The Retirement Funds Bill, 2022 (the “Bill”) seeks to repeal and re-enact with amendments, the Retirement Funds Act [Cap 27:03] (the “Act”). The purpose of the Bill is to expand and strengthen the Non-Bank Financial Institutions Regulatory Authority’s (“NBFIRA”) oversight authority, to improve governance, safety, soundness, fairness, efficiency, orderliness, and sustainability of retirement funds. The notable changes are as follows:
GOVERNANCE OF FUND ADMINISTRATORS
The Bill establishes a structure for the governance of fund administrators under section 25 of the Bill, which structure was lacking in the Act. In addition to the duties of a fund administrator to maintain the books of accounts and other records of a fund, the Bill provides that a person who produces or gives or causes or knowingly allows to be produced or given, financial statements, reports, or any other document that the person knows or ought to have reasonably known to be false in a material respect is liable to a civil penalty not exceeding P100, 000. [ Read More ]