Regulatory Alerts2018-03-31
PF Circular 92: Housing Loan Administration
The Financial Services Board issued this circular to regulate housing loan administration under the Pension Funds Act, 1956, and to prevent trustees from abusing loan provisions to prematurely access members' retirement benefits. It explicitly prohibits irregular practices such as using loans to settle unrelated debts, funding non-housing purchases, or granting loans without proper exemptions, while mandating strict adherence to prescribed interest rates, repayment schedules, and tax compliance. The document further outlines mandatory procedures for handling loan defaults, managing transfers between funds, and securing regulatory exemptions, warning that the Registrar will enforce civil actions or halt irregular practices to protect fund integrity.