On Nov. 14, RSA FSCA consulted on draft standard on reporting.
RSA FSCA issued draft prudential standard on quarterly reporting requirements for pensions, per regulation 28, regulations under the pension funds act (PFA Regs).
Follows Nov. 2022, RSA FSCA communication on pension fund reporting, see #152690.
Draft Standard
Regulation 28 protects retirement fund member savings by limiting the extent to which funds may invest in a particular asset or in particular asset classes.
Reg 28 was revised and amended with effect from Jan. 3, 2023, requiring additional reporting re infrastructure assets, other amendments to asset spreading requirements,
RSA FSCA published draft prudential standard Regulation 28 quarterly reporting requirements for pension funds (Prudential Standard 1 of 2023) for public comment on Nov. 4, 2022, to ensure alignment with the amendments to regulation 28.
However, public comments received raised concerns re change in approach, timing pressures, and some of the specific proposed reporting obligations.
Updated draft standard (holistic reporting Prudential Standard) incorporates both non compliance reporting, and reporting on assets held in compliance with regulation 28.
Timeline
Consultation, refinement of draft holistic reporting prudential standard, and submission to Parliament envisaged to occur throughout 2024; final standard likely early in 2025.
Effectiveness
Interested parties invited to submit comments on draft standard by Jan. 31, 2024.
Feb. 2024 Parliamentary Submission
On Feb. 22, 2024, RSA FSCA issued notice on submission to parliament of draft prudential standard: Regulation 28 quarterly reporting requirements for pension funds.
Draft prudential standard and supporting documents submitted to parliament in terms of section 103(2), Financial sector regulation act, 2017 (FSR Act) on Feb. 20, 2024.
Apr. 2024 Prudential Standard Published
On Apr. 2, 2024, RSA FSCA published Prudential Standard 1 of 2024: Regulation 28 quarterly reporting requirements for pension funds (Prudential Standard).
Also published statement supporting Prudential Standard; notice re determination of format and manner of regulation 28 quarterly reports; and consultation report.
Funds must submit a report to RSA FSCA on a quarterly basis, within time periods stipulated in para 3(1), re any non-compliance with or breaches per regulation 28.
Prudential Standard comes into effect on the date of publication on Apr. 2, 2024.
Aug. 2024 Quarterly Reporting Changes
On Aug. 23, 2024, RSA FSCA issued RF Notice 16 of 2024, Communication 28 of 2024, on Exemption of Pension Funds from Certain Requirements of Prudential Standard 1.
Covers Regulation 28 Quarterly Reporting Requirements for Pension Funds, as set out.
RSA FSCA also referred to its RF Notice 8 of 2024 entitled Determination of Format and Manner of Regulation 28 Quarterly Reports, setting out relevant reporting requirement.
The purpose of the new Notice is to exempt funds from paragraphs 2(1) and 3(2) of Prudential Standard, as far as it relates to reporting non-compliance with or breaches in terms of Regulation 28 for the second quarter of 2024 (i.e. Apr. 1 to Jun. 30, 2024).
Funds will not now be required to submit 2024 second quarter, Regulation 28 report.
Thus, reporting in terms of the Prudential Standard will only commence during the third quarter of 2024, covering Jul. 1 to Sep. 30, 2024, meaning that the Regulation 28 reports for the third quarter, will all then be due within 90-days after Sep. 30, 2024.
Regulators
RSA FSCA
Entity Types
Pension
Reference
RN 16/2024, Com 28/2024, 8/23/2024; Com 12/2024, RN 8/2024, 4/2/2024; Com 4/2024 (RF), 2/22/2024; Com 31/2023 (RF), CP 11/14/2023; FSR Act, PFA Regs
