Roadmap for roll-out and implementation of cross-sectoral Conduct of Business Return (Omni-CBR)
The FSCA, on 8 June 2022 issued Communication 16 of 2022, informing the industry of the purpose and the roadmap for the roll-out and implementation of the Omni-CBR (Omni-CBR Roadmap) and the draft Omni-CBR template for public consultation.
The FSCA is required to monitor the extent to which the financial system is delivering fair outcomes to financial customers, with a focus on the fairness and appropriateness of financial products and financial services and the extent to which they meet the needs and reasonable expectations of financial customers. To monitor whether the financial system is delivering fair outcomes to customers, the FSCA needs access to meaningful, reliable, measurable and comparable information on key conduct indicators across financial institutions. To give effect to this, the FSCA embarked on a multidisciplinary project to facilitate a process for detailed and consistent conduct of business reporting by financial institutions in future.
To date, conduct of business statutory reporting has only been formally implemented in respect of insurers. Building on the extensive work done and insights gained during the roll-out of the insurance conduct of business returns, the FSCA’s supervisory team has more recently been working on the development of a broader Omni-CBR.
The FSCA is embarking on a multi-year consultation and implementation process aimed at reaching a steady state of full and complete conduct of business reporting on a quarterly basis across the financial sector by June 2026. Phase 1, planned for 2022, will consist of webinars to explain the Omni-CBR, followed by industry engagement workshops per sector and written comments.
The FSCA recognises the potential resource, data and system development implications of this type of ongoing reporting for financial institutions as well as for the FSCA itself.
The roadmap provides background on the objectives and intended outcomes of the Omni-CBR for the financial sector and the FSCA; sets out the envisaged engagement and implementation milestones to facilitate an incremental phasing in of harmonised conduct of business reporting across the financial sector; provides a high-level overview of the type of data requested in the Omni-CBR; and confirms the next steps in finalisation of the Omni-CBR.
Levies on financial institutions
On 9 June 2022, the FSCA released a draft notice for the increase of levies on financial institutions. Interested persons are invited to make written submission on or before 22 July 2022. The proposed levies reflect a slight increase from the 2021 levies.
The levy year will run from 1 April 2022 to 31 March 2023.
Employers have seven days after the expiration of the period in respect of which contributions are due, to pay contributions over to the funds. The Pension Funds Act makes the non-payment of contributions a criminal offence with consequences of potential personal liability for the management of the employer.
The FSCA on 9 June 2022 published Communication 17 of 2022, alerting retirement funds and employers of their intent to publish the names of funds and employers with arrear contributions on the FSCA’s website.
Retirement funds are requested to share this communication with participating employers.
The FSCA is currently compiling the list and checking the accuracy of the value of arrear contributions.
FSCA’s once-off request for information on historical information
The FSCA on 22 June 2022 published information request 5 of 2022 and FSCA Communication 18 of 2022 on its website.
All retirement funds and administrators are requested to submit to the FSCA information relating to new paid-up members, including members whose benefits were paid-up (deferred pensioners) before the default regulations came into effect on 30 September 2021 on or before 31 October 2022.
All retirement funds and administrators are requested to provide, at least once every quarter (within 30 days after the last day of the calendar quarter):
(a) Original value of the paid-up member’s benefit;
(b) The current value or paid-up value of the paid-up benefit;
(c) The date on which the paid-up benefit was transferred or paid to the member or beneficiaries.
The information must be submitted electronically through the FSCA’s website.
For further information on Simeka please visit www.simekaconsult.co.za
Mpho Kgomongoe, Legal and Technical Specialist
Simeka Consultants and Actuaries