Regulatory Alerts2018-03-31
PF Circular 93: Approval of Nominee Companies for Pension Fund Assets
The South African Financial Services Board issued this circular to establish regulatory conditions and approval procedures for pension funds to hold assets through approved South African or foreign nominee companies under the Pension Funds Act. The document mandates standardized written agreements requiring monthly reporting, strict asset segregation, adequate insurance, and unrestricted auditor access, while compelling fund boards to conduct rigorous fiduciary assessments of foreign nominees' financial strength and jurisdictional risks. It further outlines the Registrar’s authority to revoke or amend approvals, requires immediate regularization of existing arrangements, and provides a specimen memorandum to standardize nominee-client relationships.