The government of South Africa says it is committed to reforming the local retirement landscape.
This followed a recent directive to the Financial Services Board (FSB) to proceed with measures to modernize and improve the governance of all retirement funds, starting with a proposed requirement that all retirement funds will have to submit audited financial statements annually in the future.
In a recent circular, the FSB stated that it is in the process of implementing a more proactive approach to the supervision of retirement funds with a dedicated focus on members protection.
This process and approach necessitates comprehensive and timeous reporting by fund managers.
As a result, the current practice of exempting smaller funds from submitting financial reports annually is now cancelled.
Government is looking more closely at how retirement funds are run, controlled and managed.
Late submission of annual financial statement is often an early indicator of problems at a fund.