Regulatory Alerts2019-08-01
FSCA Communication 2 of 2019 Exemption from Regulation 37(2)(g) for Hybrid Annuities
The Financial Sector Conduct Authority has issued a communication granting pension funds an exemption from Regulation 37(2)(g) to offer hybrid annuities without being bound by the standard twelve-month transfer rule. Funds must ensure in-person retirement counselling, obtain explicit written member acceptance regarding the life annuity portfolio's lack of portability to other insurers, and allow members to transfer their hybrid annuity to another service provider at least annually. This regulatory dispensation aims to deepen annuity markets, enhance retiree choice, and encourage long-term poverty protection by allowing longevity risk coverage within living annuities.
Share