H.B. 17, 2019.] V and Provident Fun… · providers on providing such notice in terms of any...

Pensions and Provident Funds

V

H.B. 17, 2019.]

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VI


I

PENSIONS AND PROVIDENT FUNDS BILL, 2019

MeMoranduM_______

This is a Bill to provide for the registration, regulation and dissolution of pension and provident funds as well as to repeal the Pension and Provident Funds Act [Chapter 24:09]. In more detail, the individual provisions of the Bill are as follows: Clauses 1and 2

SetouttheshorttitleoftheBillanddefinetermsusedintheBillrespectively.

Clause 3

Outlines the objects of the bill. These are to ensure protection of fund members andbeneficiaries’ interests, stabilityandsecurityof fundsandsustainabilityof thepension sector as a whole.

Clauses 4 and 5

Provide for the responsibilities of the Commissioner and delegation of functions bytheCommissionerrespectively.

Clause 6

AddstotheCommissions’functionsconferredbytheInsuranceandPensionsCommission Act [Chapter 24:21].Thespecificfunctionshavetheoverallconsequenceofensuringsustainabilityandsecurityofthepensionindustry. Clause 7

Enjoins the Commission to exercise its functions under this Act in an impartial, clear and open manner and to observe the provisions of section 194 (basic values and principles in public administration) of the Constitution in the discharge of its functions.

Clause 8

Obligespersonswhowanttoestablishorcarryonthebusinessofafundtoregistertheir Funds and criminalises operation of unregistered funds.

Clause 9

Provides for the electronic and manual registration of funds, factors to be consideredwhendecidingwhetherornotregisterafundandissuanceofacertificateof a fund.

Clause 10

Explainsthelegalstatusoffunds.Uponregistrationafundshallbecomeabodycorporate. Clause 11

Spellsouttheevidentialvalueandperiodofvalidityofacertificateofregistration.Acertificateofregistrationofafundshall,uponitsmereproductionandintheabsenceofproofoffraud,beconclusiveevidencethatalltherequirementsofthisActinrespectof registration and all matters precedent and incidental thereto have been complied with andthatthefundisdulyregistered.Acertificateofregistrationissuedtoafundshallbe valid from the date of issue and shall remain in force until the fund is dissolved or certificateofregistrationisrevokedinaccordancewiththisAct.

(i)


II

Clause 12

Provides for —

(a) circumstancesfordissolutionoffund.afundmaybedissolvedintermsoftherulesofthefundorwheresodirectedbytheCommissionorwherethecertificateofregistrationhasbeenrevoked.

(b) TheappointmentofaliquidatorwhereafundistobedissolvedintermsoftherulesofthefundorwheresodirectedbytheCommission.

(c) Theliquidationprocess.

Clause 13

(a) EmpowerstheCommissiontorevokeacertificateofregistrationofafundifitdiscoversthattheapplicantwillinglyandknowinglymadeafalse statement in the application, or the fund breaches the conditions of registration or contravenes this Act or regulations made in terms of this Act or the fund is merged, wound up or dissolved.

(b) RequirestheCommissiontoobserveprinciplesofnaturaljusticewhenexercising powers of cancellation.

Clauses 14, 15 and 16

These spell out what must be contained in the rules of a fund, enjoin the board of directorsofafundtodiscloseimportantinformationtostakeholdersandprovidefortheamendmentandconsolidationofrulesoffundrespectively.

Clause 17

Providesforthepaymentandremittalofcontributionstothefund.Penalisesnonremittalofcontributionsbyparticipatingemployers.Makescertainpersonscivillyandpersonallyliablefornonremittaloffunds.

Clause 18

Enables persons who cease to be members of a fund and become a member of another fund to transfer to that other fund anybenefitor right towhich theyhavebecomeentitledfromthefirst-mentionedfund.Thefirst-mentionedfundshall,withinthirtydaysafterthememberhasinwritingrequestedittodoso,orwithinsuchlongerperiodastheCommissionmayallow,transferthatbenefitorright,infull,totheotherfund.

Clause 19

Providesfortheminimumbenefitstobeprovidedbyafundtoitsmembersandbeneficiaries.

Clause 20

Providestheminimumamountstobepaidbymembersandparticipatingemployersofeverydefinedcontributioncategoryfund. Clause 21

Spells out what should happen where there is an actuarial surplus in a fund.

(ii)


III

PART V

Clause 22

Enjoins funds to furnish the Commission with postal addresses, electronic mail addressesandphysicaladdressesofregisteredoffices.

Clauses 23, 24, 25, 26 and 27

Dealwiththecomposition,functionsanddutiesoftheboard,qualificationsanddisqualificationstermsofoffice,andthecapacitatingofboardmembers.

Clause 28

Provides for the appointment of a PrincipalOfficer of Fund who shall beresponsibleforthedaytodaymanagementofthefundandforensuringthatthedutiesimposedon thefundby thisActandanyotherActsarecarriedoutefficientlyandeffectively.

Clause 29

Provides for the appointment of auditors, valuators, custodian and fund administratorsandfactorstobeconsideredwhenmakingsuchappointments.

PART VI

Clause 30

DefinestermsusedinthisPart.

Clause 31

Providesthatalltheassetsofafund,includinganypolicyofinsurance,shallbecontrolledandheldinthenameofthefundoranyotherpersonwhoisapprovedbytheCommissionorwhoisamemberofaclassofpersonsapprovedbytheCommission.

Clause 32

Enjoinseveryfundtomaintainsuchfinancialrecordsandanyotherrecordsasarenecessaryforthepurposeofholdingandaccountingfortheassetsandliabilitiesof the fund and to submit to the Commission within three months after the end of its financialyear,auditedfinancialstatements,preparedinaccordancewiththePublicAccountantsandAuditor’sAct[Chapter 27:12]

Clause 33

Enjoins life insurers to maintain separate Pensions Fund and separate accounts relating to the statement of comprehensive income of that insurer in respect of its pension and provident fund business.

Clause 34

Mandatesafundtocauseitsfinancialconditiontobeinvestigatedandreporteduponbyanactuaryasmaybeprescribedfromtimetotime,anduponfinalisation. Clause 35

Provides that a fund shall at all times hold its assets in Zimbabwe in investments which are realisable inZimbabweprovided that theCommissionmay, inwriting,authorise a fund to hold part of its assets in other investments approved by theCommission,subjecttosuchtermsandconditionsasitmayfromtimetotimefixandafundtoinvestallorpartofitsassetsinforeignmarkets,subjecttosuchtermsandconditionsastheCommissionmayfix.

(iii)


IV

Clause 36

Deals with rescue and winding of troubled Funds

Clauses 37 and 38

Provides for the appointment and powers of inspectors for the purpose of assisting theCommission tomonitorandsupervisefunds, tocarryout investigationsand toensure compliance with this Act Clause 39

Spells out action thatmaybe takenbyCommissionupondiscovering illegalconductbyfunds.Theseincludeissuingawarningtothefund;instructiontothefundtoundertakeremedialactionspecifiedintheinstruction,suspensionalloranyofitspension and provident fund business, placing the fund under the management of an interimadministratorandrestrictingthedisposalofthefund’sassets. Clauses 40, 41 and 42

Deal with investigation into affairs of fund where the Commission considers thataninvestigationisnecessaryforthepurposeofprotectingtheinterestsoffundmembers,preventingordetectingacontraventionofthisActoranyotherlaw,procedureon completionof investigation and actionbyCommission following investigationrespectively. Clause 43

Empowers the Commission to demand documents and information to provide the Commissionwithanyrecordorinformationinrelationtoanymatterconnectedwiththebusinessortransactionsofthatfund.AnypersonrequiredtosubmitinformationshallsubmitsuchinformationwithinaperiodstatedintherequestbytheCommissionorwithinsuchfurtherperiodastheCommissionmayallow. Clause 44

EmpowerstheCommissiontorequireunregisteredfundtoprovideinformation. Clauses 45

Empowers the Commission to extend the time limits given in this Act where necessary. Clause 46

Givesstakeholdersrighttoobtaincopiesofortoinspectrecordsandtoobtaininformation from the management. Clause 47

Permits amalgamations, splits and transfers of all or part of the assets and liabilities of a Fund to another Fund.

Clause 48

Reserves the rightof a Fund to terminate the servicesof anyof its serviceprovidersonprovidingsuchnoticeintermsofanycontractualandotheragreementsbetween the fund and its service provider and obliges a service provider whose service hasbeendiscontinuedtocausethefullmembership,financialandstatisticalrecordstobecompiledandpassedontotheprincipalofficerorsuchnewappointeeserviceproviderasadvisedbythefund,notlaterthansixtydaysandensurethetransferofassetsshallbemadewithinninetydays.

(iv)


V

Clause 49 Providesthattheboardofeveryexistingfundthatisadefinedbenefitcategoryfundshallassoonaspossibleafteracurrencyconversiondatecausethefund’sactuarytocalculatethefund’sliabilitiesintheformercurrencytowardsitsmembers,beneficiariesandotherstakeholdersatthecurrencyconversiondateandcausethefund’sactuarytoapportionthefairvalueofthefund’sassetsinthenewcurrencybetweenthemembers,beneficiariesandotherstakeholdersoastoestablish,sofarpossible,thefund’sliabilityinthenewcurrencytoeachofthoseclassesofpersons.

Clause 50 Providesthatdocumentsrequiredtobefurnishedtothecommissionbesignedbytheprincipalofficerandoneotherpersonauthorisedbytheboardtosignthedocument.

Clause 51 Anydocumentcertified,byoronbehalfoftheCommissioner,shallbeadmissibleinevidenceinanycourtasifitweretheoriginaldocument.

Clause 52 Processinanylegalproceedingsagainstafundmaybeservedonthatfundatitsregisteredoffice.

Clause 53 ProvidesforappealstotheMinisterandAdministrativeCourtwithinthetimeandin the manner prescribed in rules of court for the latter

Clause 54 ProvidesthattheCommissionshallsubmittotheMinisterareportinregardtopensionandprovidentfundbusinessinZimbabweduringthepreviouscalendaryearandtheMinistershalllayacopyofsuchreporttoParliament.

Clause 55 Penalises improper use of certain titles.

Clause 56 Createsoffencesandfixestheattendantpenalties.

Clause 57 ProvidesthattheeveryemployeeshallbeliableawhereaFundcommitsanoffenceunderthisAct:unlessitisprovedthatheorshetooknopartinthecommissionoftheoffence.

Clause 58 Indemnifiesmembersandemployeesofthecommissionwheretheyhaveacteddiligentlyandingoodfaith.

Clause 59 Allowsapensionfundtoconvertfromonetypeoffundtoanother.

Clause 60 Requireseveryregisteredpersontoconductitsbusinessandotheroperationsinaccordance with sound administrative and accounting practices and procedures, adhering

(v)


VI

to effective systems of risk-management policies and internal controls includingeffectivefunctionsforriskmanagement,compliance,actuarialmattersandinternalauditandtotakeeffectivemeasurestocombatmoneylaunderingandthefinancingofterrorismasdefinedintermsoftheMoneyLaunderingandProceedsofCrimeAct[Chapter 9:24].

Clause 61 Dealswithserviceofcivilpenaltyorders.

Clause 62 Dealswithadditionaldueprocessrequirementsbeforeserviceofcertaincivilpenaltyorders.

Clause 63 EmpowerstheCommissiontomakeregulations.

Clause 64 Repeals the Pension and Provident Funds Act [Chapter 24:09]. Saves any fund thatwas registered in termsof the repealedAct immediatelybeforetheappointedday.Savesanyorder,notice,application,exemption,approval,permissionorotherthingwhichwaslawfullymade,granted,given,issued,doneorcommencedintermsoftherepealedActandwhich,immediatelybeforetheappointedday,hadorwascapableofacquiringlegaleffect. SCHEDULE(Section29) Deals with regulation of fund administrators and fund managers.


1

PENSIONS AND PROVIDENT FUNDS BILL, 2019_________________

ARRANGEMENTOFSECTIONS

PART I

PreliMinary

Section

1. Short title. 2. Interpretation. 3. Object of Act. 4. Responsibilities of the Commissioner. 5. DelegationoffunctionsbyCommissioner. 6. Additional functions of Commission under this Act. 7. ExerciseoffunctionsbyCommission.

PART II

registration of funds

8. Funds to be registered. 9. Registration of fund. 10. Effect of registration of fund. 11. Conclusivenessandvalidityofcertificateofregistration. 12. Dissolution of fund. 13. Cancellation of registration of fund.

PART III

rules of funds

14. Rules of fund. 15. Communicationwithstakeholders. 16. Amendment and consolidation of rules of fund.

PART IV

PayMents to and froM funds

17. Paymentstofund.18. Transferofaccruedbenefitsandrightsbetweenfunds.19. Minimumbenefits. 20. Minimumcontributions. 21. Actuarial surpluses.

PART V

ManageMent and adMinistration

22. Postaladdress,electronicmailaddressandregisteredoffice. 23. Board of fund. 24. Functions and duties of board.


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25. Qualificationsanddisqualificationsforappointmentasmemberofboard.26. Termsofofficeofmemberofboard. 27. Trainings and assessments. 28. PrincipalOfficeroffund. 29. Auditor, valuator, custodian and fund administrator.

PART VI

financial requireMents

30. DefinitionsinthisPart. 31. Holding of assets of fund. 32. Accountsandfinancialstatements. 33. LifeinsurerstomaintainseparatePensionsFundandseparateaccounts. 34. Actuarial valuation. 35. Investments. 36. Troubled Funds.

PART VII

suPervision and investigation of funds 37. Appointment of inspectors. 38. Powers of inspectors. 39. ActionthatmaybetakenbyCommissionupondiscoveringillegalconductby

fund. 40. Investigation into affairs of fund. 41. Procedure on completion of investigation. 42. ActionbyCommissionfollowinginvestigation.

PART VIII

additional Powers of coMMission

43. Power to demand documents and information. 44. Commissionmayrequireunregisteredfundtoprovideinformation.45. Commissionmayextendtimelimits.

PART IX

general

46. Right to obtain copies of or to inspect documents and to obtain information. 47. Amalgamation and transfers. 48. Termination of service. 49. Currencyconversion.50. RequirementsfordocumentsfurnishedtoCommission.51. EffectofcertificateofCommissionondocuments. 52. Service of process on fund. 53. Appeals.

Section


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54. ReportsbyCommission. 55. Improper use of certain titles. 56. Offences. 57. Liabilityofofficersforoffencesoffund.58. IndemnityofmembersandemployeesofCommission. 59. Conversion of fund. 60. Registeredpersonstoconductbusinessprudentlyandlawfully. 61. Serviceofcivilpenaltyorder. 62. Additionaldueprocessrequirementsbeforeserviceofcertaincivilpenaltyorders. 63. Regulations. 64. Contribution to Pension Protection Fund. 65. Repeal of Cap. 24:09 and savings. Schedule: Fund administrators and fund managers

Section


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Printed by the Government Printer, HarareH.B. 17, 2019.]

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BILLTo provide for the registration, regulation and dissolution of pension and

providentfunds;toprovidefortheadditionalfunctionsoftheInsuranceand Pensions Commission, to repeal the Pension and Provident Funds Act [Chapter 24:09]; and to provide formatters connectedwith orincidental to the foregoing.

ENACTEDbytheParliamentandthePresidentofZimbabwe.

