Regulatory Alerts2024-09-27
FSCA Supervisory Guidance on Valuation Exemption Applications for Pension Funds
The Financial Sector Conduct Authority issued this supervisory guidance to clarify the risk-based criteria and procedural requirements for pension funds applying for exemption from statutory actuarial valuations under sections 9A and 16 of the Pension Funds Act. The regulator will assess applications on a case-by-case basis, requiring funds to demonstrate that assets equal or exceed liabilities, pension payments are fully secured by licensed insurers, and the fund operates as a purely defined contribution scheme without significant deficits or unallocated surpluses. By granting exemptions to low-risk funds, the FSCA reduces oversight burdens while ensuring member benefits remain adequately protected through compliant fund rules and audited financial statements.