A suitable regulatory regime for bargaining council funds as independent retirement funds

Abstract

In this dissertation the purpose and functioning of bargaining council retirement funds have been considered with a focus on the consequences which statutory development had on bargaining council funds as well as the regulatory regime which became applicable to these types of retirement funds. The research considered the historic regulatory regime under which bargaining council funds commenced and had developed until legislative changes caused a complete deviation from the historic position. These changes resulted in the regulatory oversight of bargaining council funds being replaced with a complete new regulatory regime. These changes had various consequences which seemingly had not been properly considered alternatively were unintended prior to the legislative changes were considered. The amendments were made notwithstanding the views expressed by the Supreme Court of Appeal as to the importance of the bargaining council funds retaining their independence within its then regulatory regime. The impact of the legislative changes are considered with specific reference to the impact it has had on constitutionally protected rights in particular the right to collective bargaining and freedom of association. In addition to this and from a regulatory perspective the oversight of retirement systems was considered to establish the effect on the recommendation of having bargaining council funds revert back to the position it had found itself in prior to the statutory amendments being promulgated. This was done having regard to the fact that South Africa has recently moved to a Twin Peaks system of financial regulation and the main driver behind this move is to create a safer financial services industry.