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COVID-19 South Africa: Extension of period for compliance with the submission of statutory returns

  • Market Insight 23 April 2020 23 April 2020
  • Africa

  • Coronavirus

COVID-19 South Africa: Extension of period for compliance with the submission of statutory returns

On 21 April 2020 the FSCA issued FSCA General Notice 2 of 2020 ("FSCA Notice") in terms of section 279(1) of the Financial Sector Regulation Act, which provides for the extension of the period for submission of statutory returns by the following financial services entities (i) financial services providers, (ii) Collective Investment Scheme ("CIS") Managers, (iii) pension fund administrators, (iv) friendly societies; and (v) long and short-term insurers.

Inter alia, the FSCA Notice provides:

  1. in the case of financial services providers whose annual financial statements are due for submission to the FSCA within 4 months of the said providers financial year end in accordance with section 19(2)(b)(iii) of the Financial Advisory and Intermediary Services Act 2002, should the submission date be during the period between 31 March 2020 and 31 October 2020, a 4 month extension has now been provided;
  2. in respect of CIS Managers who, in terms of section 90(1)(a) of the Collective Investment Schemes Control Act 2002, are required to lodge duly audited financial statements with the FSCA within 90 days after the close of its financial year, a 3 month extension has been granted if the submission date for such statements fall in the period between 31 March 2020 and 30 September 2020; and
  3. in the case of the conduct of business returns which long-term and short term insurers are required to submit by 30 April 2020, such returns are now due by 31 May 2020.

The FSCA Notice follows the recent PA Communiqué 1 of 2020 issued by the Prudential Authority on 8 April 2020, wherein the Prudential Authority extended the period for compliance with the specific reporting requirements set out in certain financial sector laws, which we discussed in our recent article titled "Financial Services regulation in times of COVID-19", which you can access here.

Difficulties experienced by insurers in complying with their statutory reporting obligations pursuant to COVID-19 was identified by the Prudential Authority and the FSCA as one of the immediate priorities which insurers should consider in their Joint Communication 1 of 2020 COVID-19: Regulatory response issued on 16 April 2020.  This joint communication further sets out the said Authorities’ joint position concerning the COVID-19 pandemic and its impact on the economy, specifically, the South African insurance industry.

For a copy of FSCA General Notice 2 of 2020, please click here

For a copy of the Joint Communication 1 of 2020 COVID-19: Regulatory response, please click here.

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