Regulatory Alerts2023-05-11
FSCA Communication 15 of 2023 on Late Payment Interest Calculation for Pension Funds
The Financial Sector Conduct Authority (FSCA) clarifies that pension funds must calculate late payment interest on contributions from the eighth day following the expiration of the statutory seven-day transmission period. This guidance resolves industry confusion by confirming that the repeal of Regulation 33 aligns with Section 13A(7) of the Pension Funds Act, making interest accrual commence on the day after the seventh day rather than the first of the following month. The FSCA determined that existing legislation is unambiguous and does not require a new binding ruling, effectively mandating consistent application of this calculation method across all retirement funds.
Share