Regulatory Alerts2018-03-31
Information Circular 2 of 2012: Regulation 28 Monitoring of Compliance
The Financial Services Board requires pension fund boards of management to implement appropriate systems and monitoring mechanisms to ensure continuous compliance with Regulation 28 of the Pension Funds Act. Boards must confirm that service providers maintain adequate processes and obtain quarterly and year-end compliance reports along with detailed portfolio holdings. If these monitoring systems are properly implemented, daily reporting of portfolio holdings is no longer necessary for compliance purposes.
FINANCIAL SERVICES BOARD
Riverwalk Office Park Block B 41 Matroosberg Road Ashlea Gardens Extension 6 Pretoria South Africa 0081 PO Box 35655 Menlo Park Pretoria South Africa 0102 Tel +27 12 428 8000 Fax +27 12 346 6941 E-mail info@fsb.co.za Toll free 0800 110443/0800 202087 Website: www.fsb.co.za
| ENQUIRIES: | Wilma Mokupo | D. DIALLING NO.: | 0124288032 |
| OUR REF: | FAX: | 0123466510 | |
| DATE: | 29 November 2012 | E-MAIL: | Wilma.mokupo@fsb.co.za |
INFORMATION CIRCULAR PF NO. 2 OF 2012
PENSION FUNDS ACT, 1956
REGULATION 28 – MONITORING OF COMPLIANCE
For purposes of monitoring continuous compliance with the requirements of regulation 28, boards of management of pension funds (“boards”) must ensure that they have the appropriate systems and monitoring mechanisms in place. Boards must obtain confirmation that the processes and procedures of funds’ service providers are adequate to ensure continuous compliance with their specific mandate(s) or contractual arrangements. Service providers must further be able to provide reports (at least quarterly and at the financial year-end of the fund) on compliance with regulation 28 and their detailed portfolio holdings.
Where boards have implemented the necessary systems and mechanisms as set out above, it would not be necessary to obtain detailed portfolio holdings on a daily basis for monitoring purposes.
Yours sincerely
[Signature]
JA BOYD REGISTRAR OF PENSION FUNDS
Board Members: AM Sithole (Chairperson) H Wilton (Deputy Chairperson) Z Bassa JV Mogadime Prof PJ Sutherland D Turpin H M H Ratshefola D Msomi I Momoniat O Makhubela (Alternate) Executive Officer: DP Tshidi
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