The Financial Sector Conduct Authority (FSCA) has cancelled 6 757 inactive retirement funds that were found to have no members, assets or liabilities, with most also not having properly constituted boards in line with the Pension Funds Act.

Business Day report notes the deregistration of the affected funds comes after a lengthy cancellations project first initiated by the regulator in 2007, but which was delayed after becoming the subject of litigation, allegations of corruption and three independent investigations.

However, after all legal proceedings related to the matter ended up going in favour of the regulator, the FSCA was on 28 March finally able to release its findings on the deregistration of inactive retirement funds.

The FSCA said that of the 6 757 funds that were cancelled, only 76 had to be reinstated.

Of the 76 funds that were reinstated, 39 funds were cancelled after the publication of their intended cancellation in the Government Gazette.

‘These funds remain categorised as query funds on the FSCA’s system and will be cancelled once their outstanding business has been finalised,’ the regulator said.

The other 37 reinstated funds were subsequently cancelled following the deregistration applications which were submitted by their representatives.

Full Business Day report