Regulatory Alerts2018-03-31
Information Circular 3 of 2010: Clarification on Approval Requirements for Pension Fund Administration Services and Advice
The South African Financial Services Board issued Information Circular 3 of 2010 to clarify when entities or individuals require approval under the Pension Funds Act and FAIS Act to administer benefits, manage investments, or provide advice to South African pension funds. The circular explicitly categorizes entities such as retirement fund administrators, unions, payment intermediaries, and foreign investment managers as requiring registration, while exempting CISCA-approved schemes, LTIA-registered insurers, and pure financial advisors. Pension fund boards must conduct due diligence on appointed administrators, and foreign investment managers are granted a compliance extension until 31 December 2010 to secure the necessary regulatory approvals.