Following our publication about the Financial Sector Conduct Authority’s Conduct Standard 1 of 2022 relating to the payment of retirement fund contributions, we now set out the compulsory reporting format that has been prescribed under the Conduct Standard.
Our payroll and employee benefits consulting expertise fits together to ensure our clients remain compliant with an ever-changing regulatory landscape.
The FSCA has published the following documents, which are available on its website at https://www.fsca.co.za/Regulatory%20Frameworks/Pages/Notices.aspx
FSCA RF Notice 14 of 2022: determination of format of documents in respect of requirements related to the payment of pension fund contributions, and
FSCA Communication 27 of 2022 (RF): publication of determination of format of documents in respect of requirements related to the payment of pension fund contributions.
Conduct Standard 1 of 2022 (the Conduct Standard) about contributions, contributions statements, and reporting has now been published and is the law. The effective date set for the Conduct Standard is 20 February 2023. The existing Regulations of the Pension Funds Act (the Act) are repealed on the same date.
The three prescribed formats are for the:
A fund must notify every participating employer before the employer starts participating in the fund, and every year, of the employer’s duties, obligations, and liability under section 13A of the Act and the Conduct Standard. This notification to the employer is the first of the prescribed formats. This notification (and request) is directed by the fund to the Managing Director (or equivalent) at the employer.
The prescribed notice also requires that (both before the employer participates in the fund and on an ongoing annual basis) a request is made by the fund to the employer to notify the fund of the “identity” and “particulars” of the person(s) at the employer who are personally liable for compliance with section 13A of the Act which provides for both the payment of contributions and the provision of contribution schedules.
For different types of employer entities, the persons to be notified by the employer of the fund may be different. For a company, it is “every director who is regularly involved in the management of the company’s financial affairs”.
The employer must give the requested information to the fund within 14 days.
The other two prescribed formats are the report by the fund to the FSCA and the report by the fund to SAPS.
When a fund reports contraventions relating to contributions or contributions statements to the FSCA as required by the Conduct Standard, it must do so in a prescribed format.
This report requires:
In addition, monthly updated reports by the fund to the FSCA are required until the contravention has been resolved.
The prescribed format of the report by a fund to the SAPS is a sworn affidavit and includes the requirement for attaching annexures containing evidence of what is alleged in the affidavit.
The sworn affidavit is completed by the person specified in section 13A(6) of the Act, which is either the Principal Officer or the person authorised by the fund to monitor contributions (often called “the monitoring person” or the “authorised person”).
The report requires the provision of the following information to SAPS, amongst others:
Annexures required: resolution appointing monitoring person or Principal Officer, fund’s registration certificate, the rules, and special rules (if applicable), the proof of the employer’s participation in the fund; prescribed requests from the fund, and notifications from the employer about persons liable at the employer.
The format of the reports to the monitoring person/Principal Officer, the board, and to members is not prescribed. The format of contribution statements is not prescribed, even though the content of the statements is prescribed.
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