Many pension funds are finding it difficult to stay abreast of
the reporting requirements imposed on them by Regulation 28.
Inability to source the required information
The level of detail required by the Financial Services Board
(FSB) for reporting is not always readily available from asset
managers. This is caused by a myriad of problems
ranging from system constraints at asset manager level to asset
managers refusing to provide their clients with the underlying
detail, as this could result in their competitors potentially being
able to source this information.
The responsibility for monitoring has been misunderstood
We have noted that many pension funds believe that their benefit
administrator is responsible for monitoring compliance with
Regulation 28. A closer look at many service level agreements has
indicated that in many cases, the administration agreement does not
include a compliance monitoring function.