PART I

Preliminary

1 Short title ThisActmaybecitedasthePensionandProvidentFundsAct[Chapter……..].

2 Interpretation (1) In this Act—

“actuarial surplus” in relation to—

(a) a fund that is subject to actuarial valuation, means the excess of thefairvalueofthefund’sassets;overthefund’spast,currentandexpectedfutureliabilities;

(b) a fund that is exempt from actuarial valuation, means the difference between—


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(i) thefairvalueofthefund’sassets;and (ii) the sum of the values of— A. all the accounts held for individual members of the fund,

whethercontributoryorpaid-up;and B. anyinvestmentreserveaccountsetuptofacilitatethe

smoothingofinvestmentreturnscreditedtothemembers’accounts;and

C. anycontingencyreserveaccounts;and D. anyotherliabilitiesofthefund; “actuary”meansapersonwhoisafellowofaninstitute,faculty,societyor

associationofactuariesapprovedbytheCommissionerfromtimetotimeforthepurposesofthisAct;

“actuarial valuation”means an analysismade by an actuary to determinethevalueofthefund’sassetsandliabilities,calculatedbyreferencetoappropriateassumptions;

“appointedday”meansthedateonwhichthisActbecomesoperationaluponpublications;

“auditor” means a person who is registered as a public auditor in terms of the Public Accountants and Auditors Act [Chapter 27:12] or is a member of suchclassofpersonsasmaybeprescribed;

“beneficiary”meansapersondesignatedbyamemberofafund,orbytherulesofthefundtobenefitunderthefund,asmaybeprescribed;

“board”meanstheboardofafundconstitutedintermsofsection23;

“Commission”meanstheInsuranceandPensionsCommissionestablishedbysection 3 of the Insurance and Pensions Commission Act [Chapter 24:21];

“Commissioner” means the Commissioner of Insurance, Pension and Provident Funds appointed in terms of section 19 of the Insurance and Pensions Commission Act [Chapter 24:21];

“contingencyreserveaccount”meansanaccountestablishedinordertoprovideforcontingencies;

“custodian”meansanentitypermittedintermsofsection38oftheSecuritiesand Exchange Act [Chapter 24:25] to take responsibility of the safecustodyofa`fund’ssecurities,financialinstrumentsanddocumentsoftitleofassets;

“deferredpensioner”meansamemberofafundwhoisnotyetentitledtoabenefitbuthaslefttheserviceoftheparticipatingemployer,retainingarighttosuchbenefitsasaredefinedintherulesofthefund;

“definedbenefitcategory”inrelationtomemberbenefits,meansbenefitsthatareguaranteedbythesponsoringemployer,expressedintheformofanannuityorlumpsumcalculation,whicharedeterminedwithreferenceto the employee’s duration of service, salary and an actuarial factor,regardlessofinvestmentperformanceofthefund;

“definedcontributioncategory”inrelationtomemberbenefitsmeansabenefiton retirement determined as—


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(i) thefixed rate of contributions paid by themembers andby theparticipatingemployersonbehalfofthemembers,wherethefixedratesaredefinedintherulesofthefund;and

(ii) suchinvestmentreturnsandanyshareofactuarialsurplusortransferfromacontingencyreserveaccountastheboardmaydetermine;

lesssuchexpensesasshallbeprovidedforintherulesofthefund;

“depositadministrationpolicy”meansapolicyofinsuranceissuedbyaninsurerto a fund in terms of which—

(a) the insurer maintains a deposit account in respect of the fund to which—

(i) iscreditedallamountspaidbythefundtotheinsurer;and (ii) is debited all amounts withdrawn from the fund to provide

benefitsintermsoftherulesofthefundandsuchadministrativeand other expenses as are agreed upon between the fund and theinsurerfromtimetotime;and

(iii) is credited or debited either— A. interest at the rate agreed upon between the fund and the

insurer and such bonuses as the insurer declares from timetotime;or

B. suchinvestmentincomeandcapitalprofitsorlossesasare agreed upon between the fund and the insurer as being fortheaccountofthefund;

and

(b) theliabilityoftheinsureratanygiventime,otherthaninrespectofbenefits,ifany,actuallypurchasedbythefundfromtheinsurer,islimited to the amount standing to the credit of the deposit account referred to in paragraph (a) after all credits and debits have been takenintoaccount;

“depositadministrationscheme”meansaninsurancecompanyschemewhichisoperatedbymeansofadepositadministrationpolicy;

“employee”,inrelationto—

(a) acompany,includesadirectorofthecompanywhosetime,intheCommission’sopinion,iswhollyoralmostwhollyoccupiedintheserviceofthecompany;

(b) a partnership or other association of persons, includes a member ofthepartnershiporassociationwhosetime,intheCommission’sopinion,iswhollyoralmostwhollyoccupiedintheserviceofthepartnershiporassociation;

“sponsor”meansapersonwhoestablishesafund;

“externalfund”meansafundwhoseheadofficeisoutsideZimbabwe;

“fair value”, in relation to an asset of a fund, means an amount at which an assetcouldbeexchangedbetweenknowledgeableandwillingpartiesinanarmslengthtransaction;


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“fund”meansanyschemeorarrangementwhoseobjectistoprovidebenefitsfor persons who are or have been members of the scheme or arrangement upontheirretirementonaccountofageorill-health,whetherornotthescheme or arrangement—

(a) also provides benefits for dependants or nominees of deceasedmembers;or

(b) continuestoadmitmembersortoreceivecontributions;

andincludesanyfundestablishedbyorintermsofanyotherenactment:

Provided that a scheme or arrangement which is established to benefitonlyonememberorhisorherdependantsshallnotberegardedasafund;

“fundadministrator”aperson,whointermsofthisActispermittedtocarryonbusiness that includes the provisionof day to day administration,management, ensuring timely payment of contributions and benefits,secretarial services and advising the fund on strategic fund matters including proper asset liability allocation decisions and anymattersconnectedwithorincidentaltopensionsstatutesasmaybeprescribed,toafundonbehalfofitsboard,pursuanttoacontractorotherarrangement;

“fundmanager”meansapersonappointedbythemembersoftheboardtoadvise on the investment of the assets of the fund in accordance with such termsandconditionsofserviceasmaybeprescribedintheinstrumentofappointmentandaccreditedunderthisAct;

“hybridbenefit category”means a fundwithwhosebenefit structure is acombinationofdifferentbenefitscategories;

“independentexpertmember”meansamemberofaboardappointedbyvirtueof him or her having relevant expertise, and who does not have a material orpecuniaryrelationshipwiththefundorrelatedpersons,exceptsittingfees;

“inspector”meansapersonappointedbytheCommissionintermsofsection37,toinspectandexaminethebooksofaccounts,records,returnsoranyaspectofafund;

“Interimadministrator”meansapersonappointedbytheCommissiontoensurethe management, control and conduct of the affairs of a fund in place of themembersoftheboard,orfundmanagerofthefund;

“investmentreserveaccount”,inrelationtoadefinedcontributioncategoryfund,meansanaccountestablishedtocompensateforthefluctuationin the value of invested assets for the purpose of smoothing investment returns;

“insurance company scheme”means a schemewhich provides for theestablishmentofafundanditsoperationexclusivelybymeansofoneormorepoliciesofinsuranceissuedbyaninsurer;

“insurer” means a person registered as an insurer in terms of the Insurance Act [Chapter 24:07];

“internalfund”meansafundwhoseheadofficeisinZimbabwe;


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“life insurer” means an insurer which carries on life insurance business as definedintheInsuranceAct[Chapter 24:07];

“member” in relation to a fundmeans any personwho is admitted to themembershipofaretiredbenefitscheme;

“member’sindividualaccount”,inrelationtoadefinedcontributioncategorymemberofafund,means,theamountofthemember’saccountdeterminedinaccordancewiththeformulaapprovedbytheCommission;

“minimum individual reserve”, in relation to a member of a fund, means the amount determined in accordancewith the formula approved by theCommission;

“minimum pension increase” means the amount determined in accordance with theformulaprovidedforintheapprovedbytheCommission;

“Minister”means theMinister responsible for Finance and EconomicDevelopmentoranyotherMinister towhomthePresidentmay,fromtimetotime,assigntheadministrationofthisAct;

“officer”,inrelationtoafund,meansanypersonwhoisemployedbythefund;

“participating employer”, in relation to a fund,means an employerwhocontributestothefundintermsofitsrules;

“pension”includesanannuityacquiredthroughafund;

“pension fund” means a fund whose principal object is to provide for the paymentofapensiontoapersonwho,onhisorherretirement,isorhasbeenamemberofthefund;

“pensioner”, in relation to a fund, means a person who is in receipt of a pension paid from the fund, whether or not the person is or was a member of the fund;

“principalofficer”,meansapersonappointedintermsofsection28(1)tobethefund’sprincipalofficer;or

“providentfund”meansanyfundtheprincipalobjectofwhichistoprovideforthepaymentofalumpsumbenefittoapersonwhoisorhasbeenamemberofthefunduponhisorherretirement;

“registeredoffice”meansthefund’sregisteredofficereferredtoinsection22;

“reserveaccount”,inrelationtoafundmeansacontingencyorinvestmentreserveaccountasthecasemaybe;

“retirement” means—

(a) retiringonaccountofage,asspecifiedinthefundrules,whetherornotthereisaterminationofemployment;or

(b) the termination of employment on the grounds of ill-health oranyothergroundwhich is regarded,under the rulesof the fundconcerned,asconstitutingretirement;

“retirementannuityfund”meansafundwhich—

(a) providesforthepaymentofapensiontoapersonwhoisorhasbeenamemberofthefundonhisorherretirement;and


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(b) is operated either as an insurance company scheme orwithoutpayment of commission to any person for the introduction ofbusiness;

“return” includes—

(a) allaccountsrequiredbysection32;and

(b) anyreportbythevaluatororauditorofafund;and

(c) anydocumentandinformationwhichafundisrequiredbyorintermsofthisActtofurnishtotheCommission;

“rules”, in relation to a fund, means the rules applicable to the fund, including— (a) any document by or in terms ofwhich the fund is established,

governed,administeredormanaged;and

(b) provisions relating to the conduct of the business of the fund, the benefitswhichmaybegrantedfromthefundandthecontributionswhicharepayabletothatfund;

“self-administeredfund”meansafund,whichisnotaninsurancecompanyscheme;

“stakeholder”,inrelationtoafund,meansanyonewhohasinterestintheaffairsofthefund;

“transfer value”means the amount of a benefit or right that is ormaybetransferredfromonefundtoanotherintermsofsection18;

“valuator” means —

(a) anyactuary;or (b) amemberof suchclassofpersonsasmaybeprescribedby the

Commission. 3 Objects of this Act (1) The objects of this Act shall be to—

(a) ensureprotectionoffundmembersandbeneficiaries’interests;

(b) ensuresecurityoffunds;

(c) ensuresustainabilityofthepensionsectorasawhole.

(2) This Act shall be construed in such manner as best ensures the attainment of its objects referred to in subsection (1).

(3)ThisActshallprevailoveranyotherenactmentinconsistentwithit.

4 Responsibilities of Commissioner

TheCommissioner shall, in consultationwith theCommission’sBoard, beresponsibleforcarryingouttheprovisionsofthisActandtoexercisethefunctionsand powers conferred upon the Commission in terms of this Act.

5 Delegation of functions by Commissioner (1) Subject to the Insurance and Pension Commission Act [Chapter 24:09], the CommissionermaydelegatetoanyofficeremployedintheCommissionanyfunction


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that isconferredor imposeduponhimorherbythisAct,other thanthispowerofdelegation.

(2)Anofficertowhomafunctionhasbeendelegatedintermsofsubsection(1)shallexerciseitsubjecttotheCommissioner’sdirections.

(3) A delegation in terms of subsection (1)—

(a) mayberevokedormodifiedbytheCommissioneratanytime;and

(b) shallnotprecludetheexercisebytheCommissionerofthefunctionsodelegated.

(4)AnythingdonebyanofficerintheexerciseofafunctiondelegatedtohimorherbytheCommissionerintermsofsubsection(1)—

(a) maybesetasideorrevised,subjecttothisAct,bythatofficerorbytheCommissioner;and

(b) shallbedeemed,untilsetaside,tohavebeendonebytheCommissioner

(5) This section shall be construed as being additional to, and not as derogating from,theCommissioner’spowersofdelegationunderanyotherlaw.

6 Additional functions of the Commission under this Act

(1) In addition to its functions conferred by the Insurance and PensionsCommission Act [Chapter 24:21], the Commission shall have the following functions—

(a) topromoteandprotectmembersandbeneficiaries’rights;

(b) toregisterandde-registerfundadministrators;

(c) toregulatetheoperationsoffundadministrators;

(d) to provide for the management of troubled funds, provident funds and fundadministratorsandtheirdissolution;

(e) to supervise the establishment, administration and management and operationoffunds;and

(f) to issue— (i) guidelines;or (ii) directives;or (iii) statementsofprudentnorms;

fortheproperadministrationandmanagementoffunds; (a) topromotethedevelopmentofthepensionindustry; (b) toensuresustainabilityandsecurityofthepensionindustry; (c) toadvisetheMinisteronallmattersrelatingtodevelopmentandoperation

ofthepensionindustry; (d) topromotefinancialliteracyandpublicawarenessofthepensionindustry;

and (e) toexecuteanyotherfunctionthatwillpromotetheachievementofthe

objects of this Act.

(2)Forthepurposeofcarryingoutitsfunctions,theCommissionmayexerciseanyorallofthefollowing—


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(a) conductaninvestigationorinquiryrelevanttothepensionindustry;and

(b) inspectandexaminerecordsorpremisesofaregisteredpersonorfund;and

(c) searchthepremisesofanyregisteredpersonoranypersonsuspectedofcarryingonthebusinessofafund,andseizeanyrelevantdocumentsorrecords.

7 Exercise of functions by Commission

(1) The Commission shall exercise its functions under this Act in an impartial, clear and open manner and shall observe the provisions of section 194 of the Constitution in the discharge of its functions.

(2) In the exercise of its functions under this Act, the Commission shall—

(a) adopt fair, transparent and consistent measures in the regulation and supervisionoffunds;

(b) create the necessary environment for the establishment, growth anddevelopmentoffunds;

(c) adoptmeasurestominimiseconflictsofinterestanddisputesbetweenstakeholdersinthepensionsindustry;and

(d) observedueprocessandtherulesofnaturaljustice;

(e) do all such things as are calculated to facilitate or are incidental or conducive to the performance of the function of the Commission in terms of this Act.

(3)Beforereachingadecisionthataffectsorislikelytoaffecttherightsorinterestsofanyperson,theCommissionshall—

(a) notifythepersonofthenatureofthedecisiontobemadeandthefactorsitmayconsiderwhenmakingthedecision;and

(b) wherenecessary,allowthepersonaccesstotheinformationavailabletotheCommissioninregardtothematterunderconsideration;

(c) givethepersonanopportunitytomakerepresentationsinthematter;

(d) takeintoaccountanyrepresentationsthatthepersonmaymakeinthematter.

(4) Where theCommission hasmade a decision or taken any action thatadverselyaffectstherightsorinterestsofanyperson,theCommissionshall,inwritingprovide that person, with reasons for the decision or action.

(5)TheCommissionmayco-operatewithrelevantauthoritiesforpurposesofenhancing the proper discharge of its functions.

PART II

registration of funds

8 Funds to be registered

(1)Nopersonshallestablishorcarryonthebusinessofafundunlessthatfund is registered.


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(2)Anypersonwhocontravenessubsection(1)shallbeguiltyofanoffenceandliabletoafinenotexceedinglevelfourteenortoimprisonmentforaperiodnotexceedingtenyearsortobothsuchfineandsuchimprisonment.

9 Registration of fund

(1)Apersonwhowishestoapplyfortheregistrationofafundshallsubmitto the Commission an application for such registration in the prescribed form. (2) Where, after considering an application for the registration of a fund, the Commissionissatisfiedthatthefundisorwillbebasedonsoundfinancialprinciplesandthefund’srulesareconsistentwiththisActtheCommissionshallregisterthefundand—

(a) issuetothefundacertificateofregistrationintheprescribedform;and

(b) returntothefundacopyoftherulesendorsedbytheCommission.

(3) Where, on consideration of an application for the registration of a fund, theCommissionisoftheopinionthatanyrecordsubmittedtoitdoesnotcomplywiththerequirementsofthisActorbyreasonofanyomissionormisdescriptionhasnotbeendulycompletedorcontainsanyerror,alterationorerasure,theCommissionmayrefusetoregisterthefundorinformthefundspecifyingtheinconsistencies,errorsoromission and shall return the record to the fund for reconsideration and amendment.

10 Effect of registration of fund

(1)Ontheregistrationofafund,thefundshallbecomeabodycorporatecapable,initsregisteredname,ofsuingandbeingsuedandofdoingeverythingnecessaryorincidental to the exercise of its powers on the performance of its functions under this Act.

(2)Notwithstandinganythingtothecontraryinanylaw,constitutionorruleson the registration of a fund—

(a) alltheassets,rights,liabilitiesandobligationspertainingtothefund’sbusiness shall be deemed to be assets, rights, liabilities and obligations ofthefundtotheexclusionofanyotherperson;

(b) nopersonshallhaveanyclaimontheassetsorrightsorberesponsibleforanyliabilitiesorobligationsofthefund,exceptinsofarastheclaimhasarisenortheresponsibilityhasbeenincurredinconnectionwithatransactionrelatingtothefund’sbusiness;

(c) theassets,rights,liabilitiesandobligationsofthefund,includinganyassetsheldbyanypersonintrustforthefund,asexistingimmediatelybefore its registration, shall vest in and devolve upon the fund.

11 Conclusivenessandvalidityofcertificateofregistration

(1)Acertificateofregistrationofafundshall,uponitsmereproductionandintheabsenceofproofoffraud,beconclusiveevidencethatalltherequirementsofthis Act in respect of registration and all matters precedent and incidental thereto have beencompliedwithandthatthefundisdulyregistered.

(2)AcertificateofregistrationissuedtoafundshallbevalidfromthedateofissueandshallremaininforceuntilthefundisdissolvedorcertificateofregistrationisrevokedinaccordancewiththisAct.


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(3) Subject to the provisions of this Act, the rules of a fund shall be binding on thefund,itsparticipatingemployers,membersanditsofficers,andonanypersonwhoclaims under the rules or whose claim is derived from a member or former member of the fund.

(4) Notwithstanding subsection (1) where the rules of a fund are inconsistent with this Act, the provisions of this Act shall prevail.

12 Dissolution of fund

(1) In this section—

“court”meanstheMagistratesCourtunlesstheclaimexceedsthecourt’scivilmonetaryjurisdictionundertheMagistratesCourtAct[Chapter 7:10].

(2) Subject to this section, a fund—

(a) maybedissolvedintermsoftherulesofthefund;

(b) shallbedissolvedwheresodirectedbytheCommissionintermsofsection36;

(c) shallbedissolvedwherethecertificateofregistrationhasbeenrevokedin terms of section 13.

