Regulatory Alerts2018-03-31
Information Circular No. 3 of 2017: Registrar Appointment of Pension Fund Board Members Under Section 26(2)
The Financial Services Board outlines the regulatory requirements for the Registrar's appointment of interim directors to pension fund boards under section 26(2) of the Pension Funds Act, 1956, when a fund operates without a properly constituted management committee. These appointed members must execute duties defined by the Act, fund rules, and common law, including constituting a compliant board, overseeing daily operations, ensuring legal compliance, approving financial statements, collecting employer contributions, and executing investment and benefit distribution decisions. The Registrar formalizes these obligations in appointment letters and retains the authority to modify or supplement them according to the specific operational needs of each fund.