Draft Registration, Licensing

1
Draft Registration, Licensing Reporting
Regulations

• Charmaine Lindsay Senior Pensions
  Analyst, Financial Services Commission January 24
  -28, 2005

2
Draft Registration, Licensing Reporting
Regulations

• Application for Registration
• Conditions for Registration Licensing
• Certificates Licences
• Reporting Requirements
• Discontinuance of Business

3
APPLICATION FOR REGISTRATION

• Registrants
• Superannuation funds
• Retirement schemes
• Trustees individual or corporate
• Responsible Officers
• Licensees
• Administrators
• Investment Managers

4
Conditions for Registration Licensing
5
Funds Schemes

• The name of a fund or scheme should not cause
  confusion
• The fund or scheme, if approved under the Income
  tax Act, was being operated in accordance with
  the requirement of that act
• The constitutive documents must be consistent
  with the requirements set out in appendix 1A

6
Funds Schemes (Contd)

• Sponsor (scheme only) is a registered life
  insurer or licensed investment manager and its
  employees engaged in the selling and distribution
  of scheme contracts are fit and proper persons
  registered under the Insurance/Securities Act
• These conditions are in addition to those set
  out in section 10,13 and 14 of the Act

7
Trustees

• An actuary or auditor cannot act as a trustee of
  a fund or scheme for which he/she provides
  actuarial or audit services as the case may be
• Regarding a corporate trustee
• covered persons must be fit and proper and able
  to perform duties of a trustee
• Articles of association, where applicable,
  permits the carrying on of superannuation funds
  and retirement schemes business
• An individual trustee and the employees of a
  corporate trustee must satisfy any specified
  conditions relating to training or examination

8
Investment Manager/Administrator

• Administrator Investment
  Manager
• Solvent Yes
  Yes
• Capital Base No requirement
  To be prescribed
• Prof. Indemnity 5 million
  5 million
• Fidelity Guarantee No requirement 10
  million
• or such other limits as may be specified by
  way of notice
• Responsible Officer has been appointed
• The applicants affairs are managed by qualified
  and capable persons

9
Investment Manager/Administrator (contd)

• the employees must satisfy any specified
  conditions relating to training or examination
• Articles of Association, if applicable, provides
  for the carrying on of investment management or
  pension administration business, as the case may
  be
• Applicant adheres to sound business standards and
  financial practices and will continue to do so
• These conditions are in addition to any other
  conditions set out in section 7 and 8 of the Act

10
Certificates and Licences
11
Notification Surrender of Certificates

• Where a trustee or responsible officer ceases to
  act in their respective capacities, for reasons
  other than death, such a person must forthwith
  return their certificate of registration to the
  commission and state the date of cessation and
  reason therefor
• In the case of death, the Board of Trustees or
  Board of Directors, as the case may be, shall so
  act

12
Reporting Requirements
13
Change in Particulars

• Any change in the particulars included in an
  application for a registered or licensed person
  or entity must be reported to the Commission
  within 14 days of the change occurring.

14
Fund Scheme

• Within 120 days of the end of the funds/schemes
  plan year file with the Commission
• Plan Information Report
• Certified Financial Return
• Financial statements which should be audited
  subject to permitted exemptions
• In addition a scheme must submit
• Information Folder
• List of the persons selling/distributing the
  schemes contracts

15
Fund Scheme (contd)

• Exemption from filing audited financial
  statements - Funds Only
• Financial statements need not be audited if
• there are fewer than fifty members or such other
  number specified by the Commission by way of
  notice and
• there are less than thirty million in total
  assets (fair value) or such other amount
  specified by the Commission by way of notice and
  
• all funds are held on the account of investment
  managers or in Type I Pooled Funds of investment
  managers and
• audited statement are not required under the
  funds constitutive documents

16
Corporate Trustee

• Within 120 days of the end of the companys
  financial year file with the Commission
• Annual report containing audited financial
  statements
• Certification of tax compliance for the last
  financial year

17
Investment Manager

• Within 120 days of the end of its financial year
  the company shall file with the Commission
• Annual report containing audited financial
  statements
• Certification of tax compliance for the last
  financial year
• Investment Manager s Return
• Evidence of professional indemnity and fidelity
  guarantee insurance exceeding limits prescribed
• Certification of fulfillment of capital and
  solvency requirements
• Quarterly Fund Status Report within 60 days of
  the end of a quarter

18
Administrator

• Within 120 days of the end of its financial year
  the company shall file with the Commission
• Annual report containing audited financial
  statements
• Certification of tax compliance for the last
  financial year
• Administrators Return
• Evidence of professional indemnity insurance
  exceeding limit prescribed
• Certification of fulfillment of solvency
  requirements

19
Discontinuance of Business
20
Investment Manager/Administrator

• Where it intends to discontinue operations it
  shall
• Within 14 days of the decision notify the
  Commission of the decision and the proposed
  effective date of discontinuance
• Give notice in the Gazette no later than 14 days
  after notification to the Commission and at least
  120 days prior to the proposed effective date

21
Investment Manager/Administrator (contd)

• Not later than ninety days prior to the proposed
  effective date of discontinuance give to the
  Commission
• audited accounts of its business
• a list of all outstanding amounts owed to
  funds/schemes or their member or beneficiaries
• A plan for transfer of its business to another
  investment manager or administrator, as the case
  may be
• The Commission may refuse to approve the
  plan giving reasons for such refusal and
  requesting changes as it deems necessary
• Not later than 2 days prior to effective date of
  discontinuance surrender licence together with
  certification that transfer of its business to a
  new administrator/investment manager has been
  completed

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• THE END