We analyse financial reports tabled with the Financial Services Board to ensure that the organisations remain financially sound and that consumers' reasonable expectations are satisfied in any mergers or transfers.
We analyse actuarial valuation reports, scrutinising the methods and assumptions used, comparing these assumptions against ranges that we deem reasonable, and checking that appropriate action is being taken to manage risk within the institution.
We ensure that the schemes for restoration of financial soundness will achieve their objective within a reasonable period.
We ensure that institutions are taking appropriate steps to remain financially sound following mergers and transfers of business, and that policyholders' reasonable expectations remain satisfied despite the transfer.
We consider applications in terms of section 14 of the Pension Funds Act, to ensure that the scheme of transfer affords full recognition to the rights and reasonable benefit expectations of both remaining and transferring members. In the case of new licences granted to insurers, we may comment on product design, underwriting, reinsurance, reserving and how insurers plan to manage their risks.
We support any litigation through investigating and reporting on the financial soundness of proposals, acting as an expert witness where required. We train colleagues in the Insurance and Pensions departments on technical matters related to their interaction with the reports that we scrutinize.
We assist the National Treasury and South African Revenue Service on actuarial matters. We are directly involved in drafting and issuing sub-ordinate legislation and guidance relating to retirement fund matters.
We are directly involved in drafting and issuing of Directives and Board Notices to the insurance and retirement funds industries. We assist clients with information on what they need to do in order to gain approval for complex schemes involving insurance companies or retirement funds.
In addition, the Actuarial (Pensions) Department also performs some line functions.
Our main departmental objectives are to:
- ensure that legislation and necessary guidance circulars are drafted in order to adequately protect investors and maintain a financially sound industry.
- provide other departments within the FSB with actuarial expertise to fulfil
- engage with various stakeholders in the retirement funds industry on policy and other legislative matters.
- supervise statutory returns of our industries in a professional, efficient and consistent manner.
- keep up to date with international standards and developments by checking our own compliance with international standards and practices.