In terms of its previous communication published on 3 May 2024, the Financial Sector Conduct Authority (FSCA) advised that rule amendments submitted before 15 July 2024 would be processed on a ‘first-come-first-served’ basis and submissions made thereafter would be processed once the first batch had been completed.
In a media briefing this week, the FCSA’s head of fund governance and trustee conduct advised that this date has now been extended until 31 July 2024.
The FSCA has expressed concern about the number of retirement funds that have still not submitted their rule amendments, cautioning that funds that do not submit their amendments in time will have to abide by the ‘normal service level commitments’ and will not be ready to implement the new two-pot system come Spring Day.
The delay in enacting the Pension Funds Amendment Bill, 2024 (PFAB) and confusion around further changes that are anticipated to be made to the Revenue Laws Amendment Act, 2024 (RLAA), appear to be contributing to the slow pace in the submission of rule amendments.
Although the President has not yet signed the PFAB into law, the FSCA has advised funds to submit their amendments for it to give ‘in principle’ approval. Once the PFAB has been enacted, registration of the relevant rule amendments will then take place.
Accordingly, retirement funds are encouraged to prepare the necessary rule amendments and submit them in draft form to the FSCA before the end of the month.
