FSCA sights on two-pot fees

Authority wants to ensure transparency, disclosure, fairness of fees.

- Liesl Peyper

The Financial Sector Conduct Authority (FSCA) says it is identifying fund administrators who charge high transaction fees for members who withdraw funds under the two-pot retirement system, and they will be asked for the reasons thereof.

The watchdog hosted a media roundtable discussion on Friday where trends and challenges under the two-pot system came under the spotlight.

It also gave an update on employers who are in arrears over their workers' retirement contributions to pension funds.

The FSCA's Corlia Buitendag, departmental head of retirement funds conduct supervision, shared some of the key challenges that have emerged since the two-pot system came into effect on 1 September.

They include system-related issues due to the volumes of withdrawal requests, account verification and payment delays, and slow turnaround times.

Consumer complaints include poor communication from fund administrators, website downtime, delays in receiving payouts and high transaction fees.