• Financial Services Board

Directive PF No 8 - Pension Funds Act Prohibition on the Acceptance of Gratification

The FSB has just issued Directive PF No 8: Prohibition on the Acceptance of Gratification wherein it imposes conditions to combat and prevent bribery and corrupt conduct by any industry role player.

The purpose of this Directive is to determine conditions to be imposed by the Registrar of Pension Funds (‘Registrar’) in order to combat and prevent corruption and corrupt activities by and of principal officers, deputy principal officers, board members, employees of retirement funds, valuators, auditors, administrators, employees of administrators or other officers or other service providers to retirement funds including investment managers and investment advisors.

These include:

  1. money, whether in cash or otherwise

  2. any donation, gift, loan, fee, reward, valuable security, property or interest in a property of any description, whether movable or immovable, or any other similar advantage

  3. the avoidance of loss, liability, penalty, forfeiture, punishment or other disadvantage

  4. any office, status, honour, employment, contract of employment or services, any agreement to give employment or render services in any capacity and residential or holiday accommodation

  5. any payment, release, discharge or liquidation of any loan, obligation or other liability, whether in whole or in part

  6. any forbearance to demand any money or money's worth or valuable thing

  7. any other service of favour or advantage of any description, including protection from any penalty or disability incurred or apprehended or from any action or proceedings from a disciplinary, civil or criminal nature, whether or not already instituted, and includes the exercise or the forbearance from the exercise of any right or any official power or duty

  8. any right or priveledge

  9. any real or pretended aid, vote, consent, influence or abstention from voting, or

  10. any valuable consideration or benefit of any kind, including any discount, commission, rebate, bonus, deduction or percentage

but excludes remuneration paid by a sponsor of a retirement fund to a board member appointed by the sponsor of a retirement fund.

Specific types of gratification not permitted:

  1. any gratification which objectively viewed, creates a conflict of interest with their fiduciary duty towards the fund;

  2. token gift/s that exceed/s the annual limit set by the board in terms of the fund’s gift policy, which annual limit shall not be more than R500.00 per annum in aggregate from any one service provider;

  3. any gratification relating to local or international due diligence's including, but not limited to, subsistence, travel or accommodation

  4. any gratification relating to local or international entertainment or sporting events including, but not limited to, subsistence, travel or accommodation; and

  5. conferencing costs or board of fund expenses.

This directive takes effect on 8 March 2018.

Download full directive in PDF - CLICK HERE

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