House Approves Pension Regulations to Modernise Fees and Strengthen Oversight

The House of Representatives, on Wednesday (June 10), approved the Pensions (Superannuation Funds and Retirement Schemes) (Registration, Licensing and Reporting) (Amendment) Regulations, 2026, aimed at modernising the regulatory fee framework and strengthening oversight of the private pensions sector.

The Regulations, which were tabled in the House on March 24, will address structural mismatches between the Financial Services Commission (FSC) regulatory expenses and its fee collection.

Providing background on the resolution in the House on Wednesday, Minister of Finance and the Public Service, Hon. Fayval Williams, explained that although the FSC regulates and supervises the private pension industry under the Pension Superannuation Funds and Retirement Schemes Act and its attendant Regulations, the agency’s broader fee structure has remained unchanged for nearly two decades.

“Despite the evolution of the regulatory landscape, the FSC’s fee structure has not been revised since 2008. Currently, there are mismatches in relation to the regulatory expenses and the fees,” she stated.

Minister Williams noted that while full cost recovery has been achieved in the pension sector, the FSC has not been able to realise full cost recovery across its other regulated sectors.

As such, she said there was cross-subsidisation by the pension industry, thereby violating Principle Two of the cost recovery model.

The Minister highlighted that although full cost recovery is being achieved internally by private pensions, “there are several strategic priorities that have either been delayed or are unable to be adequately funded”.

Mrs. Williams noted that to achieve full cost recovery and mitigate cross-subsidisation, the FSC has undertaken a comprehensive review of its existing fee structure, including that of the pension sector.

“The proposals for the pension industry include the introduction of a renewal fee of J$5,000 for the periodic fit and proper assessments of trustees and responsible officers, as well as revisions to Forms 13 and 14. These forms will be updated to reflect certificate expiration, thereby facilitating the renewal process,” she explained.

Minister Williams stated that the revision will allow funds to be dedicated to the strategic priorities of the Pensions Division and ensure full cost recovery following the correction of cross-subsidisation.

Further amendments introduce expiration dates for certificates of registration and appointments of trustees and responsible officers, addressing concerns about their validity and renewal fees.

“The effective date for payment of the renewal fee should be the commencement date of the Regulations… the date on which the Regulations come into operation. All trustees and responsible officers will be required to renew their certificates every five years,” Mrs. Williams stated.

She further noted the introduction of a J$5,000 renewal fee for the fit and proper assessment of trustees and responsible officers.

“The renewal fee will be set at the same amount as the initial assessment fee, as a review process for renewal is essentially equivalent to that of the initial assessment,” the Finance Minister outlined.

She reiterated that the proposed amendments represent a critical step in strengthening the FSC’s capacity to achieve full cost recovery.

“Introducing a renewal fee along with revising the relevant forms, to include expiration dates, will strengthen the oversight of trustees and responsible officers. This will safeguard pension plan beneficiaries and help maintain confidence in the pension sector.

“Furthermore, the revised fees will enable the FSC to better fund its strategic priorities, enhance the stability, integrity, and reputation of the pensions industry, and recover costs associated with its oversight responsibility,” Mrs. Williams added.