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2019-03-20

Information Circular No 2 of 2019: Applications for Exemption from or Extension to Comply with Default Regulations

The Financial Sector Conduct Authority mandates that all retirement funds submit pending applications for exemptions from or extensions to comply with the default regulations by 16h30 on Monday, 25 March 2019. This deadline addresses a substantial processing backlog caused by continued late submissions despite the original 18-month compliance window. The Authority explicitly warns that appropriate penalties will be considered for any applications received after the specified cutoff date.

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South Africa

Financial Sector Conduct Authority

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PFA INFORMATION CIRCULAR NO. 2 OF 2019 APPLICATIONS FOR EXEMPTION FROM THE DEFAULT REGULATIONS OR EXTENSION TO COMPLY WITH THE DEFAULT REGULATIONS

  1. All new default arrangements that came into operation on or after 1 September 2017 were required to comply with the requirements set out in the default regulations. Default arrangements already in existence as at 1 September 2017 were required to be fully aligned to the default regulations by 1 March 2019.
  2. Notwithstanding the 18 month period afforded to funds to comply with the default regulations, the Authority has continued to receive applications for exemption from the default regulations or extensions to comply with the default regulations on or after 1 March 2019. This has created a substantial backlog in the processing of the said applications.
  3. All funds are requested to submit their exemption or extension applications by no later than close of business (16h30) on Monday, 25 March 2019. Appropriate penalties will be considered after this period. OLANO MAKHUBELA DIVISIONAL EXECUTIVE: RETIREMENT FUNDS SUPERVISION ON BEHALF OF THE FINANCIAL SECTOR CONDUCT AUTHORITY Date: 19 March 2019
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