Conduct Standard on section 14 transfers released by FSCA and is in effect

The Financial Sector Conduct Authority (FSCA) has published FSRA conduct Standard 10F of 2019 (PFA) relating to s 14 transfers in terms of the Pension Funds Act 24 of 1956 (the Act).

This Conduct Standard sets out in detail the process to facilitate transfers between a registered retirement fund and any other person. It provides timelines and requirements for the lodging of an application and the finalisation of the transfer following approval. It additionally requires that a comparison of the costs and benefits under the transferor and transferee funds be disclosed to the transferring members, except where the transfer is requested voluntarily by members (eg in Retirement Annuities) or where the transfer is in respect of unclaimed benefits.

Board Notice 208 of 2011 sets out the conditions imposed by the registrar of pension funds in respect of the different types of transfers in terms of s 14 of the Act, as well as providing the forms required for such an application. The appropriate conditions and certifications have been updated and the forms realigned, to clarify the requirements and make these more complete. The Conduct Standard replaces the previous Directive 6 issued as a Board Notice.

FSRA conduct Standard 10F of 2019 – s 14 transfers

FSCA Consultation Report on the draft Conduct Standard - s 14 transfers

The following appendices reflect the new format and submissions process:

• Appendix 1 of Conduct Standard 1 of 2019 (PFA)
• Appendix 2 of Conduct Standard 1 of 2019 (PFA)
• Appendix 3 of Conduct Standard 1 of 2019 (PFA)
• Appendix 4 of Conduct Standard 1 of 2019 (PFA)
• Appendix 5 of Conduct Standard 1 of 2019 (PFA)