Annexure B. To the [directors of name of benefit administrator] 1 and to the Registrar of Pension Funds

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1 Annexure B Report of the Independent Auditor of [name of administrator] on the Conditions in respect of Benefit Administrators on behalf of Pension Funds To the [directors of name of administrator] 1 and to the Registrar of Pension Funds We have undertaken an engagement on [insert name of administrator] ( the administrator ) for the year ended [insert year end date] on the Conditions determined in respect of administrators acting on behalf of pension funds in terms of section 13B of the Pension Funds Act, 1956 ( the Act ). We are required to Provide a reasonable assurance conclusion on the design, implementation and operating effectiveness 2 of the s identified by management as set out in Schedule A. Report on compliance with the requirements of Section 13B of the Act and the Conditions set out in the Board Notice XX of 2012 ( the Conditions ), as set out in Schedule B. Report on whether the information contained in Schedule C, which sets out the nature of each fund administered, and in relation to the nature of each fund administered, the total number of funds, the total number of members, the total number of pensioners, the total number of unclaimed s and the total assets, agrees to the relevant underlying records. Benefit administrator s responsibilities The administrator is responsible for Maintaining adequate records of the assets of each retirement fund and the s paid out under its administration and for such internal as the administrator determines is necessary, relevant to the administration of assets of each retirement fund and the s paid out under its administration. The administrator is also responsible for the identification of the s as set out in Schedule A, Compliance with the requirements of Section 13B of the Act and the Conditions set out in Board Notice XX of 2011 as set out in Schedule B. The preparation of the information contained in Schedule C that is free from material misstatement, whether due to fraud or error. Auditor s responsibility Our responsibility is to Express a reasonable assurance conclusion on the s identified by the administrator as set in Schedule A based on our work performed Report on any non-compliance with the requirements of Section 13B of the Act, and the Conditions set out in the Board Notice XX of 2011 as set out in Schedule B that came to our attention, based on our work performed. Report on any matters in respect of the information in Schedule C that does not agree to the underlying records that came to our attention, based on our work performed. We conducted our assurance engagement on in accordance with the International Standard on Assurance Engagements ISAE 3000 International Standard on Assurance Engagements other than Audits or Reviews of Historical Financial Information. This standard requires us to comply with ethical requirements and to plan and perform our assurance engagement to obtain reasonable assurance about the design, implementation and 1 Appropriate addressee. 2 effectiveness is not applicable to an engagement for a report on application for approval as a administrator. Page 1 of 23

2 operating effectiveness of the s. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Inherent limitation on the s Schedule A Because of their nature, the s at the administrator may not prevent or detect or correct the errors or omissions in processing or reporting transactions and balances. In addition, the projection to the future of any evaluation of the fairness of the presentation of the description or the conclusions of the suitability of the design or operating effectiveness of the s to achieve the related objective is subject to the risk that s at the administrator may become inadequate or fail. Summary of work performed - Schedule B Our work performed included: Inquiring of the administrator s management primarily responsible for financial and accounting matters and regulatory compliance; and Inspecting supporting documentation considered necessary to assess compliance with the sections specified above. Summary of work performed - Schedule C Our work performed included: Agreeing the total number of funds, members, pensioners, unclaimed s and the total of the assets held to the underlying records; Agreeing the number of members, pensioners, unclaimed members and the value of assets for a sample of funds to the funds records and/or annual financial statements; and Obtaining written representations from the management of the administrator regarding matters that we have considered relevant to this engagement. Conclusion In our opinion the s identified in Schedule A have been designed, implemented and operated effectively for the period [insert period], as set out in Schedule A. 3 Based on our work performed, no non-compliance with the requirements of Section 13B of the Act and the Conditions set out in the Board Notice XX of 2011, as set out in Schedule B, [other than: list any non-compliance], came to our attention. Based on our work performed, we found that the information contained in Schedule C agreed with the relevant underlying records, [other than: list any non-agreement]. 3 Where the opinion is modified, refer to ISA 705 for the format of the basis of modification and opinion paragraphs. Page 2 of 23

