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CBL cautions public on unregistered pension businesses

CBL Governor Dr Retšelisitsoe Matlanyane


June 1, 2021 2 min read

2 min read


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.


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So in order to facilitate for and regulate registration of Pension Funds under the Act, Parliament published Pension Funds (registration and Licensing) Regulations of 2020.

The regulations require that all pension funds, administrators or intermediaries operating in the country must be licensed.

These regulations, according to the CBL set out the requirements for the registration of pension funds and service providers in the pensions industry and prescribe the steps to be followed, including the forms to be filled for registration.

Section 71 of the Act provides that a person who contravenes or fails to comply with any provision of this Act or any regulation may be liable to an administrative fine as may be imposed by the regulator.

 

 

 

 

 

 

 

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