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2018-03-31

PF Circular 71

The South African Financial Institutions Office mandates self-administered pension funds to submit a standardized valuator report on asset-liability matching alongside their statutory Section 16(1) actuarial valuation. Issued in conjunction with national actuarial societies, the circular provides a mandatory certification template and requires initial compliance for all funds investigated on or after 1 October 1989. Valuations that cannot be signed without qualification must explicitly detail any deficiencies in the fund's asset structure or liability matching procedures.

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FINANCIAL INSTITUTIONS OFFICE Private Bag X238 PRETORIA July 1990

CIRCULAX P.F. KO. 71

(To 211 self-edministered pension funds which are subject to

actuarial investigations)

,- PEI1SI3;J F-fiTDS ACT, 1955 : RZPOCT BY TZE l~AL1:iiTOiZ IH ZESD3CT OF j's I~;'~;'s:T;~I\TT GUIDZLI~:~~ "'vq'. ;i,,dS OF REGIJL\TIG>l 28

  1. Funds were advised in paragraphs 5 2nd l(b) of Circulers P.F. 69 and P.F. 70 that, inter alia, this Office rcquirs: the valuator of a fund (where applicable) to covT.en'; annaa!.ly on the structure of that f&'s assets aad their ~c2roprictenessia relatic2 to metchi~.g the liabilities of . . . tho fund. After ~i;zussions w13:n varioss irjteresreci p;--:,- -- It wzs, however, Cecided that 5ilr.d~chould resort ever... tb~~: .-- .;ilTS.

  2. The ;e?ort of thl- valuate!: shell he subnitked together vli;i! -I.. L.,: . .raluation reaor: o: 'i?e valuator rec!~irerl in terl:!s of :action 16(1) of tha >.ct and within the pericd prescribe6 in sbbscztion (2). Th= repr,rt must be bessd on the fllnd's return (Statement 14) in terx of 3eg~lztic328, vSllshs3 ic . G~~ernment KoL:r= 59. 1520 (Governnent Ctirette Fa. 12379 cE 1 S~pkember1569). -, a, ?'he first reports shrll be made ir! recs-ct of t>.e fu.rh v!.ri~icl> uere subjected to investicstions by valuztors in terns of --->-. :cLLlon lE(1) of the .c.ct 5% 1 Octcber 1989.

  3. Circular P.F. 70 prescribed the return (Statement 14) for funds, including the auditor's report, that forms part of their annual financial returns.

  4. This Gffice has in conjunction with the Actuarial Society of South Africa nnd the South African Association of Consu1tir.g Actuaries, compiled the report required of the valuator and s:lall be phrased as follows: "The Rsgistrar of Pension Funds Private 2ag X230 PRETORIA 0001 Pour reference : 12/8/ ..... /2 Our reference : .......... Sir E'ELTSIO;: FLTCDS ACT, 1956 : RGPORT SY THE VALUATCR In EESPZCT Gli T2': IIXZSTtFXT CYIDSLIUZS IN TE?J.:S OF EEGLS'iTIO:c! 20 i,'l!e certify that I/k-e am/are satisfied with the structure of the assets of the >.BC ?e?:sio?: Fund and tlia'i the n~atching of tbs zssetz with thz l3sbilit;es of the Fl~nd are, in mp/our opinior,, tdequata.

  5. If tlie ~ral~ctdr isunsble to sign the report in the above.?ientioned form ~.?ithout qualification, 1-ae nest issue a report eeeilng vith the mektcrs referred to, insicating -

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