Regulatory Alerts2018-03-31
Information Circular 10 of 2008: Approval as Administrator under Section 13B
The Financial Services Board grants temporary exemptions from Section 13B administrator approval requirements until 31 March 2009 to ensure uninterrupted payments to beneficiary funds. Eligible entities must submit formal approval applications by 31 December 2008, provide an audit certificate verifying adequate operational systems, and maintain active fidelity guarantee and professional indemnity insurance from 1 January 2009. These conditional exemptions mitigate licensing committee processing delays and ensure compliance with Section 37C payment restrictions.
FINANCIAL SERVICES BOARD Rigel Park 446 Rigel Avenue South Erasmusrand Pretoria 0181 South Africa PO Box 35655 Menlo Park Pretoria 0102 South Africa Tel+27 12 428 8000 Fax +27 12 347 0221 E-mail info@fsb.w.za Toll free 0800 110443 Internet http://www.fsb.co.za (To all approved administrators, privately administered funds and insurers who underwrite pension funds) INFORMATION CIRCULAR 10 OF 2008 APPROVAL AS AN ADMINISTRATOR IN TERMS OF SECTION 13B The Pension Funds Act prescribes that only personslentities approved in terms of section 13B may conduct the administration of pension funds. Section 37C(2)(b) stipulates that pension funds may not make any payments in terms of section 37C on or after 1 January 2009 to a beneficiary fund which is not registered under the Pension Funds Act. Due to applications not submitted timeously, coupled with the fact that the next FSB Licensing Committee meeting will only be held during February 2009, consideration of section 13B licenses for those administrators wishing to administer beneficiary funds will therefore not be finalised until such time. In order to ensure a smooth introduction of beneficiary funds, the Registrar will, in terms of section 2(5)(a), consider granting, on application by the entity, exemption from the provisions of section 13B until 31 March 2009. Such exemption will be granted on condition that:
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the application for the approval in terms of section 13B is lodged on or before 31 December 2008;
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the application is accompanied by an audit certificate confirming that the systems are adequate for pension fund business; and Board Members Dr CDR Rustomjee (Chairperson) Mr AM Sithole (Deputy Chairperson) Mr BM Hawksworth Ms H Wilton Prof PJ Sutherland Ms JV Mogadime Ms T Mokgabudi Prof M Ncube Ms Z Bassa Ms M Phetla-Lekhethe Executive Officer Mr DP Tshidi
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a fidelity guarantee policy and professional indemnity policy(ies) is in place with effect from 1 January 2009. Yours faithfullv DEPUTY EXECUTIVE OFFICER AND DEPUTY REGISTRAR OF PENSION FUNDS