(3) Where a fund is to be dissolved in terms of subsection (2)(a) and (b), a liquidatorshallbeappointedinthemannerprovidedforintherulesofthefundor,wheretherulesmakenosuchprovisionorwhereaprovisionhavingbeenmade,itbecomesimpracticabletoimplementit,inthemannerdirectedbytheCommission,thefollowingprovisionsshallapply—

(a) theliquidator,withtheapprovaloftheCommission,shalldeterminethedateofliquidationandtheperiodofback-dating,ifany,forthepurposeofincludinginthecalculationsinconnectionwiththeliquidationthosemembers who during that period resigned or were discharged and who shallbedeemedtobemembersforthepurposesoftheliquidation;

(b) untiltheliquidationiscompleted,theprovisionsofthisActshall,asfaraspracticable,continuetoapplytothefundasiftheliquidatorweretheprincipalofficerofthefund;

(c) everyclaimagainst thefundshallbeprovedtothesatisfactionof theliquidator,subjecttoarightofappealtothecourt,andtheliquidatormayrequireanyclaimtobemadeonaffidavit;

(d) thevaluatorshallsubmittotheliquidatorareportshowingtheproportionof the amount available for distribution that the valuator recommends shouldbeappliedforthebenefitofeachbeneficiary:

Provided that if the fund has not appointed a valuator, the amount tobeappliedforthebenefitofeachbeneficiaryshallbedeterminedbytheliquidatororavaluatorappointedbytheliquidatorspecificallyforthis purpose.

(e) theliquidatorshall,afteravaluationbyavaluatorandassoonaspossible,lodge with the Commission a list of the assets and liabilities of the fund certifiedbyhimorherascorrectandaschemesettingoutthemannerinwhich he or she proposes to realise the assets of the fund, to discharge the liabilitiestopersonsotherthanmembersandbeneficiariesandtomeettheexpensesofliquidation;


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(f) the liquidator shall submit the report in termsofparagraph (d) to theCommission with the estimate of the total amount available for distribution and recommendation as to the manner in which the amount should be appliedforthebenefitofeachmemberorbeneficiary;

(g) thedocumentssubmittedbytheliquidatorintermsofparagraph(f)shalllieopenforinspectionbyinterestedpartiesforthirtydaysattheregisteredofficeofthefundandinanyothermannerallowedbytheCommission;

(h) the Commission shall, at the expense of the fund, cause a notice to be published in the Gazette and in a newspaper circulating in the district or inanyothermediaapprovedbytheCommission—

(i) specifying the periodduringwhich and the places atwhich thedocuments referred to in paragraph (f) shall lie open for inspection intermsofparagraph(g);and

(ii) callinguponeveryinterestedpersonwhohasanyobjectiontothemethodofdistributionrecommendedbytheliquidatortolodgehisor her objection in writing with the Commission within such period asmaybespecifiedinthenotice,beingatleastfourteendaysfromthelastdayonwhichthedocumentslieopenforinspection;

(i) if no objection is lodged with the Commission in terms of paragraph (h), theCommissionshalldirecttheliquidatortocompletetheliquidationinaccordancewiththeschemerecommended;

(j) if an objection is lodged with the Commission in terms of paragraph (h), the Commission shall consider the objection and, where appropriate, amendtheschemeandthereaftershalldirecttheliquidatortocompletethe liquidation inaccordancewith the schemeas recommendedorasamended,asthecasemaybe;

(k) theCommissionmaygivetheliquidatorsuchdirectionsrelatingtotheliquidationasitdeemsfitandsuchdirectionsshall,subjecttoparagraph(l),bebindingupontheliquidator;

(l) withinfourteendaysafterreceivingadirectionfromtheCommissionintermsofparagraph(k),theliquidatorshallsendacopyofsuchdirectiontoeverymember,beneficiaryandcreditorofthefund,andtheliquidatororanypersonaggrievedbythedirectionmayapplyforrelieftothecourtwithin twenty one days after the directionwas communicated to theliquidator;

(m) inanapplication referred to inparagraph (l), thecourtmay set asideoralterthedirectionormakesuchotherorderasitdeemsfit,andtheCommissionandtheliquidatorshallcomplywithanysuchorder;

(n) withinthirtydaysafterthecompletionoftheliquidationofthefund,theliquidatorshalllodgewiththeCommissionafinalaccountsignedandcertifiedbyhimorherascorrectandshowingthemannerinwhichtheassets of the fund have been realised and distributed.

13 Cancellation of registration of fund

(1)TheCommissionmayrevokeacertificateofregistrationofafundif—

(a) it discovers that the applicantwillingly andknowinglymade a falsestatementintheapplication;or


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(b) thefundbreachestheconditionsofregistration;or

(c) the fund contravenes this Act or regulations made in terms of this Act.

(d) the fund is merged, wound up or dissolved.

(2) Where the revocation is in terms of subsection 1(a), (b) or (c), the Commission shallgive theboardmembersofa fund thirtydays’notice inwritingspecifyingthereasonsfortheintendedrevocationofcertificateofregistration.

(3)TheCommissionshall,beforerevokingacertificateofregistrationconsideranywrittenrepresentationmadebythefundopposingtherevocation.

(4)TheCommissionshallrevokethecertificateofregistrationofafundif—

(a) the members of the board of a fund have not opposed the revocation withinthethirtydaysreferredtoinsubsection(2);or

(b) theCommissionisnotsatisfiedbytherepresentationmadebythemembersof the board of the fund under subsection (3), shall put it in writing, with reasons for the decision or action:

Provided that before revocation, the Commission shall— (i) notify themembers andbeneficiaries of the fundof the

proposedrevocationofthecertificateofregistration;and (ii) that provisions have been made for the protection of

members’andbeneficiaries’interests.

(5)Therevocationofacertificateofregistrationshallnotprejudicetherightsandinterestsofmembersandbeneficiariesofthefund.

(6)Where the certificate of registration is revoked, theCommission shallcause a notice to be published in the Gazette and in a newspaper having an appropriate circulationorinanyothermediaapprovedbytheCommission.

PART III

rules of fund

14 Rules of fund

(1) The rules of a fund—

(a) shallstatethenameofthefund;and

(b) shallprovidefor thefollowingandanyotherrequirementsasmaybeprescribed—

(i) themembershipofthefund; (ii) thecontributions tobepaid to the fund,whether compulsoryor

otherwise; (iii) theproportionofthetotalcontributionsattributabletoanypurpose,

including but not limited to the following— A. themembers’accumulatedcredit;or B. administrationexpenses;or C. grouplifeassurancepremium;or D. funeralassurancepremium;


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(iv) the policywith regard to increases for pensioners and deferredpensioners;

(v) the requirement that no lump-sumpensionbenefitswill be paidintoabeneficiary’saccountwithoutpriornoticeandconsentofthemember;

(iv) thebenefitstobepayablefromthefund; (vii) theindexationofpensionfundbenefitsinlinewithchangingvalues

ofassets; (viii) theconditionsunderwhichaparticipatingemployercontributing

to a fund can exit the fund, where the fund has more than one participatingemployer;

(ix) theconstitutionoftheboardfund; (x) the procedure for the election, appointment of the board, voting

rightsandquorumrequiredandthetermsofofficeofmembersoftheboardofthefund;

(xi) theproceduretobefollowedatmeetingsoftheboardofthefund; (xii) thepowersoftheboardofthefund; (xiii) theappointmentofserviceproviders; (xiv) the dissolution of the fund, including the appointment and powers

ofaliquidator; (xv) theamendmentorrepealoftherules; (xvi) theconditionsorcircumstancesthatrequirethefundtobepaidup; (xvii) theallocationortreatmentofactuarialreserves; (xviii) policiesandproceduresmeanttoensurethatfitandproperstandards

aremetonanongoingbasis;and (xix) the procedures for independent performance assessment of members

oftheboardofthefund; (xx) theprocedureforrecordkeepingofexistingmembersandmembers

who have exited the fund, outlining the time period within which to keeprecordsofmemberswhohaveexitedthefund.

(2) Subject to this Act, the rules of a fund shall be binding on— (a) thefund;and (b) anyparticipatingemployerandthemembersandofficersof thefund;

and (c) anypersonwhoclaimsundertherulesorwhoseclaimisderivedfroma

person claiming under the rules.

15 Communication with stakeholders

(1) A fund shall, at its own expense, provide members with the following information—

(a) acopyoftherulesofthefunduponjoiningthefund,andofanyamendmenttothemasandwhensuchamendmentshavebeenregistered;and


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(b) withinsixmonthsaftertheendofthefinancialyearoranyothershorterperiod asmaybe prescribed, the individualmembers’ annual benefitstatementwiththeminimumdisclosuresasmaybeprescribedfromtimetotime;and

(c) suchotherinformationasmaybeprescribed.

(2)Afundshall,withinthreemonthsandatitsownexpense,makeaccessibleto members the following information—

(a) acopyofthefund’sannualfinancialstatements;and

(b) acopyofeveryvaluationorotherreportmadebythefund’svaluator;and

(c) detailsofanyreservesetasideformemberswhentheyleavethefund;and

(d) anassessmentofthefund’sinvestmentperformance;and

(e) thefund’sinvestmentpolicystatement;and

(f) suchotherinformationasmaybeprescribed. (3)Theboardshallconveneameetingbygivingallmembersandbeneficiariesreasonable notice of the time, place and of the purpose of the meeting and ensure that thetimeandplaceofthemeetingshallbereasonablyconvenientfortheattendanceofmembersandbeneficiaries.

(4)Inadditiontoanyothermeetingsitisrequiredtoconvene,theboardoftheFund shall be obliged to convene a meeting prior to—

(a) changinganadministrator;

(b) conversionfromonecurrencytotheother;

(c) conversion fromdefinedbenefit todefinedcontributionor suchotherconversion;

(d) anyotherchangethatsignificantlyaffectstherightsofmembers;

(5)Thefundshallnotbeobligedtoholdanymeetingexceptasprovidedinterms of this Act and the rules of the fund.

(6)Unless otherwise provided in the rules of the fund, at anymeetingofmembersandbeneficiariesofthefund—

(a) toconstituteaquorum,thereshallbepresentinpersonorbyproxy,inwriting,membersorbeneficiariesexceedingfiftyper centum of the total members;

(b) the chairperson of the fund shall be the chairperson of the meeting or, in the absence of a chairperson or vice chairperson, the meeting shall elect itsownchairperson;

(c) the chairperson shall not have casting vote.

(7)Everyfundshallcauseminutesofallproceedingsofmeetingsofitsmembersandbeneficiariestoberecordedandkeptforthatpurpose,andanysuchminutes,ifpurportingtobesignedbythechairpersonofthemeetingorofthenextsucceedingmeeting, shall be evidence of the proceedings and evidence that the meeting was properlyconvenedandconducted.


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(8)TheCommissionmaysendrepresentativestothegeneralmeetingreferredto in subparagraph (4) above but such representatives shall have no voting rights.

16 Amendment and consolidation of rules of fund

(1)Subjecttothissection,therulesofafundmaybeamendedorrepealedatanytimeinaccordancewiththisActandtheprocedureprovidedforintherulesofthefund.

Provided that no such amendment or repeal shall be valid until it has been approvedbytheCommissionandregisteredintermsofsubsection(4).

(2) Where the board passes a resolution approving the amendment or repeal of anyruleofafund,theprincipalofficerofthefundshall,withinfourteendaysaftertheresolution was passed, submit two copies of the resolution to the Commission, together with—

(a) acertificatesignedbytheprincipalofficercertifyingthattherulesofthefundapplicabletotheamendmentorrepealhavebeencompliedwith;and

(b) astatementsettingoutthereasonsfortheamendmentorrepeal;and

(c) if the amendmentor repeal affects thefinancial positionof the fund,acertificatebythefund’sactuaryor,ifthefundhasnoactuary,byitsauditor, statinghow the fund’sfinancial soundness has been affectedbytheamendmentorrepealhavingregardtotherateandpaymentofcontributionsbytheemployerand,ifthefundisnotfinanciallysound,indicating what arrangements will be made to bring the fund to a sound financialcondition:

Provided that where an electronic copy is filed with the

Commission,asinglecopyshallbefiledwiththeCommission. (3)Aprincipalofficerofafundwhofailstocomplywithsubsection(2)shallbeguiltyofanoffenceandliabletoacategory1civilpenalty. (4)IftheCommissionissatisfiedthatanamendmentorrepealoftherulesofafund is consistent with this Act, it shall register the amendment or repeal and return to theprincipalofficerofthefundacopyoftheamendmentwiththedateofregistrationendorsed thereon:

Provided that if any such amendment or repeal has the effect of reducinganybenefitthathasaccruedtoamemberinrespectofhisorherservicepriortotheamendmentorrepeal,theCommissionmayrefusetoapprovetheamendmentorrepeal.

(5)IfatanytimetheCommissionconsidersthattherulesofafundrequiretobe amended for the purpose of ensuring compliance with this Act, it shall direct the fundtoamendthemwithinsuchperiodastheCommissionmayspecify,andthefundshallcomplywiththedirection:

Providedthatthefundmaylimittheapplicationofanysuchamendmenttopersonswhobecomemembersandbeneficiariesofthefundaftertheeffectivedateof the amendment, and the Commission shall not regard the rules of the Fund as so amendedasbeinginconsistentwiththisActsolelyonthegroundthattheamendmentdoesnotapplytopersonswhoweremembersandbeneficiariesbeforethatdate.

(6)Ifafundfailstocomplywithadirectiongiventoitundersubsection(5),theprincipalofficershallbeguiltyofanoffenceandliabletoacategory1civilpenalty.


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(7)Whereadirectionundersubsection(5)isgiventoanyfundestablishedbyanyotherlawthatisnotconsistentwiththisAct,thisActshalltakeprecedence.

(8)Afundshallaftereveryamendmentconsolidateitsrules,andinthateventtheprincipalofficershallforwardtotheCommissionacopyoftheconsolidatedrulesand,iftheCommissionissatisfiedthattheconsolidatedrulesaresimilartotheexistingrulesofthefund,theCommissionshallregisterthemandreturnacopyofthemtotheprincipalofficerwiththedateofregistrationendorsedonthem,andsuchconsolidatedrulesshallthereupontakeeffectfromthedateoftheirregistration.

(9) An amendment of the rules of a fund which has the effect of reducing, suspendingordiscontinuinganycontributionstothefundshallnotaffectanyperson’sliabilitytopayacontributionwhichbecamepayablebeforethedateoftheresolutionwherebytheamendmentwasmade,irrespectiveofthedateonwhichtheamendmentmayhavetakeneffect.

(10)Notwithstandinganyotherprovisionofthissection,whenamendingitsrules,afundshallpaydueregardtothevestedrightsofstakeholdersofthefund.

(11) A fund established in termsof any collective bargaining agreementordeterminationpublished in termsof theLabourAct [Chapter 28:01], or a fund established by or in termsof any enactment, other than theLabourAct [Chapter 28:01],shallallowinitsrulesforaparticipatingemployer,todiscontinuehisorherparticipation, or not participate within such fund, and set up a separate fund for his orheremployeesonconditionthattheseparatefundprovidesbenefitsandconditionswhich are more favourable than a fund established in terms of this subsection.

Provided that theCommissionmay exempt a participating employer fromcomplyingwith this subsectionwhere, after receiving representations from theparticipatingemployer,theCommissionisoftheopinionthatsuchexemptionistothebest interest of the fund members.

PART IV

PayMents to and froM fund

17 Payments to fund

(1)Notwithstanding anything to the contrary in the rules of a fund, everyparticipatingemployershallpaythefollowingamountstothefundinfull—

(a) anycontributionwhich,intermsoftherulesofthefund,theemployerisrequiredtodeductfromtheremunerationofamember;and

(b) anycontributionwhichtheemployerisliabletopayintermsoftherulesof the fund.

andinconnectionwiththosepaymentstheemployershallprovidethefund,eitheratthetimeofpaymentorwithinfourteendaysaftertheendofthemonthinrespectofwhichthecontributionswerepayable,withsuchinformationasmaybeprescribed.

(2)Notwithstandinganycollectivebargainingagreementoranyarrangementtothecontrary,allcontributionstothefundshallbepaiddirectlytothefundunlessanalternativehasbeenapprovedbytheCommission.

(3)Everyparticipatingemployershall,notlaterthanfourteendaysaftertheendofthemonthinrespectofwhichthecontributionispayable,remitallcontributionsthatarepayabletoafundintermsofitsrules.


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(4)Anyparticipating employerwho fails to remit contributionswithin theperiodreferredtoinsubsection(3)shallbeguiltyofanoffenceandliabletoacategory1civilpenalty. (5)Whereaparticipatingemployer fails to remitcontributions in termsofsubsection(3),thePrincipalOfficershallreporttotheCommission,withinsevendaysaftertheexpirationofthefourteendaysreferredtoinsubsection(3). (6)AnyPrincipalOfficerwhofails toreport totheCommissionwithintheperiodreferredtoinsubsection(5)shallbeguiltyofanoffenceandliabletoacategory1civilpenalty. (7)Ontheconvictionofaparticipatingemployerforanoffencewhichconsistsofafailuretopayanycontributionintermsofthissection;thecourtconvictingsuchparticipatingemployershall, inaddition toanypenaltywhich itmay impose,givesummary judgment in favour of the fund for the amountwhich the participatingemployerfailedtopaytogetherwithinterestattheprescribedrateontheamountduewitheffectfromthelastdayofthemonthinrespectofwhichthecontributionwaspayable.

(8) Without derogation from section 385 of the Criminal Procedure and Evidence Act [Chapter 9:07],whereaparticipatingemployercontravenesthissection, thefollowingpersonsshallbepersonallyliableforthecontravention—

(a) every director or executive officerwho is regularly involved in themanagementoftheparticipatingemployer’soverallfinancialaffairs;

(b) every person in accordancewithwhose directions or instructionsthegoverningbodyor structureof theparticipating employer acts orwho controls orwho is regularly involved in themanagement of theparticipatingemployer’soverallfinancialaffairs;

unlessitisprovedthatheorshetooknopartinthecommissionoftheoffence.

