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Work Starts on Pensions Bill
Fiji Times Limited
Fiji
November 07, 2005
THE Government is drafting new laws to allow for competition against the multi-billion dollar Fiji National Provident Fund in 2007.
The Superannuation Supervision Bill targets the establishment of companies to manage pensions and retirement funds and is being drafted by the Reserve Bank of Fiji.
It is expected to be tabled in Parliament next year.
If enacted, the legislation means direct competition for the FNPF in what is a $2 billion industry.
The Bill is part of government's medium-term financial strategy, which was released on Friday with the 2006 national budget.
The RBF announced it had begun work on drafting the Superannuation Supervision Act and hoped to have it in place before 2007.
"The Superannuation Supervision Act will bring into supervision all entities that take on a superannuation structure and offer superannuation products," a RBF document said.
"Such legislation will enable the formation of a supervisory and policy structure that will govern the conduct of superannuation entities or entities that are involved in superannuation products."
This will require that any superannuation companies intending to set up in Fiji be licenced and fulfil RBF supervisory requirements.
The Government has announced over the past two years it intended to deregulate the industry.
The Reserve Bank said it would conduct consultations on the Bill, including talks with FNPF, before it enacted the Bill.
The RBF statement said it had already begun implementing an experimental regulatory framework with FNPF.
The framework was implemented to help the RBF keep tabs on the industry as part of its role as supervisor before it was opened up for competition.
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