Regulatory Alerts2018-03-31
PF Circular 53: Fidelity Guarantee Insurance Requirements for Pension Funds
The Registrar of Pension Funds requires all self-administered pension funds to reassess and adjust their fidelity guarantee insurance coverage following evidence that previous limits may be insufficient. Each fund must consult its auditor to determine adequate coverage levels and submit an annual auditor certification confirming policy sufficiency alongside its yearly financial statements. This directive updates prior guidelines that recommended a maximum cover of R100,000, mandating ongoing auditor verification to ensure adequate protection against employee dishonesty.
FIYANCIAL I~~STII'TTTiOYSOFPIC? Prlvate Bag X23b
PEETOBIP.
0001
3 Aeotember 1982
CIRCULAR P,F. >?
(To ali self-admxnistered pension' fund,? )
FIDELITY GTJARILNT.3T IhTSTJRP.NC%
- This Office advised pension funds in CircularsNos. P.F.3 and P.F. 5 datsd December 1961 an3 July 1?62, respectively, that fidelity gua.ra.rtee insurance cover equal to 5$of a pension fund's total assets, with a maximum of R100 000, should be sufficient for the purposes set forth in the circulars.
- Inquiries have now revealed that in the case of certain . . pension funds a msxinum insurance cover of R130 030 could be
inadequate. The purpose of this circular is to request
every pension fund to revise the FundPs fidelity guarantee
insurance cover in consultation with its auditor and to
furnish this Offlce as soon as possible with a statement
by the auditor indicating whether the Fund's fidelity
guzrantee insurance.cover is in his opinion adequate. Such
a statement should please in future be submitted to this
Office every year together with every pension fund's annual
financial statements.
- A copy of this circular is enclosed - for the Fund's . . auditor.' ~indly have the attached acknor~ledgement form signed also by .the auditor before returning it to this Office. ' . REGISTRAR OF PENSION FUNDS
/LTS