18 Transferofaccruedbenefitsandrightsbetweenfunds

(1) Where a person ceases to be a member of a fund and becomes a member ofanotherfundwhichpermitshimorhertotransfertothatotherfundanybenefitorrighttowhichheorshehasbecomeentitledfromthefirst-mentionedfund,thefirst-mentionedfundshall,withinthirtydaysafterthememberhasinwritingrequestedittodoso,orwithinsuchlongerperiodastheCommissionmayallow,transferthatbenefitor right, in full, to the other fund.

(2)Whereafundfailstotransferabenefitorrightwithintheperiodspecifiedinsubsection(1),theregisteredtransferorfundshallpaytotheregisteredtransfereefundinterestattheprescribedrateonthevalueofthebenefitorright,calculatedfromthedateonwhichthefundwasrequestedtomakethetransfer.

19 Minimumbenefits Everyfundshallprovidethefollowingminimumbenefits to itsmembersandbeneficiaries—

(a) where a person ceases to be a member of the fund prior to retirement in circumstancesother thandissolutionof the fund, thebenefitspayableto him or her shall not be less than the prescribed minimum individual reserve;


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(b) where the fund is dissolved in the circumstances described in section 12, thebenefitspaidtoeachofitsmembersshallnotbelessthantheminimumindividual reserve:

Providedthat,wherethefairvalueofthefund’sassetsislowerthan the sum of the minimum individual reserves for all members who are beingincludedinthedistributionoftheassetsafteradjustmentforanybenefitspreviouslypaidtothemandthecostofannuitypoliciestoprovideequivalentpensionstoallexistingpensionersanddeferredpensioners,theminimumindividualreservemaybeproportionallyreducedintheratiowhich the fair value of the assets bears to the total of all the minimum individualreservesadjustedforanybenefitspaidpreviouslyplusthecostofsuchannuitypolicies;

(c) wherethefundisconvertedtoadefinedcontributioncategoryfund,theamounttobecreditedtoeachmember’sindividualaccountshallnotbeless than the minimum individual reserve:

(d) a pension increase of an amount not less than the minimum pension increase shall be granted to pensioners and deferred pensioners on the effectivedateofthefirstactuarialvaluationfollowing—

(i) theregistrationofthefund;or (ii) the appointed day, in the case of funds established before the

appointedday;

andatleastonceeverythreeyearsforadefinedbenefitfundandatleast,onceeveryyearforadefinedcontributionfund,thereafter. (2)Afundshallnotmakeanyex-gratiapaymentoutofsuchfund’sassetsunlesssuchpaymentisfullyfundedbytheemployeroranyotherperson.

(3)Notwithstandinganythingtothecontraryintherulesofthefundconcerned,persons who cease to be members of a fund shall receive, as part of their transfer values orbenefitpayments,ashareof—

(a) anyactuarialsurplus;and

(b) thefund’sinvestmentreserveaccount;and

(c) suchcontingencyreserveaccountsastheboarddeemsappropriate;

theirsharebearingthesameratioasthefund’sliabilityinrespectofpastserviceofthemembersleavingthefundbearstothefund’sliabilitytowardsallitsmembersinrespect of past service at the date on which the persons concerned ceased to be members:

(4)Aparticipatingemployerofanexistingfundmay,inadditiontocontributingtothefund,takeoutapolicyoflifeinsuranceinfavourofeachofhisorheremployeeswhoaremembersof the fund,whichpolicyshallprovidebenefitsequivalent toatleasttheemployee’sannualpensionableemolumentsorsuchotheramountasmaybeprescribed.

20 Minimum contributions

(1)Membersandparticipatingemployersofeverydefinedcontributioncategoryfundshallpaycontributionsofsuchminimumamountsasmaybeagreeduponintherules of the fund.

(2)Membersandparticipatingemployerswhofailtopaycontributionsintermsof subsection (1) shall fall in contribution arrears.


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21 Actuarial surpluses

(1) Where there is an actuarial surplus in a fund, it shall vest in the fund and shall be allocated, in the manner prescribed in the rules of the fund, in accordance with this section.

(2)Notwithstandinganythingtothecontraryintherulesofthefund,theboardof the fund shall use an actuarial surplus for one or more of the following purposes— (a) toimprovebenefitsforexistingmembersandadditionally,oralternatively,

pensioners; (b) tosupplementbenefitspreviouslypaidtoformermembersortosupplement

transfervaluespreviouslytransferredinrespectofformermembers; (c) to reducecurrentcontributionsdue fromparticipatingemployersofa

definedbenefitfund; (d) fortransfer,whollyorpartly,toacontingencyreserveaccount:

Provided that before the actuarial surplus is used in terms of this subsection, thefundshallseekapprovalfromtheCommission.

PART V

ManageMent and adMinistration of Funds

22 Postaladdress,electronicmailaddressandregisteredoffice

(1)EveryfundshallhaveinZimbabwe— (a) apostaladdress;and (b) aregisteredphysicalofficeandaddress;and (c) ifittransactsanybusinesselectronically,anelectronicmailaddress;

particularsofwhichshallbenotifiedtotheCommissionuponregistration.

(2) Where a fund wishes to change its addresses referred to in subsection (1), it shallwithinfourteendaysbeforesuchchange,notifytheCommission,inwriting,ofthechange, and the fund shall publish in the GazetteandinadailynewspaperofappropriatecirculationoranyothermediaapprovedbytheCommission,anadvertisementstatingthe change of address and thereafter change the said address.

(3) Where the address of a fund is changed in terms of subsection (2) the Commission shall enter the new address in its register. (4)Afundthatcontravenesthissectionshallbeguiltyofanoffenceandliabletoacategory1civilpenalty.

23 Board of fund

(1)Everyfundshallhaveaboardconsistingofatleastoffivemembersandamaximumofninemembers,ofwhichatleastone-halfshallbeelectedbythemembersofthefundandtheotherboardmembersbeingappointedbyparticipatingemployers:

ProvidedthattheCommission,onapplicationbyafund,may—

(a) if satisfied that afive-memberboardwouldbe impractical or undulyexpensive or is not in the best interest of the fund, authorise the fund to haveaboardoffewerthanfivemembers;or


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(b) ifsatisfiedthatmorethanninememberswouldbeinthebestinterestofthefund,authorisethefundtohaveaboardofmorethanninemembers;or

(c) exemptthefundfromtherequirementthatatleastone-halfofitsboardmembersshallbeelectedbymembersifthefundisaretirementannuityfundandmayatanytimeforgoodcauseshownandonduenoticetothefund,withdrawanysuchauthorisationorexemption.

(2) A fund shall appoint at least one independent expert member who, in the opinion of the fund shall assist the board members in exercising their functions:

Providedthatapersonwhoisanofficeroremployeeofthefundshallnotbeeligible for appointment in terms of this subsection.

(3) No person shall be appointed as a board member of more than three funds.

(4)At its firstmeeting, the board shall elect fromamongst itsmembers achairperson and vice chairperson of the board.

(5) The vice chairperson of the board shall perform the functions of a chairperson whenever the chairperson is unable to do so.

(6)Whenever theofficeofchairpersonorvicechairpersonfallsvacant theboardshallwithinfourteendayselectoneofitsmemberstofillthevacancy.

(7)Onthedeathof,orthevacationofofficebyaboardmember,thefundshallappointapersontofillthevacancywithin2monthsafterthepositionbecomesvacant.

(8) In electing or appointing the members of the board, the fund shall endeavour toensurethatgenderequalityandgeographicalrepresentationisattained.

24 Functions and duties of board

(1)Theboardofeveryfundshallberesponsiblefordirecting,controllingandsupervising the operations of the fund in accordance with this Act and the rules of the fund, and for that purpose the board shall— (a) ensurethatpropercontrolsystemsareputinplacetoensurethatthefund

complieswiththisActandanyotherlaw; (b) ensurethattherightsandbenefitsofmembersandbeneficiariesofthe

fundareprotectedandthatsuchmembersandbeneficiariesareadequatelyinformedoftheirrights,benefitsanddutiesintermsoftherulesofthefund;

(c) ensurethattherules,operationsandadministrationofthefundcomplywiththisActandanyotherlaw;

(d) takeallreasonablestepstoensurethatcontributionstothefundarepaidwhentheyaredue;

(e) takeallreasonablestepstoensurethatthefundismanagedinasoundmanner;

(f) where appropriate, obtain expert advice on matters on which the board lacksexpertise;

(g) formulatepoliciestofurthertheobjectivesandpurposesofthefund; (h) ensure that records of all its proceedings and of the business of the fund

arekept;


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(2)Boardmembersshall,individuallyandcollectively,intheexerciseoftheirpowers and discharge of their duties— (a) takereasonablestepstoprotecttheinterestsofmembersandbeneficiaries

ofthefund,especiallyintheeventof— (i) theamalgamationofortransferofanybusiness;or (ii) thesplitofthefund;or (iii) thedissolutionofthefund;or (iv) thewithdrawalofaparticipatingemployeror the terminationor

reductionofcontributionsbyaparticipatingemployer;or (v) theconversionofthefundfromadefinedbenefitschemetodefined

contributionscheme,orviceversa; and (b) acthonestlyandingoodfaithwithaviewtothebestinterestofthefund;

and (c) exercisethecare,duediligenceandskillthatareasonableandprudent

personwouldexerciseincomparablecircumstances;and (d) avoidconflictofinterest;and (e) actimpartiallytowardsallmembersandbeneficiaries; (f) informtheCommissiononbecomingawareofanymaterialmatterrelating

totheaffairsofthefundwhich,intheopinionoftheboard,mayseriouslyprejudicethefinancialviabilityofthefundanditsmembers

25 Qualificationsanddisqualifications for appointment as member of board

(1) No person shall be appointed, elected or continue to act as a board member unlessheorshepossessessuchqualificationsandadditionally,oralternatively,hassuchexperienceorexpertiseasmayberequiredfortheproperadministrationofthefund.

(2)Notwithstanding the generality of subsection (1), everyboardmembermust—

(a) be afit andproper person,with due regard to his or her experience,conscientiousnessandintegritytobeentrustedwiththeresponsibilitiesoftheoffice;and

(b) be conversant with rules of the fund.

(3)Everyfundshallensurethatitsboardhasanappropriatediversityofskills,experienceor qualifications formanaging the fund, including skills, experienceorqualificationsin—

(a) thelawrelatingtopensionsandtrusts;

(b) the principles relating to— (i) thefinancialmanagementoffunds; (ii) investmentofassetsofsuchfunds; (iii) riskmanagementoffunds.


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(4)Subjecttosubsection(1)and(2),thedegreeofknowledgeandunderstandingrequiredforboardmembersisthatappropriateforthepurposeofenablingsuchboardmembertoproperlyexercisehisorherpowersanddischargehisorherdutiesasaboardmemberofanyfund.

(5)Everyfundshallwithinsevendays,afterappointingorelectingaboardmember, forward to the Commission for approval the name of the appointed or elected boardmembertogetherwiththeboardmember’s—

(a) police clearance issued within a period of six months before the date of hisorherappointmentorelection;

(b) declarationformintheformasmaybeprescribed;and

(c) anyotherrelevantinformationastheCommissionmayreasonablyrequire. (6)Nopersonshallbequalifiedforappointmentorelectionorcontinueactingas a board member if—

(a) heorshehasbeenadjudgedorotherwisedeclaredinsolventorbankruptintermsofalawinforceinanycountry,andhasnotbeenrehabilitatedordischarged;or

(b) he or she has made an assignment to or arrangement or composition withhisorhercreditorsintermsofalawinforceinanycountry,andthe assignment, arrangement or composition has not been rescinded or setaside;or

(c) within a period of five years preceding his or her application forappointment or election, he or she has been convicted inside or outside Zimbabweofanoffenceinvolvingdishonesty;or

(d) within a period of five years preceding his or her application forappointmentorelection,heorshehasbeenfoundguiltyofanactinvolvingdishonestyorfinancial offence such as terroristfinancing andmoneylaunderinginanyproceedingsofadisciplinarynature;or

(e) thereisamaterialconflictofinterestbetweentheboardmemberandhisorherroleassuch;or

(f) he or she has behaved in a manner which, in the opinion of the Commission,isofadisgracefulorundesirablenaturewhichmayincludethe following—

(i) grossmismanagementofapensionfund;or (ii) improperrecordingorgrossmismanagementofinformation;

or

(g) he or she has been certified either inside or outsideZimbabwe to bementallychallengedorintellectuallyhandicappedorofunsoundmind,andthecertificationremainsinforce;or

unlessexemptedbytheCommission,heorshedoesnotresideinZimbabwe.

(7)TheCommissionmay,inthepublicinterest,removefromofficeanyboardmemberwho,intermsofthissection,isdisqualifiedtoholdofficeassuch.

Provided that the Commission shall, before removing such board member from office,notifytheboardmemberoftheproposedremovalofsuchboardmemberfromofficeandcallforrepresentationfromhimorher.


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26 Termsofofficeofboardmembers (1)SubjecttothisPart,aboardmembershallholdofficeforsuchperiodasshallbestipulatedinthefundrules,whichperiodshallnotexceedtenyears:

Providedthateachtermofofficeshallnotexceedfiveyears.

(2)Ontheexpiryoftheperiodforwhichamemberhasbeenappointedorelected,heorsheshallcontinuetoholdofficeuntilheorshehasbeenre-electedorre-appointedorhisorhersuccessorhasbeenelectedorappointed:

Provided that a boardmember shall not continue to holdofficeunder thissubsection for more than three months.

(3)Noboardmembershallbere-appointedtoaboardifheorshehasalreadyserved on that board for one or more periods, whether consecutive or not, amounting intheaggregatetotenyearsorifheorsheisamemberofthreeothersuchboards.

(4) Where a board member resigns from the Board prior to the expiration of histermofoffice,theboardandtheboardmembermustfurnishtheCommissionwiththereasonsfortheboardmember’sresignation.

27 Trainings and assessments (1)UnlessexemptedbytheCommission,everyboardmembershallundergotrainingoncoreskillswithin6monthsofappointmentorelectionasaboardmember.

(2)Anypersonwho,beforethecomingintoeffectofthisAct,wasaboardmembershallunlessexemptedbytheCommission,undergotrainingoncoreskillswithinoneyearfromthedateofpublicationofthisAct.

(3)Anyboardmemberwhowithoutgoodcauseshownfailstocomplywiththissectionshallbedisqualifiedtoactassuchuntilheorsheacquiresthetrainingoncoreskills.

(4)The core skills referred to in this section shall be determined by theCommission from time to time.

(5) The training providers, who provide trainings referred to in subsection (1), andthetrainingcurriculumshallbeapprovedbytheCommission.

28 PrincipalOfficeroffund (1)Everyfundshallhaveaprincipalofficerappointedbyitsboardintermsofitsrules,whoshallbeordinarilyresidentinZimbabwe.

(2) The chairperson of the board of a fund shall not be eligible to be appointed astheprincipalofficerofthefund.

(3)Theprincipal officer of a fund shall not be a boardmember and shallberesponsible,subjecttothecontrolanddirectionoftheboard,forthedaytodaymanagementofthefundandforensuringthatthedutiesimposedonthefundbythisActandanyotherActarecarriedoutefficientlyandeffectively.

(4)Theprincipalofficershallbeeligibletoattendboardmeetings,butshallnotexerciseanyvotingrights.

(5)AfundshallnotifytheCommissioninwritingofthenameandaddressofitsprincipalofficer.


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(6)Nofundshallappointaprincipalofficerorchangetheaddressofitsprincipalofficerunlessithasgivennotlessthan14dayspriorwrittennoticetotheCommissionof the change or appointment.

(7)Everyprincipalofficershallbeafitandproperpersonwithdueregardto his or her experience, conscientiousness and integrity to be entrustedwith theresponsibilityoftheoffice,andsections25and27shallapply,withnecessarychanges, totheappointmentoftheprincipalofficer.

(8)EveryprincipalofficershallinformtheCommissiononbecomingawareofanymaterialmatterrelatingtotheaffairsofthefundwhich,inhisorheropinionmayseriouslyprejudicethefinancialviabilityofthefundanditsmembers.

(9)Everyprincipalofficershall,inthedischargeofhisorherduties—

(a) takereasonablestepstoprotecttheinterestsofmembersandbeneficiariesofthefund,especiallyintheeventof—

(i) theamalgamationofortransferofanybusiness;or (ii) thesplitofthefund;or (iii) thedissolutionofthefund;or (iv) thewithdrawalofaparticipatingemployeror the terminationor

reductionofcontributionsbyaparticipatingemployer;or (v) conversionof thefundfromadefinedbenefitschemetodefined

contributionscheme,orvice-versa;

and (b) acthonestlyandingoodfaithtothebestinterestofthefund;and

(c) exercisethecare,diligenceandskillthatareasonableandprudentpersonwouldexerciseincomparablecircumstances;and

(d) avoidconflictofinterest;and

(e) actimpartiallytowardsallmembersandbeneficiaries.

(9)Subsections(6),(7)and(8)shallapplytokeypersonnelforstand-aloneself-administeredfundsresponsibleforthefollowingfunctions—

(a) internalaudit;

(b) riskmanagement;

(c) compliance;

(d) finance;and

(e) anyotherpersonastheCommissionmayspecify.

(10)Afundthatcontravenesthissectionshallbeguiltyofanoffenceandliabletoacategory2civilpenalty.

