The country’s top financial services watchdog says it is going to crack the whip to ensure pension funds accelerate efforts to drive down costs that eat into people’s retirement savings.
Funds whose costs deviate significantly will have to explain themselves. Makhubela said the regulator will be looking at everything, from administration costs to asset management, consulting and litigation fees, which he said are on the rise, eating further into member’s savings. He said the FSCA will conduct research to get a sense of industry averages. It will be looking at large umbrella funds as these have the economies of scale that the FCSA and National Treasury want to see all funds achieve.
Source: News Formal (newsformal.com)
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