should be read with a draft determination on the holistic reporting format envisaged.

According to a communication on what is now being proposed:

• Regulation 28 ‘protects retirement fund member savings by limiting the extent to which funds may invest in a particular asset or in particular asset classes
• amendments to Regulation 28 in force since 3 January 2023 require additional reporting in relation to infrastructure assets, and
• stakeholder input on the November 2022 proposals prompted the FSCA to confine the new quarterly reporting standard to issues of non-compliance with Regulation 28 (known as exception reporting)

The process of finalising the resulting exception reporting standard is now nearing completion. This is noting that, once in force, the new standard will at least align quarterly reporting with the amended Regulation 28.

However, the FSCA remains convinced that a holistic approach to quarterly reporting should eventually replace the exception approach – which is the intention, possibly in 2025.

• communication
• draft standard
• draft format determination
• statement of need
• comments template (draft standard)
• comments template (draft format determination)

Published by SA Legal Academy Policy Watch

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