Financial reporting – Exemption for certain pension funds

The FSCA has just published PFA exemption notice no. 3 of 2019 that exempts certain funds from the requirements of sections 9a and 16 of the Pension Funds Act.

What does the PFA say?

  • Section 9A of the PFA requires that every registered fund, which must have its financial condition investigated and reported on by a valuator in terms of section 16 of the PFA, to appoint a valuator.
  • Section 16(1) of the PFA requires that a registered fund shall, at least once in every three years, cause its financial condition to be investigated and reported upon by a valuator, and shall deposit a copy of such a report with the Authority, and shall send a copy of such report or a summary thereof, prepared by the valuator in a form prescribed and signed by the valuator, to every employer participating in the fund.
  • Section 2(5)(a) of the PFA provides that the Authority may, where practicalities impede the strict application of a specific provision of the PFA, exempt any fund from, or in respect of, such provision on conditions determined by the Authority.
  • Section 281(4) of the Act requires that where the Authority grants an exemption in terms of a financial sector law, the requirements of section 281(3) must be met and such exemption must be published. The PFA is a financial sector law as defined in section 1(1) read with Schedule 1 of the Act.

The relevant effective dates and durations of the exemptions are listed in Annexure A of the PFA Notice. Click here to download.

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