Staff Writer
The Insurance and Pensions Commission says it has not approved any of the currency conversion reports submitted by the industry, as they compromised the credibility of the currency conversion exercise, extending the deadline for submitting audited financial statements of pension and provident funds to 31 May 2025.
This follows the analysis of the currency conversion reports as of 5 April 2024 and mid-year reports as of 30 June 2024 received by the Commission from the industry.
In Circular 8 of 2025, Ipec said it noted that most of the conversions were not done in line with the relevant International Financial Reporting Standards (IFRS).
Again, the regulator noted a lack of sufficient disclosures in the actuarial conversion reports, including incidences where some entities did not show actuarial liabilities before and after currency conversion.
“The above observations compromised the credibility of the currency conversion exercise, resulting in the Commission not approving any of the submitted currency conversion reports.
“To ensure the currency conversion process is accurately done, all entities are required to include supplementary information in the 2024 audited financial statements that show the following details as of the 5th of April 2024:
“The income statement/statement of changes in net assets available for benefits before and after conversion, the statement of net assets available for benefits before and after conversion, and a detailing of how the conversion was carried out,” Ipec said.
In addition, Ipec said actuarial reports as of the 31st of December 2024 should sufficiently provide supplementary actuarial information relating to the 2024 currency conversion as outlined in Circulars 8 and 11 of 2024.
The regulator added that the reporting period is 12 months in 2024, and the financial statements should have ZWG 2023 comparatives.
“Consequently, the deadline for submission of the 2024 audited financial statements of pension and provident funds has been extended to 31 May 2025.
“By 31 May 2025, regulated entities should ensure that they have submitted all the reports and related disclosures as detailed in Circular 34 of 2022,” Ipec said, adding that failure to comply with the provisions was an offence which attracts a category 1 civil penalty in terms of section 31 (4) of the Act.
