FSCA Cracks Down on Non-Compliant Pension Fund Trustees
- Nexus and Nexus
- Sep 2
- 2 min read
At a recent Institute of Retirement Funds Africa (Irfa) conference, FSCA representative Zareena Camroodien warned that nearly 20% of active trustees have not complied with training obligations. In total, 1 252 trustees have been identified as non-compliant.
While just over 450 of these pension fund trustees have applied for exemptions or extensions, the FSCA intends to take formal action against the remaining 798 who have not taken corrective steps
Camroodien and Deputy Pension Funds Adjudicator (PFA) adjudicator Naheem Essop underscored the fiduciary mandate of trustees—not only to complete mandatory training, but also to ensure employers consistently remit employee retirement contributions
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Alarmingly, as of January 2025, some R5 billion in contributions were outstanding, with approximately 7 700 employers behind on payments to retirement funds
During the 2025 financial year, 82% of the PFA's 10 331 complaints were related to non-payment or delays in withdrawal processing—issues often traceable to contribution arrears
Essop emphasized that trustees will be held accountable in future instances where employers fail or dissolve, thus jeopardizing members’ retirement benefits
At a Glance
Issue | Details |
Identified non-compliant pension fund trustees | 1 252 |
With exemptions/extensions | ~450 |
Facing imminent action | ~798 trustees |
Outstanding contributions | R5 billion, ~7 700 employers in arrears |
Complaints up to 2025 FY | 10 331 total; 82% related to payment/delay issues |
Why It Matters
Pension fund trustees play a vital role in safeguarding retirement funds. Without proper training, they may overlook crucial fiduciary responsibilities—such as ensuring timely contributions and managing investments—placing members’ benefits at risk.
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By stepping up enforcement, the FSCA and PFA aim to shore up governance standards, protect pension fund members, and deter malpractices that could lead to financial losses or systemic disruptions.
What's Next
Pension fund trustees who are still non-compliant should expect swift action. The FSCA’s next moves could range from official warnings to more severe regulatory penalties, while the PFA may further intensify scrutiny over employers delinquent in contributions.
Drive-up accountability and compliance in the pension fund sector may also see the industry adopt tighter oversight, more robust trustee training protocols, and enhanced member protection mechanisms.
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Source: Based on a Moneyweb report by Liesl Peyper, published on 1 September 2025
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