29 Auditor, valuator, custodian, fund administrator (1)Everyfundshallappointintermsofitsrules—

(a) anexternalauditor,whoshallnotbeanofficerofthefund;and

(b) avaluatorwhoshallnotbeanofficerofthefund;and

(c) acustodian,inthecaseofaself-administeredfund;and


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(d) afundadministratorexceptinthecaseofastand-aloneself-administeredfund;and

(e) afundmanager;

Provided that— (i) itshallnotbeobligatoryforafundwhichhasbeenexemptedin

termsofsection34(3)toappointanactuary. (ii) inthecaseofaninsuredfund,theactuary,auditorandcustodian

where applicable, shall be the valuator, auditor and custodian of the insurancecompany.

(iii) unlessapprovedbytheCommission,afundshallnotappointthesame person as its auditor or valuator for a continuous period of morethanfiveyearsinanyeight-yearperiod.

(2)Everyfundshallensurethatthepersonsitappointsintermsofsubsection(1)arefitandproperpersonswhodonothavearecordofperforminginanunprofessionalmanner. (3) In appointing the persons in terms of subsection (1), the fund shall consider whether the person— (a) has ever been declared bankrupt or insolvent, or has entered into

arrangementwithhisorhercreditors; (b) has,withinfiveyearspriortotheapplication,beenconvictedofanoffence

involvingdishonestyterroristfinancingandmoneylaundering; (c) waspreviously in themanagementoradministrationofafundwhose

certificateofregistrationhasbeenrevokedunderthisActduetohisorherfaulteitherfullyorpartially;

(d) isdisqualifiedunderanyotherlaw,orhisorherholdingofficeassuchisdeterminedbytheboardasbeinginanywaydetrimentaltothefund.

(e) performed some unsatisfactorywork forwhich any fund lodged acomplaintwithhisorherprofessionalbody;

(f) hasprovidedinadequateorservicesinanunsatisfactorymannerresultinginanyfund’scertificateofregistrationbeingrevokedbytheCommission;

(g) hasadequateprofessional,technicalandoperationalsystemstoperformtheservicestheyintendtoperformforthefund;

(h) meets any additional requirements asmay be prescribed by theCommission from time to time.

(4) Where, in appointing a person in terms of subsection (1), the fund becomes aware that the person had a complaint lodged against him or her in terms of subsection (3)(e)andhadperformedworkinamannerthatcausedafundtohaveitscertificateofregistrationrevokedintermsofsubsection(3)(f),itshallnotappointsuchpersonasits external auditor, valuator, custodian, fund administrator or fund manager.

(5)Everypersonreferredtoinsubsection(1)shallhaveageneralobligationto—

(a) acthonestlyandingoodfaithwithaviewtoprotectthebestinterestsoftheregisteredfund;


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(b) exercisethecare,diligenceandskillthatareasonableandprudentpersonwouldexerciseincomparablecircumstances;

(c) avoidconflictofinterest;

(d) actimpartially;and

(e) reporttotheCommissionassoonasreasonablypracticableanyoccurrencewhich in his or her opinion could be detrimental to the rights of the membersorbeneficiariesofthefund;

(6)TheSecondScheduleshallapplytotheregistration,andfunctionsoffundadministrators and fund managers. (7)Afundthatcontravenessubsection(1)and(4)shallbeguiltyofanoffenceandliabletocategory2civilpenalty.

PART VI

financial requireMents

30 DefinitionsinthisPart In this Part—

“financialstatements”means— (a) astatementoffinancialposition;and (b) astatementofcomprehensiveincome;and (c) astatementofcashflow;and (d) unauditedmonthly,quarterlyorauditedannualfinancialaccounts;

and (e) anyotherstatementsthatmaybeprescribed;

“financialyear”inrelationtoafundestablishedintermsofthisActoranyother enactment, means the period of twelve months ending on the 31st ofDecemberinanyyear.

31 Holding of assets of fund (1)Alltheassetsofafund,includinganypolicyofinsurance,shallbecontrolledandheldinthenameofthefundoranyotherpersonwhoisapprovedbytheCommissionorwhoisamemberofaclassofpersonsapprovedbytheCommission. (2)Subjecttosubsection1,whereafundacquiresanyasset,thefundshallassoon as possible register the asset in its name. (3)Anypersonwhocontravenesthissectionshallbeguiltyofanoffenceandliabletoafinenotexceedingleveltenortoimprisonmentforaperiodnotexceedingthreeyearsortobothsuchfineandsuchimprisonment. 32 Accountsandfinancialstatements (1)Everyfundshallmaintainsuchfinancialrecordsandanyotherrecordsasarenecessaryforthepurposeofholdingandaccountingfortheassetsandliabilitiesof the fund. (2)Afundshall,withinthreemonthsaftertheendofitsfinancialyear,submittotheCommissionauditedfinancialstatements,preparedinaccordancewithofthePublicAccountantsandAuditor’sAct[Chapter 27:12], together with—


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(a) acopyofanyreportbytheauditorrelatingtoanyoftheactivitiesofthefundduringthatfinancialyear;and

(b) acopyofanyannualreportthatthefundissuedtoitsstakeholdersinrespectofthatfinancialyear;and

(c) acopyofanyotherstatementthatthefundpresentedtoitsstakeholdersinrespectofanyofitsactivitiesduringthatfinancialyear;and

(d) suchother statements, reports,documentsand informationasmaybeprescribed.

(3)TheCommissionmay,bynoticeinwriting,exemptafundfromsubmittingauditedfinancialstatementsintermsofsubsection(1)iftheCommissionissatisfiedthatthesizeofthefunddoesnotwarrantit,butthefundshallsubmititsunauditedannualaccountsandtheotherreportsandstatementsrequiredbythatsubsection.

(4)Unlessexemptedby theCommission,every fund,other than insurancecompanyscheme,shallcauseitsfinancialstatementtobepublishedinanewspaperofappropriatecirculationorinanyothermannerapprovedbytheCommission,withinthreemonthsaftertheendofitsfinancialyear.

(5)Anypersonwho fails tocomplywith this sectionshallbeguiltyofanoffenceandliabletoacategory1civilpenalty.

33 Life insurers to maintain separate Pensions Fund and separate accounts

(1) A life insurer which carries on pension and provident fund business shall maintain—

(a) a separate fund, to be called the “Pensions Fund”, representing the liabilities of that insurer in respect of its pension and provident fund business;and

(b) separate accounts relating to the statement of comprehensive income of that insurer in respect of its pension and provident fund business.

(2) A life insurer which carries on pension and provident fund business shall, on the recommendation of a valuator which is based on the liabilities represented in theinsurer’sPensionsFund,designatewhichoftheinsurer’sassetsshallberegardedasassetsofthePensionFund,andtheassetssodesignatedshallbeclearlyshowninthestatementoffinancialpositionofthatinsurerasbeingregardedasassetsofthePensions Fund.

(3)Partoftheassetsofalifeinsurer’sPensionsFundmaybeheldintheformofsharesinacompanywhichistheinsurer’sholdingcompanyorinothersubsidiarycompaniesof thatholdingcompany,asdefined in section2of theCompaniesAct[Chapter 24:03]:

Provided that— (i) theaggregatevalueoftheshares,includingsharesheldinacompany

whichisasubsidiarycompanyoftheinsureritself,shallnotexceedfiveper centumofthevalueofthetotalassetsinthePensionFunds;

(ii) thesharesshallnotconferanyrightonthelifeinsurertovoteatanymeetingofmembersoftheholdingcompanyorsubsidiaries,notwithstandinganythingtothecontraryinsuchcompanies’articlesof association.


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(4)Attheendoftheinsurer’sfinancialyear,theinsurershallsubmittotheCommission a return showing the aggregate value of Pensions Fund, the detailed split offundsaswellaseachfund’sshareofthebalancescomprisingthePensionsFundtogetherwithdetailsoftheunderlyingassetssupportingthePensionsFundandsuchotherinformationastheCommissionmayrequire.

(5)Unless exempted by theCommission, every life insurer shall cause areturn showing the aggregate value of Pensions Fund to be published in a newspaper ofappropriatecirculationorinanyothermannerapprovedbytheCommission,withinthreemonthsaftertheendofitsfinancialyear.

(6) If, on the winding up of the operations of a life insurer which carries on pensionandprovidentfundbusiness,andtheinsurer’sassetsareinsufficienttopayinfulltheclaimsofeveryholderofapolicyissuedbytheinsurer,theassetswhichhavebeendesignatedintermsofsubsection(2)asassetsoftheinsurer’sPensionsFundshallbeappliedonlyforthebenefitofthefundsoperatedoradministeredbytheinsurer.

(7) Assets which have been designated in terms of subsection (2) as assets of thePensionsFundshallnotbeattachedtosatisfyaclaimagainstalifeinsurerwhichclaim is not in respect of pension and provident fund business. 34 Actuarial Valuation (1)Subject to this section, a fund shall cause itsfinancial condition to beinvestigatedandreporteduponbyanactuaryasmaybeprescribedfromtimetotime,anduponfinalisation,thefundshallwithin30daysofreceivingareport fromtheactuarysubmit—

(a) asignedcopyoftheactuarialreport;and

(b) asummaryofthekeyfindingsoftheactuarialreport;

to the Commission.

(2) If theCommission is satisfied that thefinancialmethods adoptedby afundaresuchas to renderperiodical investigationsbyanactuaryunnecessary, theCommissionmay,ifsorequestedbythefund,exemptthefundfromcompliancewithsubsection(1),subjecttosuchconditionsastheCommissionmayspecify.

(4)TheCommissionmayatanytimevaryanyconditionsfixedintermsofsubsection(3)orcancelanyexemptiongrantedintermsofthatsubsection.

(5) A fund shall be exempted from compliance with subsection (1) if—

(a) itsrulesprovideforthepaymentofalumpsumbenefit,basedonareturnofcontributionswithinterestandashareofprofits,whichmaybeappliedtothepurchaseofapensionfromaninsurer;or

(b) itisaninsurancecompanyscheme— (i) the rulesofwhichprovide that thecontributionspayableby the

members and the participating employerswill be shown in theinsurancepolicyissuedinconnectionwiththescheme;and

(ii) whichdoesnotprovideforthepaymentofapensionbasedonthesalaryoremolumentsofthememberimmediatelybeforethepensionbecomespayableortheaverageofhisorhersalaryoremolumentsduringaspecifiedperiod.


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(6)Afundwhichcontravenessubsection(1)shallbeguiltyofanoffenceandliabletoacategory1civilpenalty.

35 Investments (1) Subject to subsection (7), a fund shall at all times hold its assets in Zimbabwe in investments which are realisable in Zimbabwe.

ProvidedthattheCommissionmay,inwriting,authorise—

(a) a fund toholdpartof itsassets inother investmentsapprovedby theCommission,subjecttosuchtermsandconditionsasitmayfromtimetotimefix;

(b) afundtoinvestallorpartofitsassetsinforeignmarkets,subjecttosuchtermsandconditionsastheCommissionmayfix.

(2) Subject to subsection (7)—

(a) aregisteredfundthatisnotaninsurancecompanyschemeshallatalltimes hold and maintain investment in approved securities, of not less than the prescribed amount, of the aggregate fair value of all its assets in Zimbabwe in—

(i) local registeredsecuritieswhichare issuedorguaranteedby theStateorwhichareissuedbyalocalauthorityorstatutorybody;or

(ii) anyotherassetsthatmaybeapprovedbytheMinisterfromtimetotime.

(b) an insurer which carries on pension and provident fund business shall at all times hold at least a certain per centumofitsassetsasmaybeprescribedfrom time to time, which are assets in Zimbabwe and which have been designated in terms of section 33(2) as being assets of its Pension Fund, insecuritiesorloansspecifiedinparagraph(a)(i)or(ii).

(3)Subjecttosubsection(7),nofundshallinvestorexpose,whetherbywayof loans or otherwise—

(a) morethanapercentageprescribedbytheMinisteroftheaggregatefairvalue of total assets in the following—

(i) the business of— A. aparticipatingemployer;and B. holdingcompanyofaparticipatingemployer;and C. asubsidiaryoftheparticipatingemployer’sholdingcompany;

and D. aholdingcompanyofanassociateofaparticipatingemployer;

and E. anassociateofaparticipatingemployer; and (ii) any businesswhich is controlled ormanaged by a participating

employer:

ProvidedthattheCommissionmayexempt,eitherwhollyorinpart,anyfundestablishedbyalocalauthorityorastatutorybodyfromthisparagraph;


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(b) its assets in anybusiness referred to in paragraph (a) unless the riskreturn trade off on the investment is reasonable and the investment is not prejudicial to the fund.

(4)Afundshallnot,withoutthepriorapprovaloftheCommission,directlyorindirectlyacquireorholdsharesoranyotherfinancialinterestsinanotherentitywhichresultsinthefundexercisingcontroloverthatentity. (5)Afundmay,ifitsrulessoprovide,granttoamemberaloanoraguarantee,forthepurposesofpurchasinganimmovablepropertyonwhichadwellinghousehasbeenoristobeerected,securedbyafirstmortgagebondonsuchimmovableproperty:

Provided that the loan or guarantee shall not exceed—

(a) theamountofthemember’sindividualminimumreserveonthedateonwhichtheloanorguaranteewasgranted,anddoesnotexceedseventy-fiveper centumofthefairvalueoftheproperty;or

(b) thefairvalueofthepropertyifthemember’semployerguaranteesthefundthatheorshewillmeetanyshortfallbetweentheamountreferredtoinparagraph(a)andthefairvalueoftheproperty.

(6)Nofundshallengageinorcarryonanyformofbusinessotherthanforwhich it was registered under this Act.

(7) A fund which—

(a) contravenes subsection (2) or (3) in regard to the holding or investment ofitsassets;or

(b) grants a loan to a member in excess of the maximum amount permitted undersubsection(5);or

(c) engagesinorcarriesonbusinessincontraventionofsubsection(6);

shallbeguiltyofanoffenceandliabletoacategory2civilpenalty.

36 Troubled Funds (1)If,afterexamininganyreturnorreportintermsofthisActinrespectofafund,theCommissionisoftheopinionthatthefundisnotinasoundfinancialconditionandasatisfactoryrecoveryplanforbringingthefundintoafinanciallysoundconditionwithinsuchtimeasmaybeprescribedhasnotbeensubmittedtoit—

(a) theCommissionshalldirectthefundtosubmitarecoveryplansettingoutarrangementsforthepurposeofbringingthefundintoafinanciallysoundconditionwithinsuchreasonableperiodastheCommissionmayspecify;and

(b) thefundshallsubmitsuchrecoveryplantotheCommissionbythedatespecifiedbytheCommissionintermsofparagraph(a),togetherwithareportontherecoveryplanbythevaluatoror,ifthefundhasnotappointedavaluator, a reporton the recoveryplanby the fund’sauditorunlessexemptedbytheCommissiontodoso.

(2)Afterconsideringarecoveryplansubmittedtoitintermsofsubsection(1),theCommissionmay—

(a) approve the recovery plan, either unconditionally or subject to suchconditionsasitdeemsfit;or


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(b) rejecttherecoveryplan,inwhichcasethefundshallsubmitanewrecoveryplan in accordance with fresh directions from the Commission, together withareportontherecoveryplanbythevaluatororauditorwhoreportedontherejectedrecoveryplan.

(3)IftheCommissionisoftheopinionthatthefinancialconditionofafundissuchthatitisnotpossibleorpracticabletobringthefundintoafinanciallysoundconditionwithinareasonabletime,theCommissionmaydirectthatalloranypartofthebusinessofthefundshallbewoundupandthatsection12shallapply,subjecttosuchmodificationsastheCommissionconsidersreasonable.

(4)A fundwhichhas beendirected to submit a recoveryplan in termsofsubsection(1)andwhich,withoutjustcause,failstodepositsucharecoveryplanwithintheperiodspecifiedinparagraph(b)ofthatsubsection,shallbeguiltyofanoffenceandliabletoacategory2civilpenalty.

(5)A fundwhich fails,without justcause, tocarryout theprovisionsofarecoveryplanthathasbeenapprovedbytheCommissionintermsofsubsection(2)shallbeguiltyofanoffenceandliabletoacategory1civilpenalty.

PART VII

suPervision and investigation of funds

37 Appointment of inspectors (1) For the purpose of assisting the Commission to monitor and supervise funds, tocarryoutinvestigationsandtoensurecompliancewiththisAct,theCommissionmayappointasinspectors—

(a) anyofitsemployees;or

(b) subject to the Public Service Act [Chapter 16:04],anymembersofthePublicService;or

(c) anyotherpersonwho,intheCommission’sopinion,hasthenecessaryexperience, qualifications or skill to exercise all the functions of aninspectororanysuchparticularfunction,asthecasemaybe.

(2)TheCommissionmayappointabodycorporateasaninspectorintermsofsubsection(1)andwhereitdoessoallofficersandemployeesofthebodycorporatewhoaredesignatedbythebodycorporate’sheadshallbeinspectors.

