FANews
FANews
RELATED CATEGORIES
Category Retirement
SUB CATEGORIES Annuties |  General |  Savings & Investments | 

R5-mil Penalties per day for mismanagement

02 November 2007 Marshall Inc

Penalties of up to R5-million per day are amongst several hard-hitting measures introduced to curb mismanagement in the retirement industry, which has been rocked by scandal in recent months.
 
These measures were introduced in amendments to the Pension Funds Act, as of 13 September 2007, when the Registrar's powers were dramatically increased.
 
The amendments aim to deal with instances of poor governance, conflicts of interest and non-compliance with the Act (among other things). The Registrar's new powers may be used against trustees of retirement funds, administrators and other service providers. 
 
In addition to the administrative penalty (similar to a fine) of up to R5 million per day of non-compliance, the Registrar's enhanced powers include the jurisdiction to replace any trustee who is not 'fit and proper' to fulfill the role, to suspend or withdraw the approval of an administrator, and to "name and shame" a fund, administrator or other service provider by way of publication in the media if this is in the interest of the public."
 
"We believe that these amendments to the Act, will ultimately be to the benefit of all concerned, provided that the Registrar's powers are exercised appropriately" comments Samantha Davidson of Shepstone & Wylie's Pension Law Department. "It is critical that government takes a firm and visible stand against misconduct in the industry, where so much is at stake for members of the public and other stakeholders in the retirement fund industry".
 
She says that the changes are particularly pertinent given the fact that for many South Africans, their retirement savings are their most valuable asset, worthy of proper protection.

Quick Polls

QUESTION

The South African authorities are hard at work to ensure the country is removed from the global Financial Action Task Force grey-list by February or June 2025. What do you think about their ongoing efforts?

ANSWER

But what about the BRICS?
Compliance burden remains, grey-list or not.
End-2025 exit is too optimistic.
Grey-list is the new normal.
Too little, too late.
fanews magazine
FAnews October 2024 Get the latest issue of FAnews

This month's headlines

The township economy: an overlooked insurance market
FSCA regulates crypto assets: a new era for investors
Building trust: one epic client experience at a time
Two-Pot System rollout underlines the value of financial advice
The future looks bright for construction
Subscribe now