The regulations require that all pension funds, administrators or intermediaries operating in the country be licensed.
These regulations, according to the Central Bank of Lesotho (CBL) set out the requirements for 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.
“The Pension Fund Act, 2019 was published on November 15, 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.
“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,” CBL said last week.
Since the industry will now be regulated post-transition date of March 12, 2021, the regulator emphasised, there is need for compliance be all regulated entities under the Act.
“Actions will be taken as provided in the Act and Regulations. In particular, Section 71 of the Act makes provision for offences and penalties for persons who will fail to comply with the Act,” the CBL also showed.