(3)TheCommissionshallprovideeveryinspectorwithadocumentidentifyinghimorherasaninspector,andheorsheshallproduceitonrequest. 38 Powers of inspectors (1)IntheexerciseofhisorherfunctionsunderthisAct,aninspectormay,subject to subsection (2)—

(a) atanytimeduringnormalofficehoursenterthebusinesspremisesofafundoranyotherpremisesinwhichitisbelievedonreasonablegroundsthattherearedocumentspertainingtothebusinessofafund;

(b) requireanyofficer,employeeoragentofafundtoproduceanyofthefund’sdocuments;

(c) havingenteredafund’spremisesintermsofparagraph(a)—


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(i) searchthepremisesforanymoneysorrecordspertainingtothefund’spensionandprovidentfundbusiness;

(ii) openorcausetobeopenedanystrong-room,safeorothercontainerinwhichitissuspected,onreasonablegrounds,thatthereareanyofthefund’smoneyorrecords;

(iii) examineandmakeextractsfromandcopiesofthefund’srecords; (iv) remove any records from the premises, for so long asmay be

necessaryforthepurposeofexaminingthemormakingextractsfrom or copies of them:

Providedthattheinspectorshallgiveafullreceiptforanyrecordsoremoved;

(d) requireanyofficer,employeeoragentofafund— (i) toexplainanentryinthefund’srecordsoraccounts; (ii) toprovidetheinspectorwithsuchinformationconcerningthefund’s

managementoractivities; astheinspectormayreasonablyrequire.

(2)Thepowersofentryandsearchconferredbysubsection(1)shallnotbeexercised except with the consent of the fund or of the person in charge of the premises concerned or, in the absence of such consent the inspector has a search warrant from a competent court.

39 Action that may be taken by Commission upon discovering illegal conduct by fund

(1) If, following a report by an inspector and,where appropriate, afterconsideringanyrepresentationsmadebythefundconcernedintermsofsubsection(2),theCommissionissatisfiedthatafundhascontravenedanytermorconditionofitsregistrationoranyprovisionofthisActoranydirective,requirementorordermadeunderthisAct,theCommissionmay,subjecttothissection,doanyoneormoreofthefollowing—

(a) issueawarningtothefund;

(b) requirethefundtoappointapersonwho,intheCommission’sopinion,isqualifiedtoadvisethefundontheproperconductofitsbusiness;

(c) issueawritteninstructiontothefundtoundertakeremedialactionspecifiedintheinstruction;

(d) instructthefundtosuspendorremoveanymemberofitsboardorofficeroremployeewhoisresponsibleforsuchcontravention;

(e) directthefundtosuspendalloranyofitspensionandprovidentfundbusiness;

(f) placethefundunderthemanagementofaninterimadministrator;

(g) conveneameetingofthestakeholdersofthefundtodiscusstheremedialmeasurestobetaken;

(h) remove or cause the replacement of external service providers or report themtoapplicableauthorities;

(i) restrictthedisposalofthefund’sassets;and

(j) anyotherdirectivetheCommissionmaydeemfit.


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(2)Beforetakinganyactionintermsofsubsection(1),theCommissionshallinform the fund concerned, in writing, of—

(a) thecontraventionofwhichitisbelievedtobeguiltyofandthereasonsforthatbelief;and

(b) the action theCommissionproposes to take in respect of the allegedcontravention;

andshallaffordthefundanadequateopportunitytomakerepresentationsinthematter:

Provided that, where the Commission considers that immediate action is necessarytopreventirreparableharmtothefundoritsstakeholdersorcreditors,theCommissionmaytakesuchactionbeforeaffordingthefundanopportunitytomakerepresentations in terms of this subsection.

40 Investigation into affairs of fund (1) If—

(a) afundhasfailedtoprovidetheCommissionwithanyrecordorinformationrequiredbyorunderanyprovisionofthisActwithintheperiodspecifiedbytheprovision,andhasnotprovidedthatrecordorinformationwithinfourteendays,commencingonthedateuponwhichtheCommissionoraninspectorremindedthefundinwritingofitsfailure;or

(b) afundhasknowinglyprovidedincorrectorincompleteinformationtotheCommission, and has not furnished correct or complete information within fourteendays,commencingonthedateuponwhichtheCommissionoran inspector called upon the fund in writing to correct or complete the information;or

(c) anydocument or informationprovided to theCommissionby a fundshowsthatthefundhasfailedtocomplywithanyprovisionofthisAct;or

(d) theCommissionhasinformedthefundofanirregularitythatrequirescorrectionandthefundhasnotcorrectedthatirregularitywithinfourteendays,commencingonthedateuponwhichtheCommissioncalleduponthefundinwritingtocorrecttheirregularity;or

(e) theCommissionhasreasonablecausetobelievethattherightsofanyclassofmembersorbeneficiariesarebeingprejudicedbyafund;or

(f) afundoranyofitsofficers,employeesoragentshaspreventedaninspectorfromexercisinganyofhisorherpowersintermsofsection38;

andtheCommissionconsidersthataninvestigationisnecessaryforthepurposeofprotecting the interests of fund members, preventing or detecting a contravention ofthisActoranyotherlaw,theCommissionmaydirectaninspectortoconductaninvestigationintothefundconcernedoranyaspectofitsmanagementoractivities.

(2) For the purposes of an investigation in terms of subsection (1), an inspector may—

(a) seizeanysecurities,recordsoraccountsofthefundconcernedwhichintheinspector’sopinionmayaffordevidenceofanoffenceorirregularity:

Provided that— (i) the inspector shall issue a receipt for any securities, records, or

accountssoseized;and


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(ii) anysecurities,records,oraccountssoseizedshallberetainedonlyforsolongasmaybenecessaryforthepurposesoftheinvestigation;

(b) examine,whetherunderoathorotherwise,anypersonwho isorwasamemberoftheboardofthefundconcerned,oranofficer,employee,agent,auditor,legalpractitioner,valuatororstakeholderofthefund:

Provided that— (i) anypersonsoexaminedshallbeentitledtohavehisorherlegal

practitionerpresentattheexamination; (ii) nopersonshallberequiredtoansweranyquestionwhichheorshe

wouldnotberequiredtoanswerifheorshewereawitnessinacivilorcriminalcasebeforeacourt;

(c) requireanypersonreferredtoinparagraph(b)toproduceanysecurity,record, or account of the fund concerned to which he or she has access, or togiveanyinformationathisorherdisposalrelatingtothemanagementor affairs of the fund:

Providedthatnosuchpersonshallberequiredtoproduceanythingor to answer anyquestionwhichhe or shewould not be required toproduceoranswer,asthecasemaybe,ifheorshewereawitnessinacivil or criminal case before a court.

(3)A fundwhose securities, records, or accounts havebeen seizedunderthissectionshallbeentitled,throughitsauthorisedrepresentative,toexamine,makeentriesinandmakeextractsfromthemduringofficehoursundersuchsupervisionasaninspectormaydetermine.

(4) In conducting an investigation in terms of subsection (1), an inspector shall have the same powers, rights and privileges as are conferred upon a commissioner bytheCommissionsofInquiryAct[Chapter 10:07], other than the power to order a persontobedetainedincustody,andsections9to13and15to19ofthatActshallapply,withanynecessarychanges,inrelationtoaninvestigationmadeintermsofthissectionandtoanypersonsummonedtogiveorgivingevidenceatthatinvestigation.

(5) If, in the opinion of the Commission, it would be in the interests of the fund’sstakeholderstodoso,theCommissionmay,fortheperiodofaninvestigationunder this section, prohibit a fund being investigated from—

(a) engagingsuchfundactivitiesastheCommissionmayspecify;

(b) disposing of any property connectedwith the business of the fundconcerned,forwhichpurposetheCommissionorinspectormay,tosuchextentastheCommissionshallspecify,preventthefundfromoperatinganyaccountwithanybank,buildingsocietyorfinancialinstitution.

(6)IftheCommissionconsiderssuchacoursenecessarytoprotecttheinterestsofstakeholdersorcreditorsofthefundconcerned,theCommissionmay,beforeorduringaninvestigationundersubsection(1),requirethefundtolodgealloranyofitssecuritieswiththeCommissionforsafe-keeping.

(7)TheCommissionshallreturntothefundanysecuritieslodgedwithitinterms of subsection (6) as soon as the Commission considers it to be in the interests of thefund’sstakeholdersorcreditorsforthesecuritiestobereturned:

Provided that, if the fund is dissolved in terms of section 12, the Commission shalldeliverthesecuritiestotheliquidatorofthefund.


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41 Procedure on completion of investigation (1) On completion of an investigation in terms of section 40, an inspector shall forward his or her report thereon to the Commission.

(2) On receipt of a report in terms of subsection (1), the Commission shall—

(a) send a copy of the report to the fund thatwas the subject of theinvestigation;and

(b) invitethefundtomakerepresentationsonthereport.

(3)Afundtowhichacopyofthereporthasbeensentintermsofsubsection(2)shall,withinthirtydays,submittotheCommissionrepresentationsonthereport.

42 Action by Commission following investigation (1)If,afterconsideringaninspector’sinvestigativereportsenttoitintermsofsection41(1),togetherwithanyrepresentationsmadebythefundconcernedintermsofthatsection,theCommissionissatisfiedthatthefundhascontravenedanytermorconditionofitsregistrationoranyprovisionofthisActoranydirective,requirementorordermadeunderthisAct,theCommissionmay,subjecttosubsection(2),takeanyaction referred to in section 39(1).

ProvidedthatwherethefunddoesnotmakeanyrepresentationstheCommissionwillproceedtotakeactionreferredtoinsection39(1).

(2)Before takinganyactionreferred to insubsection(1), theCommissionshall—

(a) informthefundconcerned,inwriting,oftheactionitproposestotake;and

(b) givethefundconcernedfourteendaystomakerepresentationsinthematter:

Provided that, where the Commission considers that immediate action is necessarytopreventirreparableharminthefundoritsstakeholdersorcreditors,theCommissionmaytakesuchactionbeforeaffordingthefundanopportunitytomakerepresentations in terms of this subsection.

PART VIII

additional Powers of coMMission

43 Power to demand documents and information (1)TheCommissionmayatanytimecallupon—

(a) afundorafundseekingregistration;or

(b) anofficerofafundorofafundseekingregistration;or (c) aparticipatingemployer; toprovidetheCommissionwithanyrecordorinformationinrelationtoanymatterconnectedwiththebusinessortransactionsofthatfund;

(2)Anypersonrequiredtosubmitinformationintermsofsubsection(1)shallsubmitsuchinformationwithinaperiodstatedintherequestbytheCommissionorwithinsuchfurtherperiodastheCommissionmayallow.


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44 Commissionmayrequireunregisteredfundtoprovideinformation (1)TheCommissionmay,bynoticeinwriting,requireanypersonwhomithasreasontosuspectiscarryingonthebusinessofafundwhichisnotregisteredtotransmittoit,withinsuchperiodasmaybespecifiedinthenotice,acopyoftherules,ifany,intermsofwhichthebusinessconcernedisbeingoperated,togetherwithacopyofthelastannualaccountsoranyotheraccountsrecordedbythatpersoninrelationtothatbusiness,andsuchotherinformationrelatingtothebusinesscarriedonbythatpersonastheCommissionmayrequire,

(2)Ifapersonwhohasbeenrequiredintermsofsubsection(1)totransmitanyrecord,orinformationfailstocomplywiththenoticewithintheperiodspecifiedinthenotice,theCommissionmayinvestigateorappointaninspectortoinvestigatetheaffairsoranypartoftheaffairsofthatperson,andsection40shallapply,withanynecessarychanges,inrelationtotheinvestigation

(3)Subjecttosection8,ifitappearsfrominquiriesintermsofsubsection(1)oraninvestigationintermsofsubsection(2)thatthepersonconcernediscarryingonthe business of a fund which is not registered, the Commission—

(a) shallinformthepersonaccordinglybynoticeinwritingandcausethefundtoregister;

(b) may,wind up the fund concerned, or take anymeasures that theCommissiondeemsfitinamannerthatminimisesprejudicetomembersof the fund.

45 Commission may extend time-limits WherebyinthisActanytimeisspecifiedwithinwhichanythingistobedone,theCommissionmayextendthetime,ifitissatisfiedthatthefailuretocomplywiththe provision relating to such time has not been or will not be due to culpable neglect or default on the part of the person concerned.

PART IX

general

46 Right to obtain copies of or to inspect records and to obtain information

(1)Afundshallprovidetoanystakeholderwhorequestsit,atitsexpenseasmaybespecifiedintherulesofthefund,acopyof—

(a) therulesofthefund;

(b) thelatestfinancialstatementsofthefund.

(2)Astakeholderofafundshallbeentitledatallreasonabletimestoinspect,freeofcharge,attheregisteredofficeofthefundandtomakeextractsfrom—

(a) therulesofthefund;

(b) thelatestfinancialstatementsofthefund;

(c) thelastreport,ifany,byavaluatorintermsofsection34;

(3)Afundwhich,knowinglyandwithoutjustcause—

(a) failstodeliveranyrecordtoastakeholderwhenrequiredtodosointermsofsubsection(1);or


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(b) prevents a stakeholder from exercising his or her rights in terms ofsubsection (2), or hinders or obstructs him or her in the exercise of those rights;

shallbeguiltyofanoffenceandliabletoacategory1civilpenalty.

(4)Anypersonshallbeentitled,onpaymentoftheprescribedfee,toinspectanyofthefollowingrecordsattheofficeoftheCommissionandtomakecopiesofandtakeextractsfromanysuchrecord—

(a) therulesofanyfund;

(b) thelatestfinancialstatementsofafund;

(c) thelastreport,ifany,preparedbyavaluatorintermsofsection34inrespectofanyfund:

Provided that theCommissionmaywaive the fee if it is satisfied that theinspection,copyorextractinquestionisrequiredforthepurposeoffurtheringapublicinterest.

(5)TheCommissionshallwithoutchargeprovideanyperson,onrequest,withtheaddressoftheregisteredofficeofanyfundandthenameandcontactdetailsofitsprincipalofficer.

47 Amalgamations, splits and transfers (1) Subject to this section and with the approval of the Commission—

(a) twoormorefundsmayamalgamateandbecomeonefund;

(b) afundmaytransferallorpartofitsassetsandliabilitiestoanotherfund;

(c) afundmaysplitintotwoormorefunds. (2) Before an application is made to the Commission in terms of subsection (3), the boards of the funds shall cause a notice to be published in the Gazette and a newspaperofappropriatecirculationoranyothermediaapprovedbytheCommission—

(a) oftheirintentiontomaketheapplicationforamalgamation,transferorsplit;and

(b) callinguponanymemberorinterestedpersonwhohasanyobjectiontothe proposed amalgamation, transfer or split to lodge his or her objection inwritingwiththeCommissionwithinsuchperiodasmaybespecifiedin the notice.

(3) A fund that desires to effect an amalgamation, transfer or split referred to in subsection(1)shallapplyinwritingfortheCommission’sapproval,submittingwithits application—

(a) acopyofaresolutionbytheboardofeachfundconcerned;and

(b) acopyoftheschemesettingoutdetailsoftheproposedamalgamation,transferorsplit;and

(c) acopyofeveryactuarialreportorotherstatementtakenintoaccountforthepurposesofthescheme;and

(d) anyfurtherinformationthattheCommissionmayrequire,includinganyspecialreportbyavaluatororauditor.


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(4) If, on receipt of an application in terms of subsection (3), the Commission issatisfied—

(a) that the proposed amalgamation, transfer or split would be in the interests ofthemembersandbeneficiariesofthefundsconcerned;and

(b) that the proposed amalgamation, transfer or split would not render any fund that is a party to it andwhichwill continue to exist if theproposed amalgamation, transfer or split is completed unable to meet the requirementsofthisActortoremaininasoundfinancialconditionor,inthecaseofafundthatisnotinasoundfinancialcondition,toattainsuchaconditionwithinareasonableperiod;and

(c) thatanyrulesofafundthat isapartytotheproposedamalgamation,transfer or split which are applicable to the proposed amalgamation, transferorsplithavebeencompliedwithorthatadequatearrangementshavebeenmadetoensurethattheywillbecompliedwithattheappropriatetime;

theCommissionshall,assoonaspossibleandafterconsideringanyrepresentationsbymembersoranyperson,approvetheamalgamation,transferorsplitandforwardacertificateoftransfer,amalgamationorsplittothefundsconcernedtotheeffectthattherequirementsofthissectionhavebeensatisfiedandthatthefundsconcernedmayamalgamate,transferorsplittheassetsandliabilitiesconcerned,asthecasemaybe.

ProvidedthattheCommissionmay,inwriting,authoriseafundtoamalgamatewith, transfer part or split all of its assets to a fund that is not registered in terms of this Act,subjecttosuchtermsandconditionsasitmayfromtimetotimefix;

(5) Upon the completion of an amalgamation in terms of this section of two or more funds—

(a) theamalgamatedfundsshallbedeemedtobedissolved;and

(b) the Commission shall cancel the registration of the amalgamated funds andregisterthenewfundintermsofthisAct;and

(c) the assets of the amalgamated funds shall vest in the new fund and the new fund shall assume the liabilities of the amalgamated funds.

(6) Upon the completion of the transfer of all the assets and liabilities of one fund to another fund in terms of this section—

(a) the transferor fund shall be deemed to be dissolved and the Commission shallcancelitsregistration;and

(b) ifanychangeinthenameofthetransfereefundhasbeenagreedupon,theCommission shall enter that new name in its records in place of the former nameandshallissueacertificateofregistrationtothefundconcernedunderitsnewname;and

(c) the assets of the transferor fund shall be transferred to the transferee fund and the transferee fund shall assume the liabilities of the transferor fund.

