Licensing Requirements for Retirement Funds (Beneficiary funds and/or Umbrella Funds)
- Pursuant to Section 5 of the Retirement Funds Act No. 5 of 2005, in order to apply for a license to operate as a retirement fund in the Kingdom of Eswatini, the following requirements are applicable:
- An application as prescribed by the Registrar, for registration of a fund should be submitted in writing to the Registrar by the Principal Officer of the Fund seeking to be registered in terms of the Retirement Funds Act of 2005;
- The application should include the following details:
- Indicate the type of Fund you seek to register;
- Name, address, and contact details of the employer seeking to register the Fund;
- Registered address and contact details of the Fund;
- The application should be accompanied by the following documents:
- Statement of total number of existing members and in the case of a new fund, total number of projected membership;
- Statement of total assets of the fund;
- Statement of additional benefits offered to members;
- The management board's resolution approving the establishment of the retirement fund.
- The management board's resolution approving the name of the retirement fund;
- A management board's resolution approving the appointment of the principal officer;
- A statement of the address of the principal office of the retirement fund and also the postal address and physical address;
- Application for approval of an auditor;
- Application for approval of a valuator;
- Application for approval of an Administrator
- Application for approval of an investment manager
- Corporate governance strategy
- Risk management strategy.
- Investment strategy
- A signed copy of the rules or special rules of the Fund;
- Letter of approval of rules or special rules from the Eswatini Revenue Services;
- Details of the Retirement Fund’s Bank Accounts
- Certificate by a valuator certifying that the Fund Rules are financially sound;
- In the case of an existing fund, financial statements (revenue and expenditure) of the last financial year;
- In the case of an existing fund, an actuarial valuation report of the assets and liabilities, including the principle applied in making the valuation. (The valuator’s name, address, professional qualification, and experience must be furnished in the statement)
- Declaration of Character by the Principal Officer and the Management Board disclosing amongst other things:
- or real Any potential conflicts of interests;
- Their reputation and character including credit worthiness, bankruptcy, fraud, dishonesty, disqualification as a director and insolvency;
- Professional and work conduct including dismissals, disciplinary actions, and litigation; or
- Non-involvement in financial crime such as fraud or money laundering.
- Police clearance certificate for the Principal Officer and the Management Board
- Proof of Professional Indemnity Insurance of the sum of E2,000,000.00 (Two million Emalangeni Only)
- Fidelity Guarantee Cover ceded to the Registrar of the sum of E200,000.00 (Two Hundred Thousand Emalangeni only)
- A non-refundable application fee of E 2000.00. An additional fee of E1000.00 will be charged as a registration fee on approval of the application.
- Application for the approval of an Auditor and Valuator stand at E500.00 per application and E 1,000.00 each for Fund Administrator, Investment Manager and Custodian.
Licensing Requirements of Foreign Retirement Funds
- In terms of the Retirement Fund Act No.5 of 2005 In order to apply for a license to operate as a retirement fund in the Kingdom of Eswatini, the following requirements are applicable:
- An application for registration of a retirement fund should be submitted in writing to the Registrar of Insurance and Retirement Funds by the Principal Officer of the Fund seeking to be registered in terms of the Retirement Funds Act of 2005.
- To apply as a foreign retirement fund, the fund must satisfy the requirements of Section 67 of the Retirement Funds Act, 2005.
Exemptions
- the Registrar may exempt a foreign retirement fund from any or all of the provisions of this Act, other than the provisions of Sections 3 and 5, if the Registrar is satisfied that: -
- the number of members who are ordinarily resident in Eswatini is not a significant proportion of the total membership;
- the rules of the retirement fund are not less favourable to members ordinarily resident in Eswatini than to other members, taking into consideration differences in the conditions of service;
- suitable arrangements exist for ensuring the financial soundness of the fund; or
- through the furnishing of adequate security by the retirement fund or otherwise, the fund will pay in accordance with the rules the benefits promised to members ordinarily resident in Eswatini.
- A foreign retirement fund seeking exemption under this Section shall submit an application for exemption as part of its application for registration under Section 5.
- In addition to the information required under Section 5, the foreign retirement fund shall submit a certificate of registration or other evidence that the retirement fund has been authorised to operate or conduct activities by the entity responsible for regulation or supervision of retirement funds in the jurisdiction in which the retirement fund primarily operates or conducts its activities.
- A foreign retirement fund that is granted an exemption under this Section shall provide the Registrar with copies of all reports and other documents that are required to be deposited with the entity responsible for its regulation or supervision.
- The Registrar may exempt a retirement fund from any or all provisions of this Act, other than the provisions of Sections 3 and 5 if the retirement fund is established by statute.
- An exemption granted under this Section may be subject to any conditions the Registrar deems appropriate, taking into account the purposes of the Act.
