MEMBERS of the public have been warned to stop investing with companies purporting to offer pension funds but not registered or licensed by the Central Bank of Lesotho (CBL) as the regulator.

This is in order to avoid the risk of incurring losses in respect of which the members of public shall have no recourse if they lose their monies.

This was revealed by the CBL this week after the Pensions Act of 2019 was finally gazetted.

The gazette means that the CBL is in a position to regulate and supervise pension funds administrators and intermediaries as well as occupational, non-occupational and umbrella pension funds.

“The Central bank of Lesotho, as the Regulator of Pension Funds, Pension funds administrators and intermediaries hereby wishes to inform the Pension Funds, Pension Funds Administrators, intermediaries and the general public that the Pensions Act, 2019 has been gazetted,” the CBL revealed in a statement this week.  

All pension funds, pension funds administrators and intermediaries that have been operating prior to the promulgation of the Pensions Act 2019 are advised to approach the CBL to apply for the registration and licensing of their businesses, in compliance with the Pensions Act, 2019.

“Pension funds, pension funds administrators and intermediaries are advised that they should continue to honour their obligations whilst they transition their operations in line with the Act,” the CBL added.

In a past interview with Metro, the CBL clarified that the Pension Fund Act, 2019 was published on 15 November, 2019, and came into force on the said date of its publication as per Section 1 of the Act.

However, it is important to note that, in terms of Section 80 of the Act, a transition period of six months was granted for pension funds to register under the Act after its commencement.