(7) Upon the completion of a split of a fund in terms of this section, into two or more funds—

(a) thesplitfundshallbedeemedtobedissolved;and

(b) the Commission shall cancel the registration of the split fund and register thenewfundsintermsofthisAct;and


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(c) the assets of the split fund shall vest in the new funds and the new funds shall assume the liabilities of the split fund.

(8)Notwithstandinganyotherenactment,theCommissionermay,byorderinthe Gazette—

(a) directtheMasteroftheHighCourt,theChiefRegistrarofCompanies,theChiefRegistrarofDeedsoranyotherofficialoftheStateorofanyother authority specified in the order tomake such endorsements onor alterations in his or her register or other records or to issue such certificates,deedsorotherdocumentsasmaybespecifiedintheorderforthe purpose of recording and giving effect to an amalgamation, transfer orsplitapprovedbytheCommissionintermsofsubsection(4);and

(b) authoriseordirectthewaiverofthepayment,inwholeorinpart,ofanycapitalgains tax, transferfee,stampduty,registrationfee, licencefeeor other charge arising out of or in connection with an amalgamation, transferorsplitapprovedbytheCommissionintermsofsubsection(4);

andtheMasteroftheHighCourt,theChiefRegistrarofCompanies,theChiefRegistrarofDeeds,theCommissioner-GeneraloftheZimbabweRevenueAuthorityorotherofficial,asthecasemaybe,shallcomplywithanysuchauthorisationordirection.

(9) The amalgamation of two or more funds, the transfer of assets and liabilities from one fund to another or the split of a fund in terms of this section shall not affect the rightsofanycreditorofapartytothetransactionotherwisethaninhisorhercapacityasamemberofsuchparty.

(10) When an amalgamation, transfer or split referred to in subsection (1) involves the transfer of assets or functions from one service provider to another, the transfershallbeeffectedwithinsuchperiodasmaybeprescribedorastheCommissionmayapprove.

(11)Thissectionshallnotapplytoatransferofassetsandliabilitiesbetweentwofundswhichismadebyvirtueofachangeinemploymentofanymemberofafund.

48 Termination of service (1) In this section—

“service provider” means— (a) actuaries; (b) assetmanagers; (c) creditratingagencies; (d) auditors; (e) Fund managers and fund administrators.

(2)Afundreserves theright to terminate theservicesofanyof itsserviceprovidersonprovidingsuchnoticeintermsofanycontractualandotheragreementsbetween the fund and its service provider.

(3) Upon the receipt of such notice to discontinue such service, a service providershallcausethefullmembership,financialandstatisticalrecordstobecompiledandpassedontotheprincipalofficerorsuchnewappointeeserviceproviderasadvisedbythefund,subjecttothefollowing—


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(a) the maximum time frame to transfer the administration, accounting or secretarial service from one service provider to another as well as the full detailedrecordsofthefundshallbesixtydays;

(b) thetransferofassetsshallbemadewithinninetydays:

Providedthatwherethefundmaybeprejudicedbecauseofassetsheldinaportfoliowhichcannotbeimmediatelytransferred,theinsurerorfund,mayapplytotheCommissiontoextendthenoticeperiodbutonlyfor the portion of assets held in such portfolio, which extension shall not be for more than six months.

(c) inthecaseofaninsurancecompanyfund,wherethefundisinvestedintheinsurer’sdepositadministrationscheme—

(i) a maximum of three months to transfer that portion of the assets thathavevested;

(ii) a maximum of twelve months to transfer that portion of the assets thathavenotvested;

(iii) aninsurermaynotdiscriminatebyusingalowervestedornon-vestedbonusrateforpaid-upordiscontinuingcontracts;and

(iv) where an insurer has used an interim rate to calculate the assets to thetransferdate,he/sheshallmakeanappropriateadjustmentuponthefinaldeclarationofthevestedandnon-vestedbonusratefortheyearinquestion.

49 Currency conversion (1) In this section—

“currencyconversiondate”means—

(a) thefirstcurrencyconversiondate,being the1stFebruary,2009,whenZimbabweandollarsweresuspendedaslegaltenderbyUnitedStatesdollar;or

(b) anysubsequentdatenotifiedbytheMinisterintheGazette as the dateonwhichanycurrencywhichhasbeenlegaltenderinZimbabweissupersededbyanyothercurrency;

“existingfund”meansafundthatwasinexistenceonthecurrencyconversiondate;

“formercurrency”,inrelationto—

(a) thefirst currency conversion date specified in paragraph (a) ofthedefinitionof“currencyconversiondate”,meansZimbabweandollars;

(b) anysubsequentconversiondatenotifiedintermsofparagraph(b)ofthedefinitionof“currencyconversiondate”,meansthecurrencywhichissupersededbyanewcurrencyaslegaltenderinZimbabwe;

“newcurrency”,inrelationto—

(a) thefirstcurrencyconversiondatenotifiedintermsofparagraph(b)ofthedefinitionof“currencyconversiondate”,meansUnitedStatesdollars;


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(b) any subsequent currency conversion date notified in terms ofparagraph(b)ofthedefinitionof“currencyconversiondate”,meansthecurrencywhichsupersedestheformercurrencyaslegaltenderin Zimbabwe.

(2)Theboardofeveryexistingfundthatisadefinedbenefitcategoryfundshall,assoonaspossibleafteracurrencyconversiondate—

(a) causethefund’sactuarytocalculate—

(i) thefund’sliabilitiesintheformercurrencytowardsitsmembers,beneficiariesandotherstakeholdersatthecurrencyconversiondate,takingaccountof—

A. theinvestmentreturnuptothatdate;and B. themember’scontributionsplusinterestuptothatdate; C. pensionableserviceofeachmember; D. inflation; E. otherfactorsasmaybenecessary:

andassessingseparatelythefund’sliabilitiestowardsitsmembers,anditsparticipatingemployers;and

(ii) the fair value of the fund’s assets in the former currency at thecurrencyconversiondate;

and

(b) causethefund’sactuarytoapportionthefairvalueofthefund’sassetsin the new currency between themembers, beneficiaries and otherstakeholdersoastoestablish,sofarpossible,thefund’sliabilityinthenewcurrencytoeachofthoseclassesofpersons.

(3)Theboardofeveryexistingfundthatisadefinedcontributioncategoryfundshall,assoonaspossibleafteracurrencyconversiondate,causeavaluatororothersuitablepersonapprovedbytheCommissiontoestablish—

(a) the value in the former and the new currency of the accumulatedcontributions frommembers and employers,with interest, up to thatcurrencyconversiondate;and

(b) thefairvalueofthefund’sassetsintheformerandthenewcurrencyatthatcurrencyconversiondate;

and toapportion thefairvalueof theassets innewcurrencyonanequitablebasisbetweenthemembers,beneficiariesandotherstakeholders,takingaccountoftheeffectsofinflationandotherfactorsasmaybenecessary.

(4)Whereassetswhichwereheldbyanexistingfundonacurrencyconversiondateincreaseinvalueafterthatdate,theincreaseshallbeforthebenefitofthememberswhoweremembers,asthecasemaybe,onthatdate.

50 RequirementsfordocumentsfurnishedtoCommission (1)AfundshallbedeemednottohavecompliedwithanyprovisionofthisActwhichrequiressuchfundtofurnishtotheCommissionadocumentpreparedbythefund,unlessthedocumentissignedbytheprincipalofficerandoneotherpersonauthorisedbytheboardtosignthedocument.


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(2)WhereafundisrequiredintermsofthisActtofurnishtotheCommission—

(a) an original document, it shall also furnish such additional copies, not exceedingthree,astheCommissionmayrequire;

(b) acopyofadocument,itshallfurnishonecopy,certifiedbythefund’sprincipalofficer,andsuchadditionalcopies,notexceedingthree,astheCommissionmayrequire.

(c) anelectroniccopy,copyshallbesenttotheofficialelectronicaddressesprovidedbytheCommission.

51 EffectofcertificateofCommissionondocuments Anydocumentcertified,byoronbehalfoftheCommissioner,tobeadocumentlodgedwiththeCommissionintermsofthisActortobeacopyofsuchadocumentshall be prima faciepresumedtobesuchadocumentorcopy,andanysuchcertifiedcopyshallbeadmissibleasevidenceinanycourtasifitweretheoriginaldocument.

52 Service of process on fund Processinanylegalproceedingsagainstafundmaybeservedonthatfundatitsregisteredoffice.

53 Appeals (1)Subjecttothissection,anypersonwhoisaggrievedby—

(a) adecisionoftheCommissionnottoregisterafund;or

(b) anytermorconditionattachedtotheregistrationofafund,orarefusalbytheCommissiontospecifyatermorconditioninaregistrationcertificate;or

(c) anyamendmentoftheregistrationofafund;or

(d) arefusalbytheCommissiontogiveanyconsentorapprovalintermsofthisAct;or

(e) anyotherdecision,oractionintermsofthisAct;

mayappealtotheMinisteragainstthedecision,oractionconcerned.

(2) An appeal in terms of subsection (1) shall be made in the form and manner prescribedandshallbelodgedwiththeMinisterwithinthirtydaysaftertheappellantwasnotifiedofthedecisionoractionappealedagainst.

(3)Inanappealintermsofsubsection(1),theMinistermayconductorcausetobeconductedsuchinquiryintothematterasheorshedeemsappropriateandmayconfirm,varyorsetasidethedecision,oractionappealedagainst.

(4)TheMinistershallensurethattheappellantandtheCommissionarenotifiedofanydecisionreachedbyhimorherintermsofsubsection(3).

(5)AnypersonwhoisaggrievedbyadecisionoftheMinisteronanappealintermsofsubsection(1)mayappealagainstthedecisiontotheAdministrativeCourtwithin the time and in the manner prescribed in rules of court.


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54 Reports by Commission (1)TheCommissionshall,withinsixmonthsaftertheendofeachfinancialyear,submittotheMinisterareportinregardtopensionandprovidentfundbusinessinZimbabweduringthepreviouscalendaryear.

(2)TheMinistershalllayacopyofareportsubmittedtohimorherintermsofsubsection(1)beforeParliamentononeofthefourteendaysonwhichtheAssemblysits next after he or she has received it.

(3)TheCommissionshallsubmittotheMinisteraquarterlyreportinregardto pension and provident fund business.

55 Improper use of certain titles (1)WithoutthewrittenapprovaloftheCommission,nopersonshallapplytoanybusinesscarriedonbyhimorherinZimbabweanamewhichincludesthewords“pensionfund”,“providentfund”or“retirementannuityfund”oranamewhichindicatesthat he or she carries on the business of a fund unless the fund concerned is registered.

(2)Anypersonwhocontravenessubsection(1)shallbeguiltyofanoffenceandliabletoafinenotexceedinglevel6ortoimprisonmentforaperiodnotexceedingsixmonthsortobothsuchfineandsuchimprisonment.

56 Offences (1)Anypersonwho—

(a) inanystatement,return,report,certificate,balancesheetorotherdocumentrequiredbyorforthepurposesofthisAct,intentionallymakesastatementwhichisfalseinanymaterialparticular,knowingthestatementtobefalseornothavingreasonablegroundsforbelievingittobetrue;or

(b) with intent to deceive—

(i) destroys,mutilates, alters or falsifies any document or securitybelongingtoafund;or

(ii) makesorisapartytothemakingofafalseorfraudulententryinanyregister,accountorotherdocumentbelongingtoafund;

(c) failsorrefusestocomplywithadirectiveissuedintermsofsection6;

shallbeguiltyofanoffenceandliabletoafinenotexceedinglevel10ortoimprisonmentforaperiodnotexceedingoneyearortobothsuchfineandsuchimprisonment.

(2)Anypersonwho,whencalledupontodosointermsofthisAct,withoutlawful excuse fails or refuses to—

(a) furnishinformation;or

(b) produceanydocument;or

(c) lodgeanysecurity;or

(d) renderanyotherassistancetotheCommission;

shallbeguiltyofanoffenceandliabletoafinenotexceedinglevel8ortoimprisonmentforaperiodnotexceedingsixmonthsortobothsuchfineandsuchimprisonment

(3)Anypersonwho,withoutlawfulexcuse,hindersorobstructsaninspectorintheexerciseofhisorherfunctionsunderthisActshallbeguiltyofanoffenceand


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liabletoafinenotexceedinglevel10ortoimprisonmentforaperiodnotexceedingsixmonthsortobothsuchfineandsuchimprisonment.

(4)Anypersonwho,without lawfulexcuse, fails tocomplywithany termorconditionfixedordirectiongivenbytheCommissionintermsofthisActshallbeguiltyofanoffenceandliabletoafinenotexceedinglevel6ortoimprisonmentforaperiodnotexceedingsixmonthsortobothsuchfineandsuchimprisonment:

ProvidedthatthissubsectionshallnotapplytooffenceswhosepenaltieshavebeenexpresslystatedinsomeprovisionsofthisAct.

(5)Anypersonwhofails,withoutlawfulcause,tomakeareturnortotransmitor deposit any recovery plan, report, account, statement or other documentwhenrequiredtodosointermsofthisActshallbeguiltyofanoffenceandliabletoafinenot exceeding level 6 or to imprisonment for a period not exceeding three months or tobothsuchfineandsuchimprisonment.

57 Liabilityofofficersforoffencesoffund Without derogation from section 385 of the Criminal Procedure and Evidence Act [Chapter 9:07] or from section 56, where a fund commits an offence under this Act: (a) thefund’sprincipalofficer;and (b) everypersonwho is responsible formanaging anypart of the fund’s

business;and (c) everyemployeeofthefund;

shallbeguiltyofthatoffence,unlessitisprovedthatheorshetooknopartinthecommissionoftheoffenceandmaybechargedandconvictedaccordingly. 58 Indemnity of members and employees of the Commission (1)SubjecttotheprovisionsofthisActandanyregulationmadethereunder,nopersonshallincuranypersonalliabilityforanylossordamagecausedbyanyactoromissionbyhimorherincarryingoutthedutiesunderthisActoranyregulationmadethereunder,unlessthelossordamagewasoccasionedintentionallyorthroughrecklessnessorgrossnegligence. (2) The persons referred to in subsection (1) shall include the following— (a) membersoftheboardoftheCommission;

(b) committeemembersoftheboardoftheCommission;

(c) Commissioner;

(d) employeesoftheCommission;and

(e) inspectorsengagedbytheCommission.

59 Conversion of fund Apensionfundmay,withtheapprovaloftheCommission,convertfrom—

(a) definedbenefitfundtodefinedcontributionfund;or

(b) definedcontributionfundtodefinedbenefitfund;or

(c) definedbenefitfundordefinedcontributionfundtoahybridfund;or

(d) hybridfundtoeitherdefinedcontributionfundordefinedbenefitfund;or

(e) anyothersuchconversion.


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60 Registered persons to conduct business prudently and lawfully (1)Every registeredpersonshallconduct itsbusinessandotheroperationsin accordance with sound administrative and accounting practices and procedures, adhering to effective systems of risk-management policies and internal controlsincludingeffectivefunctionsforriskmanagement,compliance,actuarialmattersandinternal audit.

(2)Everyregisteredpersonshall takeeffectivemeasures tocombatmoneylaunderingandthefinancingofterrorismasdefinedintermsoftheMoneyLaunderingand Proceeds of Crime Act [Chapter 9:24].

(3)Anyregisteredpersonwhocommits—

(a) moneylaundering;or

(b) financingofterrorism;or

(c) proliferationfinancing.

shallbeguiltyofanoffenceandliabletothepenaltyasprovidedforintermsoftheMoneyLaunderingandProceedsofCrimeAct[Chapter 9:24].

61 Service of civil penalty order (1)WheredefaultismadeincomplyingwithanyprovisionofthisActforwhichacivilpenaltyisspecifiedtobeleviable,theCommissionermay,inadditionto,andwithoutderogatingfrom,anycriminalornon-criminalpenaltythatmaybeimposedbythisAct,oranyotherlawfortheconductconstitutingthedefault,serveuponthedefaulteracivilpenaltyorderoftheappropriatecategoryspecifiedinsubsection(2)or(3)oranycombinationofsuchordersastheprovisioninquestionmayallow.

(2)Acategory1civilpenaltyorderreferredtoinsubsection(1)providesforacombinationofafixedpenaltyandacumulativepenaltyforaspecifiedcontinuingdefault where the time of compliance is of the essence—

(a) bothofwhichpenaltiesmustbesuspendedconditionallyuponthedefaultertakingtheremedialactionspecifiedinthecivilpenaltyorderwithinthetimespecifiedintheorder;

(b) which, upon the civil penalty becoming operative because of non-compliancewiththerequestedremedialaction,shallprovide—

(i) afixedpenaltyofthemaximumamountforlevelfourteenfornotmeetingthespecifieddeadline;and

(ii) acumulativepenaltyofthemaximumamountoflevelfourforeachday,notexceedingninetydays,forwhichthedefaulterfailstopaytheamountspecifiedinsubparagraph(i).

(3)A category2 civil penalty order provides for a combination of afixedpenaltyandacumulativepenaltyoveraperiodnotexceedingninetydaysforaspecifiedcompletedand irremediabledefault (that is tosayadefault inrespectofwhichnoremediationissoughtbytheCommissionerorispossible),ofwhich—

(a) thefixedpenaltyshallbethemaximumamountspecifiedforlevelfourteen;and

(b) thecumulativepenaltyshallbeapenaltyof themaximumamountoflevelfourforeachday(beginningonthedayaftertheserviceofacivilpenaltyorder)duringwhichthedefaulterfailstopaythecivilpenaltyunder paragraph (a).


