FSCA's Request for Information on paid-up members of retirement funds

Nicci van Vuuren, Senior Associate from Webber Wentzel

Retirement funds and administrators have until 30 September 2022 to provide information about paid-up members in the required format to the Financial Sector Conduct Authority.

In an effort to understand and obtain necessary information relating to paid-up member benefits, the Financial Sector Conduct Authority (FSCA) published the FSCA Information Request 5 of 2022 (RF) on 22 June 2022, requiring all retirement funds and administrators to:

• submit information relating to new paid-up members (including members whose benefits were paid-up before the Default Regulations came into effect) at 30 September 2022, by completing a FSCA document and uploading it onto the FSCA Retirement Funds Online System by no later than 31 October 2022. This is a once-off request;
• provide the original value of the paid-up benefit as well as the value at the last day of every quarter. This information is to be submitted to the FSCA within 30 days of the last day of each calendar quarter.

The FSCA seeks to ensure that the Retirement Funds Online System (RFOS) reflects accurate and current information. The RFOS, in turn, optimises and complements the Unclaimed Benefit Search Engine established in 2018. Retirement Funds and administrators must provide the required details in a prescribed format which is aptly set out in the FSCA Communication 18 of 2022 (RF) accompanying the Information Request.

Failure to comply with this request would constitute an offence and any person found guilty would be liable on conviction to a fine not exceeding ZAR 10 million or imprisonment for a period of up to 10 years, or both a fine and imprisonment.