LEGAL NOTE: NOVEMBER 2025 – SUMMARY OF LEGISLATIVE UPDATES 2025

ACTS, REGULATIONS & BILLS

COFI BILL UPDATE

• Currently the focus is on Phase 2 of the COFI Bill transition work which entails the development of a broad set of themed frameworks (Phase1: The initial high-level design of the new framework; Phase 3: focuses on how to transition all instruments under existing sectoral laws to the COFI Bill).

• FSCA will informally consult on a variety of themed frameworks during the 2025/2026 business year.

• The FSCA is also in the process of refining its planning for this project which entails setting out clear timelines for implementation of the themed frameworks.

• Communication surrounding implementation of this project and COFI Bill readiness will, in due course, be communicated publicly.

• Should there be delays in finalising the COFI Bill, it is likely that the FSCA will start to introduce the themed frameworks through a staggered approach.

Status:

• Internal process is underway by National Treasury for Cabinet to introduce the Bill to Parliament and this is moving quickly.

• National Treasury has taken the DG through the Bill and is waiting to see if the Minister will also require a debriefing on the Bill.

• Parliament will determine consultation period and industry to decide if to lobby for longer period to consult / make submissions.

NOTICES, CIRCULARS, GUIDANCE NOTES,

COMMUNICATIONS, DIRECTIVES & CONDUCT STANDARDS

JOINT STANDARD 2 OF 2024 ON CYBERSECURITY AND CYBERSECURITY RESILIENCE

• The Joint Standard came into effect on 1 June 2025.

• It applies to financial institutions, such as pension funds registered under the Pension Funds Act 1956 (PFA) and administrators approved in terms of section 13B of the PFA.

• The Joint Standard outlines the requirements for sound cybersecurity practices, ensuring financial institutions are prepared for cyberattacks and equipped to respond and recover effectively.

• The Joint Standard mandates specific practices for risk management, incident response, and continuous training, emphasizing that ultimate responsibility lies with the governing body of the institution.

• Financial institutions must integrate cybersecurity and resilience into their organizational strategies and align them with business risk and strategic goals.

OMNI CBR AND IRS

• The FSCA has adopted a multi-year organisation wide Digital Transformation Strategy, which includes major investments in new and enhanced technology, including the procurement of supervisory technology - the Integrated Regulatory Solution (IRS).

• The OMNI-CBR will no longer be rolled out in the previously communicated format and manner. The previous version of the OMNI-CBR attempted to achieve similar objectives to the IRS but was designed for a largely manual, less modernised supervisory environment.

• The first component of the revised approach will be the introduction of an OMNI-Risk Return to support the automated Risk Model (or risk engine) that forms the core of the IRS. The Risk Model is a standardised, system-driven mechanism for calculating risk scores uniformly across all entities supervised by the FSCA.

• The FSCA is working on a detailed communication and engagement plan, which will provide further information on the operation of the IRS, planned industry readiness and awareness initiatives, further consultations on the revised OMNI-Risk Return and a clearer timeline for overall implementation. Details around a planned industry pilot for testing the IRS will also be provided in the third quarter of 2025. It is envisaged that financial institutions will then have a year to get ready prior to the anticipated go-live date of the new platform.

FSCA EXEMPTION OF RETAIL FUNDS IN RELATION TO AMALGAMATIONS AND TRANSFERS FROM THE REQUIREMENTS OF SECTION 14(1) OF THE PENSION FUNDS ACT

The Financial Sector Conduct Authority published the Notice on 14 July 2025.

The conditional exemption in the Notice applies to retail funds, defined as retirement annuity (RA) funds, pension preservation funds, and provident preservation funds. These funds are exempt from the requirements of section 14(1) for the following types of transfers:

• Transfers between RA funds.

• Transfers between preservation funds (pension

• or provident).

• Transfers from a preservation fund to an RA fund.

• The exemption is subject to the conditions outlined in

• paragraph 4 of Notice 8. These are:

- Both funds must maintain transaction records, available to the FSCA upon request.

- Transfers must comply with the rules of the involved funds.

- The relevant FSCA forms must be completed and certified.

- Documentation must include proof of communication of the proposed transaction,

resolution of objections, and compliance with section 15B of the PFA (surplus schemes),

where applicable.

- Assets and liabilities must be transferred within 180 days from the effective date.

- Transferred assets must be adjusted (increased or decreased) with the fund return

from the effective date to the final settlement date.

OMBUD COUNCIL STRATEGIC PLAN 2025 - 2030

The Ombud Council (Council) has published its Annual Performance Plans for 2024–2025 and 2025–2026, along with the Strategic Plan for 2025–2030. These documents outline

the Council’s priorities for strengthening the financial ombud system, increasing public awareness, and supporting key reforms:

• objections to the processing of personal information;

• requests for the correction or deletion of personal information, as well as the destruction of records containing personal information; and

• requests for consent from the data subject before processing their personal information for direct marketing through unsolicited electronic communications.

CONDUCT STANDARD:

CONDITIONS PRESCRIBED IN RESPECT OF PENSION FUND BENEFIT - ADMINISTRATORS

The FSCA published Conduct Standard 2 of 2025 (RF) on 6 August 2025. This Conduct Standard replaces the current Board Notice 24 of 2002, which prescribed the conditions in respect of benefit administrators.

There are transitional periods for the implementation of certain parts of the Conduct Standard as indicated below:

INDUSTRY UPDATES ON MATTERS AFFECTING RETIREMENT FUNDS

OPFA clarification on the Application of the ‘In Duplum’ rule to late payment interest on pension fund contributions.

The Pension Funds Adjudicator, issued OPFA Communication 1 of 2025, stating that her Office considers itself bound by the judgment in Blue Crane Route Municipality v Municipal Workers Retirement Fund and Another. The OPFA will align its rulings with a judgment which found that the in duplum rule applies to penalty interest charged to employers for overdue retirement fund contributions. The in duplum rule is a common law principle stipulating that the total amount of interest charged on an overdue debt cannot exceed the original capital sum of that debt. The rule limits the accumulation of interest charges.

This publication is provided as general information only. It is not advice and should not be relied upon without a discussion regarding your own facts and circumstances.

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