Regulatory Alerts2023-03-02
Added · Updated
Prudential Guidelines Number RBA 002: Implementation of Regulation 25(6) on Income Drawdown Option for Defined Contribution Retirement Benefits Schemes
This directive mandates strict adherence to established regulations for income drawdown arrangements within defined contribution retirement schemes, requiring prior written authorization from the Authority. Schemes must demonstrate technical, administrative, and infrastructural capacity while ensuring members receive professional financial advice and sign consent forms acknowledging inherent investment and longevity risks. After a minimum ten-year drawdown period, members are permitted to continue the arrangement, purchase an annuity, or withdraw the remaining balance as a lump sum.
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