FSRA engages retirement funds on compliance
EZULWINI - In a bid to foster a culture of compliance and accountability on the backdrop of a dynamic financial landscape globally, the FSRA successfully engaged retirement funds industry players.
The engagement was held at the Royal Villas in Ezulwini, last Friday where financial regulations; compliance frameworks and the evolution of the industry were discussed in detail.
The visibly ecstatic Financial Services Regulatory Authority (FSRA) Chief Executive Officer (CEO), Ncamiso Ntshalintshali, said meeting the industry players and stakeholders had been a long time coming, and his organisation was impressed by the turnout. He said engaging the stakeholders on the aforementioned issues was a testament to his organisation’s intentional approach towards promoting compliance as a guiding principle in all aspects of its operations.
Ntshalintshali first commended the dedication and commitment demonstrated by the industry stakeholders in fostering a culture of compliance and accountability. He said their efforts did not only safeguard the integrity of the country’s financial markets, but also instilled trust and confidence among investors and consumers alike.
System
“Our commitment to regulatory adherence is a concerted effort rooted in our unwavering dedication to protecting the interests of our stakeholders, ensuring the long-term sustainability of retirement savings and upholding the integrity of our financial system,” he said.
He advised that compliance with regulatory standards was not merely a legal obligation but a moral imperative and a cornerstone of trust in the country’s financial system.
“As custodians of the financial well-being of countless individuals and families, we bear a profound responsibility to ensure the integrity, stability and security of retirement funds,” he said.
The CEO emphasised the critical importance of adhering to regulations governing the operation of retirement funds. He said the regulations were designed to safeguard the interests of pensioners; protect the long-term sustainability of retirement savings and uphold public trust in the industry.
“I must emphasise the pivotal role that retirement funds play in our economic landscape. These funds are significant assets, representing the hard-earned savings and future security of thousands of individuals. Given the interconnected nature of our financial system, it is imperative that pension funds exercise prudence and responsibility in executing their fiduciary duties on behalf of their members. This ensures not only the protection of individual savings but also the stability and integrity of our broader financial ecosystem,” said Ntshalintshali.
Landscape
He identified the need to continually sustain standards that were beyond reproach given the high volatility in the local and global markets.
“In today’s rapidly changing landscape, characterised by evolving market dynamics and emerging risks, the need for robust compliance measures has never been more pressing. We must remain vigilant in our efforts to uphold the highest standards of governance, transparency and accountability. Together, let us uphold the highest standards of governance so as to safeguard the financial well-being of all stakeholders,” he advised.
He urged industry players and stakeholders to embrace a culture of compliance as a guiding principle in all their operations. He advised them to prioritise ethical conduct, sound risk management practices and adherence to regulatory requirements in all their undertakings.
He challenged the industry to view compliance not as a burden but as an investment in the future resilience and credibility of the sector. By fostering a culture of compliance, Ntshalintshali said the industry players will not only mitigate risks and protect stakeholders, but will also lay the foundation for sustainable growth and prosperity in the retirement funds sector.
He urged the industry to continue engaging in meaningful dialogue, share best practices and work together towards building and enhancing a more resilient and compliant financial ecosystem. He observed that if the industry engaged openly and frequently, the sector could navigate the complexities of regulatory compliance, promote innovation and ultimately, drive sustainable growth and prosperity for all.
Awareness
Meanwhile, stakeholders who attended Friday’s session lauded the FSRA for the initiative and said they were looking forward to further engagements in the future. They said consumer awareness at both regulator and industry players’ levels was quite imperative in ensuring the industry’s probity. They also appreciated the CEO’s advice on prioritising assessing risk when investing funds in foreign markets. Ntshalintshali had advised the industry not to go to high-risk environments whose list is reviewed and released periodically in the United Nations Security Council (UNSCR) AML Guidelines.
Active engagement was also noted, as participants were divided into groups and were tasked with drawing up a SWOT analysis of the industry. From this analysis, the gathering identified the way forward as increasing engagement; embarking on policy review and development exercises; increasing engagements with other regulators, agencies, stakeholders, etc.; introducing safety nets and crisis management funds; increasing industry training, awareness and capacity campaigns and ensuring that policies are research-driven.