Regulatory Alerts2024-08-26
FSCA Communication 29 of 2024 (RF) on Conditions for Legacy Retirement Annuity Policies
The Financial Sector Conduct Authority (FSCA) issued this consultation matrix to finalize the conditions defining legacy retirement annuity policies and their exemption from South Africa’s two-component system. The determination requires funds to demonstrate that policies entered into before 1 September 2024 are closed to new members, operate as binding contracts permitting only expressly allowed unilateral changes, and deliver benefits structured around death or retirement sums with regular bonuses. Following industry feedback from ASISA and Momentum, the FSCA accepted minor drafting adjustments to clarify funding values, transfer options, fund rule amendments, and communication requirements while retaining the core exemption framework.
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