- The Registrar may at any time by notice in writing to the fund withdraw in whole or in part any exemption granted under this Section of this Act.
- The application should include the following details:
- Indicate the type of Fund you seek to register;
- Name, address, and contact details of the employer seeking to register the Fund;
- Registered address and contact details of the Fund and Principal Officer;
- The application should be accompanied by the following documents:
- Statement of the total number of existing members and in the case of a new fund, the total number of projected membership;
- Statement of total assets of the fund;
- Statement of additional benefits offered to members;
- A statement of the address of the principal office of the retirement fund and also the postal address and physical address;
- A certified copy of the rules of the Fund;
- In case of an existing fund, annual financial statements of the last financial year;
- In case of an existing fund, an actuarial valuation report of the assets and liabilities, including the principle applied in making the valuation. (Valuator’s name, address, professional qualification, and experience must be furnished in the statement)
- A non-refundable application fee of E 2000.00. An additional fee of E3000.00 will be charged as a registration fee on approval of the application. The registration certificate will be valid for a three-year period.
- The fund is required to be renewed every three years. An application must be submitted, together with a fee of E3000.
Licensing of Retirement Funds (Beneficiary Funds or Umbrella Funds) Administrators
- The application should include the following details:
- The name, registered address and contact details of the company;
- Memorandum and Articles of Association
- Certificate of Incorporation as a proprietary limited [(Pty) Ltd] in terms of the laws of Eswatini.
- Stipulate the Names and physical addresses of the Board of Directors
- An application for approval of a Principal Officer
- A statement of the address of the Chief Executive Officer, Managing Director, Board of Directors, Shareholders and Ultimate Beneficial Owners of the retirement fund administrator and also the postal address and physical address;
- Application for approval to use an abbreviated name (if applicable) for the company accompanied by the approval of the Registrar General for the exclusive use of the name;
- Declaration of Character by the Chief Executive Officer, Managing Director, Board of Directors, Shareholders and Ultimate Beneficial Owners disclosing amongst other things:
- any real or potential conflicts of interests;
- reputation and character including credit worthiness, bankruptcy, fraud, dishonesty, disqualification as a Chief Executive Officer, Managing Director, Board of Directors, Shareholders or Ultimate Beneficial Owners and insolvency;
- professional and work conduct including dismissals, disciplinary actions, and litigation; or
- Non-involvement in financial crime such as fraud or money laundering.
- Police clearance certificate for all directors and principal representatives.
- Application for approval of an auditor;
- Corporate governance strategy risk management strategy
- Details of the Retirement funds administrator’s trust account
- Business plan
- A non-refundable application fee of E 2000.00.
- An application for the approval of an Auditor of E500.00.
- The company/fund’s investment strategy;
- Proof of an unencumbered paid-up share capital of E2,000,000.00 (Two Million Emalangeni).
- Registration fee of E10, 000.00
- A list of the persons who are Chief Executive Officer, Managing Director, Board of Directors, Shareholders and Ultimate Beneficial Owners of the company showing each person’s interest; In addition, we require the following details of all Shareholders, directors, principal officers, and trustees:
- Name, address, nationality, and country of permanent residence,
- Qualifications, work experience, and other professional and/or business interest.
- Full details of reputation and character (creditworthiness, bankruptcy, fraud, dishonesty, insolvency, disqualification as a director, etc.)
- professional and work conduct (dismissals, disciplinary actions, litigation, etc.)
- A Professional Indemnity Insurance of 7.5% of the total assets to be administered and it shall not be less than E2, 000,000.00 (Two Million Emalangeni).
- `Fidelity Guarantee Cover of 20% of the total assets to be administered and it shall not be less than E200,000.00 (Two Hundred Thousand Emalangeni).
- Application for approval of a compliance officer accompanied with his or her curriculum vitae, police clearance, and a declaration of character.
- A comprehensive IT system and a disaster recovery plan.
Approvals of Retirement Funds Service Providers
- Retirement Funds Administrators and Investment Funds Managers
- Pursuant to Regulation 10 (2) of the Retirement Funds Regulations 2008 an application for approval of the appointment of a Retirement Fund Administrator or Investment Manager shall be made using Form RF14A.
- Auditors:
- Pursuant to Section 21 of the Retirement Funds Act 2005 read together with Regulation 4 of the Retirement Funds Regulations, 2008, an application for approval of the appointment of an Auditor shall be made to the Registrar by the Principal Officer using Form RF3.
- Valuators
- Pursuant to Section 22 of the Retirement Funds Act 2005 read together with Regulation 5 of the Retirement Funds Regulations, 2008, an application for approval of the appointment of a Valuator shall be made to the Registrar by the Principal Officer using Form RF5.
