FSCA Conduct Standard 5 of 2020 – Conditions for Smoothed Bonus Policies to Form Part of Default Investment Portfolios

1 FSCA COMMUNICATION 52 OF 2020 (RF) Publication of FSCA Conduct Standard 5 of 2020 (RF) – Conditions for Smoothed Bonus Policies to Form Part of Default Investment Portfolios

1. PURPOSE The purpose of this Communication is to inform stakeholders that today the Financial Sector Conduct Authority (FSCA) published the following documents: • FSCA Conduct Standard 5 of 2020 (RF) – Conditions for Smoothed Bonus Policies to Form Part of Default Investment Portfolios; • Statement of Need, Expected Impact and Intended Operation supporting the Conduct Standard; and • Consultation Report.
2. BACKGROUND The main objective of the Conduct Standard is to prescribe the conditions with which a smoothed bonus policy must comply in order to meet the definition of “default investment portfolio” as defined in the Regulations made in terms of section 36 of the Pension Funds Act, 1956 (Act 24 of 1956).
3. AVAILABILITY OF INFORMATION AND ENQUIRIES 3.1 The documents referred to in paragraph 1 are available on the FSCA’s website at www.fsca.co.za. 3.2 For more information regarding this Communication contact the Regulatory Framework Department of the FSCA at Roslynne.vanwyk@fsca.co.za. OLANO MAKHUBELA DIVISIONAL EXECUTIVE: RETIREMENT FUNDS SUPERVISION Date of publication: 9 October 2020