Regulatory Alerts2023-02-20
FSCA Final Guidance Notice on Section 14(7) of the Pension Funds Act, 1956
The Financial Sector Conduct Authority has published a final guidance notice clarifying the application of Section 14(7)(b) of the Pension Funds Act regarding intermediary remuneration during transfers between retirement annuity funds. The notice resolves existing inconsistencies with the Long-term Insurance Act Regulations by confirming that the Pension Funds Act prevails and requires financial services providers to meet specific conditions when charging commissions exceeding statutory limits. It further mandates the concurrent application of relevant FAIS General Code provisions to ensure consistent interpretation and reduce regulatory uncertainty for industry stakeholders.
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