Regulatory Alerts2020-06-08
FSCA Communication 30 of 2020 – Conduct Standard on Living Annuity Conditions in an Annuity Strategy
The Financial Sector Conduct Authority (FSCA) has published a draft Conduct Standard prescribing compliance conditions for living annuities integrated into retirement fund annuity strategies. The standard addresses sustainability risks such as excessive draw-down rates, poor investment returns, longevity exposure, and high fees by mandating that living annuities meet prescribed drawdown levels under Regulation 39(3)(a). Stakeholders are invited to submit written comments using the provided template on or before 31 July 2020 via the FSCA website.
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