Section 14 Conduct Standard Changes

J Law Consulting (Pty) Ltd — 1 April 2025  |  JLAW IC 2 of 2025

The Financial Services Conduct Authority (FSCA) published FSCA Communication 4 of 2025 (RF), informing stakeholders that the following two documents were published on 28 March 2025: FSCA Conduct Standard Amendment 1 of 2025, amending FSRA Conduct Standard 1 of 2019 (PFA) — Conditions for amalgamations and transfers in terms of section 14 of the Pension Funds Act; and FSCA RF Notice 5 of 2025 — Determination of Section 14 Conduct Standard Forms. FSCA RF Notice 18 of 2024, which allowed for an interim exemption from using the forms prescribed under FSRA Conduct Standard 1 of 2019 (PFA) in favour of new revised forms from 1 September 2024, was also withdrawn.

FSCA Conduct Standard Amendment 1 of 2025

The Conduct Standard Amendment removes the section 14 application forms from Conduct Standard 1 of 2019. Going forward, the forms are determined separately by the FSCA under the new paragraph 19A framework rather than being embedded in the Conduct Standard itself.

The amendment also makes clear that for transfers to or from an entity not registered by the FSCA, the same forms must be used as for transfers between FSCA-registered entities, "with the necessary changes".

A new paragraph 19A is inserted, enabling the FSCA to determine the manner of submission, content and format of the forms, and who must sign off on them. These determinations must be published on the FSCA's website.

Effective: 28 March 2025

FSCA RF Notice 5 of 2025

The RF Notice determines the format of the section 14 application forms. The forms are essentially the same as those that formed part of Conduct Standard 1 of 2019. The only substantive difference is that the forms now contain a distinction between the different two-pot components. These changes were already included in the forms published under FSCA RF Notice 18 of 2024 and are already used by the industry.

The RF Notice also determines that forms must be submitted electronically through the FSCA Retirement On-line system.

Effective: 28 March 2025

Effective Dates

Effective: 28 March 2025 — FSCA Conduct Standard Amendment 1 of 2025 and FSCA RF Notice 5 of 2025
Withdrawn: 28 March 2025 — FSCA RF Notice 18 of 2024 (interim exemption)

Summary of Transfer Types and Forms

Retrospective transfer

Where at the effective transfer date the number of members and the amounts are known. Forms: A, A1, A2.

Prospective transfer

Where at the effective transfer date the number of members who intend to transfer and/or the amounts are not known. Forms: B, B1, B2 on application; B3 within 2 months of effective date or, in the case of a blanket transfer, the expiry of the prospective period.

Group annuity purchase

Purchase of annuities for a group of pensioners from a long-term insurer, or transfer of annuity policies to their names. Forms: C, C1 on application; C2 for a prospective transfer, within 2 months of effective date or the expiry of the prospective period.

Agterskot

An additional benefit that became payable to a member as a result of current or past fund membership. Form: E.

Reconciliation of payments from assets to be transferred

Where the transferring fund had to pay a death, disability or withdrawal benefit. Form: G.

Section 14(8) transfer

Where both funds are valuation exempt or are beneficiary funds, or one fund is not registered nor required to be registered and the other is valuation exempt. Forms: H, J.

Published by J Law Consulting (Pty) Ltd

J Law Consulting provides specialist legal drafting and consulting services to retirement fund stakeholders and employers. Our team advises on section 14 transfers, fund amalgamations, and FSCA regulatory requirements. Meet our team.