Regulatory Alerts2024-04-30
FSCA Communication 16 of 2024 (RF): Updated Requirements for Retirement Fund Rule Amendments Implementing the Two-Component System
The Financial Sector Conduct Authority has issued updated requirements mandating that all retirement funds amend their rules to implement the two-component system, effective 1 September 2024. Contributions will be split into a retirement component, which is paid as an annuity, and a savings component that receives one-third of contributions plus 10% seed capital capped at R30,000 and allows pre-retirement withdrawals. Funds must submit these targeted rule amendments via the FSCA’s online portal between 2 May and 15 July 2024 on a first-come, first-served basis to ensure timely approval before the legislative commencement date.
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