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(4)ReferencestotheCommissionerservinguponadefaulteranycivilpenaltyorderintermsofthisAct,istobeinterpretedasrequiringtheCommissionertodeliversuch order (or such notice) in writing to the defaulter (or alleged defaulter) concerned inanyofthefollowingways—

(a) byregisteredpostaddressed to thedefaulter’s (orallegeddefaulter’s)principalofficeinZimbabweorotherplaceofbusinessofthedefaulter(orallegeddefaulter);or

(b) byhanddeliverytothedirector,manageroranyotherseniorofficerofthe defaulter (or alleged defaulter) in person (or through an inspector or otherpersonemployedintheoffice,orapoliceofficer),ortoaresponsibleindividualattheplaceofbusinessofthedefaulter;or

(c) bydeliverythroughacommercialcourierservicetothedefaulter’s(orallegeddefaulter’s)principalofficeinZimbabweorotherplaceofbusinessofthedefaulter(orallegeddefaulter);or

(d) byelectronicmailortelefacsimileattheelectronicmailortelefacsimileaddress furnished by the defaulter (or alleged defaulter) to theCommissioner:

Providedthatinthiscaseacopyoftheorderornoticeshallalsobesenttotheelectronicmailortelefacsimileaddressofthedefaulter’s(orallegeddefaulter’s)legalpractitionerinZimbabwe.

(5)TheCommissionershallnotextendtheperiodspecifiedinacivilpenaltyorderforcompliancetherewithexceptupongoodcauseshowntohimorherbythedefaulter,andanyextensionoftimesograntedshallberecordedbytheCommission.

(6)The Commissionermaycite twoormoredefaults relating todifferentprovisionsofthisActifthedefaultsinquestion—

(a) occurredconcurrentlyorwithinaperiodnotexceedingsixmonthsfromthefirstdefaultordefaultstothelastdefaultordefaults;or

(b) arose in connection with the same set of facts.

(7) Where in this Act the same acts or omissions are liable to both criminal andcivilpenaltyproceedings,theCommissionermayserveacivilpenaltyorderatanytime before the commencement of the criminal proceedings in relation to that default, thatistosayatanytimebefore—

(a) summonsisissuedtotheaccusedpersonfortheprosecutionoftheoffence;or

(b) astatementofthechargeislodgedwiththeclerkofthemagistratescourtbefore which the accused is to be tried, where the offence is to be tried summarily;or

(c) an indictment has been served upon the accused person, where the person istobetriedbeforetheHighCourt;

asthecasemaybe,butmaynotserveanycivilpenaltyorderafterthecommencementof the criminal proceedings until after those proceedings are concluded (the criminal proceedingsaredeemedforthispurposetobeconcludedeveniftheyareappealedortakenonreview).(Fortheavoidanceofdoubtitisdeclaredthattheacquittalofanallegeddefaulterincriminalproceedingsdoesnotexcusethedefaulterfromliabilityforcivilpenaltyproceedings).


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(8)Upontheexpiryoftheninetydayperiodwithinwhichanycivilpenaltyorderofanycategorymustbepaid,thedefaultershallbeguiltyofanoffenceandliabletoafinenotexceedinglevel6ortoimprisonmentforaperiodnotexceedingoneyearortobothsuchfineandsuchimprisonment.

(9)Theamountofanycivilpenaltyshall—

(a) bepayabletotheCommissionandshallformpartofthefundsoftheCommission;and

(b) beadebtduetotheCommissionandshallbesuedforinanyproceedingsin the name of the Commission in any court of competent civiljurisdiction.

(10) If the Commissioner in terms of subsection (9) (b) desires to institute proceedings to recover theamountsof twoormorecivilpenalties in anycourtofcompetentciviljurisdiction,heorshemay,afternoticetoallinterestedparties,bringasingleactioninrelationtotherecoveryofthosepenaltiesiftheordersrelatingtothose penalties—

(a) were all served within the period of twelve months preceding the institution oftheproceedings;and

(b) were served on two or more companies or private business corporations whoseregisteredofficesareinthesameareaofjurisdictionofthecourtbefore which the proceedings are instituted.

(11) Unless the Commissioner has earlier recovered in civil court the amount outstandingunderacivilpenaltyorder,acourtconvictingapersonofanoffenceagainstsubsection(8),mayonitsownmotionorontheapplicationoftheprosecutorandinadditiontoanypenaltywhichitmayimposegivesummaryjudgementinfavouroftheCommissionerfortheamountofanyoutstandingcivilpenaltyduefromtheconvicteddefaulter.

62 Additionaldueprocessrequirementsbeforeserviceofcertaincivilpenalty orders

Where it appears to the Commissioner from written representations submitted tohimorherthattheremaybeamaterialdisputeoffactconcerningtheexistenceoranysalientaspectoftheallegeddefault,theCommissionermustaffordtheallegeddefaulter an opportunity to be heard bymakingverbal representations before theCommissioner, for which purpose the Commissioner shall have the same powers, rightsandprivilegesasareconferreduponacommissionerbytheCommissionsofInquiryAct[Chapter 10:07], other than the power to order a person to be detained incustody,andsections9to13and15to19ofthatActshallapplywithnecessarychanges in relation to the hearing and determination before the Commissioner of the allegeddefaultinquestion,andtoanypersonsummonedtogiveevidenceorgivingevidence before the Commissioner.

63 Regulations (1)TheCommissionmaymake regulationswith approval of theMinister,prescribinganythingwhichunderthisActisrequiredorpermittedtobeprescribedorwhichisnecessaryorconvenienttobeprescribedforcarryingoutorgivingeffecttothis Act and for ensuring the proper conduct of pension and provident fund business in Zimbabwe.


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(2)Regulationsintermsofsubsection(1)mayprovideforthe—

(a) formofanydocumentreferredtointhisActandthemannerinwhichitshallbeprepared,executed,registered,transmittedordelivered;

(b) feestobechargedinrespectofanythingrequiredorpermittedtobedonebyorinrelationtotheCommission;

(c) matters to be included in documents submitted with an application for the registration of a fund and the conditions and procedures for such registration;

(d) appointmentofanactuaryoranauditor,andthematterstobeincludedinanyreportbyaactuaryorauditor;

(e) submissiontotheCommissionoffinancialstatements,reports,statistics,accountsandotherdocuments;

(f) record keeping and preservation of the records by funds and fundadministrators;

(g) fees to be paid for registering of persons, for inspecting or copyingdocumentsandforanythingelsedoneintermsofthisAct;

(h) standardsandrequirementsforexpenses,capitaladequacy,solvencyandthemanagementofrisktobeobservedbyfundsandfundadministrators;

(i) principles relating toemergency, treatmentandutilisationofactuarialsurplus;

(j) minimumqualificationsforofficersoffundsandfundadministrators;

(k) standardsofcorporategovernancetobeobservedbyboardsoffundsandfundadministrators;

(l) processestobeobservedwhereafundconvertsintermsofsection59;

(m) disclosureofremuneration,bonusesandotherbenefitspaidtoorreceivedbyofficersandemployeesoffundsandfundadministrators;

(n) deductionsbyemployersfromemolumentspayabletotheiremployeesofcontributionstobepaidtofunds;

(o) themaximumbenefitsthatmaybepayablebyfunds.

(p) withholdingofbenefitspayablebyafundwherethememberconcerned—

(i) hasborrowedandnotfullyrepaidmoneyfromthefundorfromhisorheremployerandhaspledgedhisorherrightstobenefitsfromthefundassecurityfortheloan;or

(ii) hasbeendischargedbecauseofdishonestyor terroristfinancingandmoneylaunderingwhichhasresultedinhisorheremployersufferingloss;

andthepersontowhomsuchbenefits,oranyportionofsuchbenefits,maybepaid;

(q) principlestobeobservedwithrespecttotheinvestmentofafund’sassets;

(r) conditionssubjecttowhichtheCommissionmayapprovepersonswhoarenotinsurerstoactasfundadministrators;

(s) issues relating to prohibition or control of the cession, pledging or hypothecationofbenefitspayablebyafundandtheprotectionofsuch


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benefitsoninsolvencyorassignmentorfromattachmentorexecutionunderajudgementororderofacourt;

(t) anyactionnecessaryforpromotingorfacilitatingfinancialplanningforretirement;

(u) themanner inwhich employersmay enable employees to obtaininformationandadviceonpensionsandsavingforretirement;

(v) the manner in which board members or managers of an occupational orpersonalpensionfundmayprovidememberswithinformationandfacilitiestoenablethemtoplanfortheirretirement;

(w) electronicregistryfortheCommission;

(x) registrationoffundadministratorsandfundmanager;

(y) treatmentofunclaimedbenefits;

(3)Regulationsmade in termsof subsection (1)mayprovidepenalties forcontraventions thereof:

Providedthatnosuchpenaltyshallexceedafineofleveltwelveorimprisonmentforaperiodofsixmonthsortobothsuchfineandsuchimprisonment.

(4)Regulationsmadeintermsofsubsection(1)shallnothaveeffectuntiltheyhavebeenapprovedbytheMinisterandpublishedintheGazette.

64 Contribution to Pension Protection Fund. Everyfundshall,exceptexemptedbytheCommission,contributetoapensionprotectionschemeestablishedbytheCommissionintermsoftheInsuranceandPensionsCommission Act [Chapter 24:21].

65 Repeal of Cap. 24.09 and savings (1) In this section—

“repealed Act” means the Pension and Provident Funds Act [Chapter 24:09].

(2) Subject to this section, the Pension and Provident Funds Act [Chapter 24:09] is repealed.

(3)Any fund thatwas registered in termsof the repealedAct immediatelybeforetheappointeddayshallbedeemedtohavebeenregisteredintermsofthisAct.

(4)Theboardofeveryfundreferredtoinsubsection(3)shalltakewhateverstepsarenecessarytobringtherulesandmanagementofthefundintoconformitywiththisActwithinsixmonthsaftertheappointedday:

Providedthat,whenamendingtherules,theboardshallpaydueregardtothevestedrightsofthefund’smembersandbeneficiaries.

(5)Anyorder,notice,application,exemption,approval,permissionorotherthingwhichwaslawfullymade,granted,given,issued,doneorcommencedintermsof the repealedAct andwhich, immediatelybefore the appointedday, hadorwascapableofacquiringlegaleffect,shallcontinuetohave,orbecapableofacquiringasthecasemaybe,thesameeffectasifithadbeenmade,granted,given,issued,doneorcommenced,asthecasemaybe,undertheappropriateprovision,ifany,ofthisAct.


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SCHEDULE (Section 29)

FUND ADMINISTRATORS AND FUND MANAGERS

PART A

fund adMinistrators

1. Registration of administrators (1) A person shall not act as an administrator of a fund unless he or she has a certificateofregistrationissuedinaccordancewiththisAct.

(2)Theprovisionsofsubparagraph(1)shallnotapplytoanaturalpersonwhoisanemployeeofafund.

(3)Anypersonwhocontravenesthisparagraphshallbeguiltyofanoffenceandliabletoafinenotexceedlevel14ortoimprisonmentforaperiodnotexceed10yearsortosuchfineandsuchimprisonment.

2. Applicationandgrantofcertificateofregistrationofadministrator (1)Anapplicationforacertificateofregistrationtoactasanadministratorshall be in prescribed form and shall— (a) statewhethertheapplicanthastheadequateprofessionalqualifications,

technicalknowledge, experienceoroperational ability toperform thefunctionsofanadministrator;

(b) containorbeaccompaniedbyanyotherinformationthattheCommissionmayrequireforthepurposeofdeterminingtheapplication;

(c) contain the address of a place in Zimbabwe for the service on the applicant ofanynoticeordocument requiredorauthorised tobeservedon theapplicantunderthisAct;and

(d) beaccompaniedbytheprescribedfee.

(2)TheCommissionmaygrantacertificateofregistrationtoanapplicantwhomeetstherequirementsspecifiedinsubsection(1).

(3) The Commission shall publish in the Gazette and in a newspaper with wide circulationorinanymanneralistofallregisteredadministrators,atleastonceineveryyear.

(4)Apersonwhoactsasanadministratorofafundwithoutacertificateofregistration issued under this Act commits an offence and is liable on conviction to a finenotexceedinglevel14ortoanimprisonmentforaperiodnotexceeding10yearsimprisonmentortobothsuchfineandsuchimprisonment.

3. Refusaltograntcertificateofregistrationofadministrator

(1)TheCommissionmay refuse to grant a certificate of registration to anapplicantiftheCommissionissatisfiedthat—

(a) the information contained in the application is false in anymaterialparticular;

(b) theapplicantisnotafitandproperpersonasprescribed;

(c) theapplicanthaseverbeenanadministratorofafundwhosecertificateofregistrationwasrevokedbytheCommissionduetoanyfaulteitherfullyorpartiallyoftheapplicant;or

(d) theapplicantdoesnotmeetanyprescribedrequirementsspecified.


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(2)WheretheCommissionrefusestograntacertificateofregistrationtoanapplicant,theCommissionshall,withinfiveworkingdays,notifytheapplicantofitsdecisionandspecifythereasonsforrefusalinwriting.

4. Restriction on registration of administrator

Apersonshallnotbeissuedacertificateofregistrationasanadministratorofafund if he or she— (a) hasbeensentencedtoimprisonmentbyacourtofcompetentjurisdiction

forsixmonthsormore; (b) isdeclaredbankruptorinsolvent,orhasenteredintoanarrangementwith

hisorhercreditors; (c) waspreviouslyinvolvedinthemanagementoradministrationofafund

whosecertificateofregistrationhasbeenrevokedunderthisAct,duetoanyfaultorpartiallyoftheapplicant;

(d) isdisqualifiedunderanyotherwrittenlaw,orhisorherholdingofficeassuchisdeterminedbytheCommissionasbeing,inanyway,detrimentalto the fund.

5. Validityofcertificateofregistrationofanadministrator (1)Acertificateofregistrationissuedtoanadministratorshallbevalidforoneyearandmaybereneweduponpaymentoftheprescribedfee.

(2)Anapplicationfortherenewalofacertificateofregistrationundersubsection(1)shallbemadeatleastthreemonthsbeforetheexpiryofacertificateofregistration.

6. Revocationofcertificateofregistrationofadministrator

(1)TheCommissionmayrevokethecertificateofregistrationofanadministratorif— (a) theCommissiondiscoversafterthecertificateofregistrationhasbeen

issued that the administrator made a false statement in relation to the application;

(b) an event occurs which renders the administrator ineligible to perform his orherfunctionsasadministrator;

(c) the administrator is in breach of any condition of the certificate ofregistration;

(d) theadministratorisdisqualifiedbyvirtueofparagraph5; (e) theadministrativeceasestobeafitandproperpersonasmaybeprescribed; (f) the administrator does not complywith anyprovision of thisAct, or

regulations made under this Act.

(2)TheCommissionshallgive theadministratorat least thirtydaysnoticeinwriting specifying the reasons for the intended revocation of the certificate ofregistration.

(3)TheCommission shall, before revoking a certificate of registration ofanadministrator,consideranyrepresentationsmadeinwritingbytheadministratoropposing the revocation.

(4) The Commission shall revoke the certificate of registration of anadministratorwithinthirtydaysafterissuingtheexpirationofthenoticereferredtoinsubparagraph (2) , if the administrator has not opposed the revocation or the Commission isnotsatisfiedbytherepresentationmadebytheadministratorundersubparagraph(3).


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4. Functions of administrator (1) An administrator of a fund shall— (a) ensuretimelypaymentofcontributionsandbenefits; (b) carryoutdaytodayadministrationandmanagement; (c) advisethefundonstrategicfundmattersincludingproperassetliability

allocationdecision; (d) advice the fund on matters connected with or incidental to pensions laws

orasmaybeprescribedunderthisAct; (e) keeptherecordsofthefund; (f) processreceiptsandinvoice; (g) producequarterlyandannualaccountsforaudit; (h) organiseandarrangeformeetingsandtakeminutestherein;and (i) prepareannualbenefitstatementsandboardmemberreports; (j) advisetheCommissiononanymaterialissuesrelatingtotheoperations

and strategic issues of the fund.

(2) An administrator of a fund shall not act as a custodian, board member or fund manager of the same fund.

(3)Theprovisionsofsubsection(2)shallapplytoanyassigneeorrelatedpartyof the administrator.

(4)Anypersonwhocontravenessubparagraph(2)shallbeguiltyofanoffenceandliabletoacategory2civilpenalty.

(5)PartVtoPartIXofthisActshall,withnecessarychanges,applytofundadministrators.

PART B

fund Manager

(1) A person shall not act as fund manager unless he or she has been permitted to do so in terms of section 38 of the Securities and Exchange Act [Chapter 24:25] andhasbeenapprovedbytheCommission

(2) A fund manager shall (a) be responsible for management of funds and other assets of the fund for

purposesofinvestmentinaccordancewiththefund’sinvestmentpolicyandtherulesofthefund;

(b) provideadvisoryservicesontheinvestmentofthefundsanddisseminatinginformation concerning the assets available for investment of scheme funds.

(3) A fund manager of a fund shall not act as a custodian, board member or administrator of the same fund.

(4)Theprovisionsofsubparagraph(2)shallapplytoanyassigneeorrelatedpartyofthefundmanager.

(5)Anypersonwhocontravenesthisparagraphshallbeguiltyofanoffenceandliabletoafinenotexceedlevel14ortoimprisonmentforaperiodnotexceed10yearsortosuchfineandsuchimprisonment.

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