Board and min­is­ter to work to­gether

Weekend Argus (Saturday Edition) - - PERSONALFINANCE -

Much of the re­form of re­tire­ment funds will be done by notices and di­rec­tives is­sued by the Fi­nan­cial Ser­vices Board (FSB) rather than amend­ments to leg­is­la­tion.

Rose­mary Hunter, the FSB’s deputy ex­ec­u­tive in charge of re­tire­ment funds, says that in 2008, many of the pow­ers the Min­is­ter of Fi­nance had to pre­scribe stan­dards for re­tire­ment funds and ad­min­is­tra­tors were trans­ferred to the FSB. But the min­is­ter has re­tained some pow­ers. So it is im­por­tant that her team and the min­is­ter’s re­tire­ment re­form team reg­u­larly consult each other to en­sure that the re­form mea­sures that each might want to adopt are in har­mony.

In his re­cent medium-term bud­get speech, Fi­nance Min­is­ter Pravin Gord­han made a pass­ing ref­er­ence to re­tire­ment re­form with­out spelling out de­tails.

He said fi­nan­cial sec­tor re­forms are now in the im­ple­men­ta­tion phase, with the “twin peaks” leg­is­la­tion to es­tab­lish two new reg­u­la­tory au­thor­i­ties (the FSB to reg­u­late mar­ket con­duct and the Re­serve Bank to en­sure the fi­nan­cial sound­ness of the sec­tor) to be sub­mit­ted to cab­i­net shortly.

“The re­tire­ment re­form pro­gramme is also pro­gress­ing, with the con­sul­ta­tion process on re­tire­ment fund costs at its fi­nal stage. Draft reg­u­la­tions will soon be re­leased,” Gord­han said.

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