News alert – administrative penalties have increased
Penalties for the failure to submit information have increased from 1 March 2018 The Financial Services Board has issued a notice stating that administrative penalties for failing to submit information requested in terms of the Pension Funds Act have increased. From 1 March, the penalty for each day of non-compliance is R4 000, up from R1 000.
The process for imposing penalties Before imposing a penalty, the Registrar must do the following, in writing:
Inform the administrator, pension fund or third party of the intention to impose a penalty.
Specify the particulars of the alleged non-compliance.
Provide reasons for the intended penalty.
Specify the amount of the intended penalty.
Invite interested persons to make representations within a specific period. For example, a closing fund may request the Registrar to reduce or waive the penalty based on its specific circumstances.