FSB reassures stakeholders

Recent media reports, notably some radio interviews, may have caused some uncertainty in the ranks of the stakeholders of a number of Pension Funds whose surplus assets were misappropriated during the 1990’s and were subsequently placed under curatorship at the instance of the Financial Services Board (FSB). The FSB has decided to publish a general information circular to stakeholders in order to allay fears aroused by distortions in the public media. The contents of the circular also address insinuations that monies collected by the curator/liquidator of the funds have not been properly accounted for.

The curator/liquidator has been tasked with the recovery of the misappropriated assets of the Funds. In so far as recoveries have been made, the assets recovered constitute surplus assets in the Funds, the distribution of which is governed by the provisions of surplus legislation. The circular contains sufficient details identifying the Funds, the status of their surplus apportionment schemes, the existence and whereabouts of the monies recovered by the curator/liquidator, as well as the valuation reports submitted for each of the Funds as at their respective surplus apportionment dates.

The circular is available on the FSB’s website (http://www.fsb.co.za/).

The FSB has confirmed and verified that as at 31 October 2011 the assets of the Funds, totalling R902 139 million are accounted for, and are held at the following institutions:

Stakeholders may therefore rest assured that contrary to speculative media reports, the monies recovered are safe and available, have been accounted for, and will be distributed in accordance with the surplus scheme of each Fund, once approved.