As soon as the Minister publishes the FIMA effective date in the government gazette, all funds must comply with its prescriptions, whatever their rules may state. Although the FIMA affords funds 12 months to submit FIMA-compliant rules, any rule that is inconsistent with the FIMA is unlawful, and the fund may not follow such a rule. It places funds in an awkward position and will likely lead to many misguided challenges by stakeholders against funds for not following their rules. To avoid a conflict between the fund’s rules and the FIMA, trustees must attempt to change those rules that conflict with the FIMA soonest!
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This article summarises the understanding, observation and notes of the author and lays no claim on accuracy, correctness or completeness. RFS Namibia (Pty) Ltd does not accept any liability for the content of this contribution and no decision should be taken on the basis of the information contained herein before having confirmed the detail with the relevant party. Any views expressed herein are those of the author and not necessarily those of RFS.