The Implications Of Draft Information Circular 2 Of 2015

The Registrar of Pension Funds (the "Registrar") published a draft circular for comment on 27 February 2015 titled "The governance, winding-up and cancellation of the registration of a shell fund or a dormant fund without a board or liquidator" (the "Draft Circular"). When effective, the Draft Circular will have significant implications for pension funds without properly constituted boards of trustees, as well as pension funds that were deregistered in certain circumstances, including at the instance of so-called "authorised representatives" or "section 26(2) trustees" appointed by the Registrar.

Amongst other things, the Draft Circular provides for the following:

• It proposes a new approach to be followed by "dormant funds" (each a fund that is not an active fund or a shell fund and which does not have a properly constituted management board) to establish proper boards in accordance with the Pension Funds Act, 1956 (the "Act"). These methods include: (i)