Supervision Department

Until July 2010, this department was called Compliance department. It has since changed its name to Supervision Department to be in line with the new risk based supervision model adopted by the Authority. The department has now revised its supervisory approach from compliance-based to a more proactive risk based supervision system effective 1st July 2010. The department is mandated to effectively supervise and enforce the law in order to achieve timely quality service to the retirement benefits sector. To conduct its function appropriately the department is split into three sections: registration & licensing, compliance and complaints. A brief description of each section function is provided below.

Registration & Licensing Section

Registration & Licensing Section is in charge of registering retirement benefit schemes and licensing of service providers (Administrators, Fund Managers and Custodians). The idea is to supervise entry of schemes and service providers into the pension system. RBA restricts and controls entry of a scheme into the market. This is intended to eliminate the risk of incompetence or unqualified entrants into the system. The indicated external service providers of scheme must be registered annually.

Compliance section

Compliance section monitors the retirement benefit schemes once they have been registered. Monitoring involves information gathering, enforcing reporting requirements and exercising the power to ask for more information on ad-hoc basis. The information is collected through regular returns, on-site inspections, supplementary information, media monitoring, and service providers’ reports. These collated information aides the Authority to monitor the status and activities of schemes. This will help in risk mitigation activities through interventions to ensure corrective measures are undertaken to rectify any noticed anomalies.

Complaints Section

The Complaints Section handles complaints from aggrieved parties of schemes such as members with a purpose of resolving those industry disputes. Dispute resolution within the shortest time possible is intended to instill confidence in the system. Complaints are formally lodged at the Authority using standard complaint forms.