The Insurance and Pensions Commission of Zimbabwe (IPEC) has implemented a new regulatory framework to regulate the fees charged by pension funds. This measure aims to protect affiliates against excessive costs and improve the return on their retirement benefits.
According to the institution, this framework allows for the evaluation of the value added by various service providers involved in the management of retirement schemes, including asset managers, fund administrators, transfer secretaries, custodians, auditors, and actuaries. The goal is to ensure that their fees do not significantly impact the benefits received by members.
The regulatory authority emphasizes that the services provided must generate value proportional to their cost. In this regard, IPEC has also introduced a fee schedule capping the fees charged to pension funds by various service providers. This initiative is part of a logic to strengthen consumer protection and improve transparency in the sector.
Through this reform, Zimbabwe aims to continue its efforts to regulate the pension market, in order to enhance the sustainability and fairness of retirement schemes.