3 Restriction on use Our report is for the information of the addressees relative to the Conditions determined in respect of administrators acting on behalf of pension funds in terms of section 13B of the Act and may not be suitable for another purpose. Auditor s Signature Name of individual registered auditor Registered Auditor Date of auditor s report Auditor s address Page 3 of 23

4 Schedule A and s in respect of the s to meet the objectives of the requirements of the administrator Instructions for completion of Schedule A: Refer to the columns indicated in the table below: A. Control objective: The objectives are derived from the Conditions determined in respect of administrators acting on behalf of pension funds. B. Key : Management of the identify the s implemented (description). C. Indicate whether s is considered appropriate to achieve the objective (yes/no). D. Implementation Indicate whether the s have (yes/no). E. effectiveness Indicate whether the s implemented (yes/no). F. Brief summary of work performed to evaluate the s implemented by management and evaluate the operating effectiveness of such s (description). G. weaknesses and Report identified the design of s and/or the implementation of the s and/or s not operating effectively and based on work performed and evidence obtained (description). H. Management response Insert management of the administrator s response to identified internal s. Page 4 of 23

5 Schedule A - and s in respect of the s to meet the objectives of the requirements of the administrator A B C D E F G H Key : has 1. Controls provide reasonable assurance regarding the governance of the administrator 1.1 Controls provide reasonable assurance that ethical values and integrity are enforced and communicated by management. 1.2 Controls provide reasonable assurance that competent individuals are hired and that staff have the necessary skills and character traits of honesty and integrity to perform their tasks. 1.3 Controls provide reasonable assurance that risks in respect of unethical behaviour are identified, monitored and mitigated. 1.4 Controls provide reasonable assurance that risks are identified, monitored and mitigated. 1.5 Controls provide reasonable assurance that there is compliance with relevant laws and regulations. 1.6 Controls provide reasonable assurance that related parties and conflicts of interest are identified and managed (internal and external this also includes communication to those parties related to the the s and Page 5 of 23

6 administrator Key : has the 2. Controls provide reasonable assurance regarding the administrator s ability to communicate effectively with internal and external parties Controls provide reasonable assurance that information is communicated to internal and external parties (clients, other third parties and regulators) in an accurate and timely manner and is compliant with the relevant legislation. 3. Controls provide reasonable assurance regarding the administrator s internal processes 3.1 Controls provide reasonable assurance that policies and procedures are in place to establish an environment of effective internal s. 3.2 Controls provide reasonable assurance that the administrator monitors and s the effectiveness of internal s on an on-going basis. 3.3 Controls provide reasonable assurance that the administrator monitors and has adequate insurance against loss through fire, theft and other disasters as well as professional indemnity and/or fidelity insurance. 3.4 Controls provide reasonable assurance that proper processes and procedures exist in the segregation of duties in the different functions. s and Page 6 of 23

7 3.5 Controls provide reasonable assurance that access to processes and procedures are restricted to staff that have the necessary authorisation to perform this function. Key : has the s and 4. Controls provide physical access to computer equipment, systems, storage media and program documentation is restricted to duly authorised individuals 4.1 Controls provide reasonable assurance that there are physical access s to servers. 4.2 Controls provide reasonable assurance that there is appropriate computers and adequate security monitoring. 4.3 Controls provide reasonable assurance that there are appropriate environmental s. 5. Controls provide logical access to system resources (for example, programs, data, tables, and parameters) is restricted to properly authorised individuals 5.1 Controls provide reasonable assurance that there is an effective access policy. 5.2 Controls provide reasonable assurance that there are s regarding user administration. 5.3 Controls provide reasonable assurance there are s regarding the recertification of user accounts. Page 7 of 23

8 5.4 Controls provide reasonable assurance that there are access restrictions and segregation of duties. 5.5 Controls provide reasonable assurance that the security settings are in accordance with baseline standards. 5.6 Controls provide reasonable assurance that security settings are monitored. 5.7 Controls provide reasonable assurance regarding the changes to baseline standards. Key : has the s and 6. Controls provide system data is regularly backed up and archived data is available for restoration in the event of processing errors and/or unexpected interruptions and ensures business continuity in case of a disaster 6.1 Controls provide reasonable assurance that there are daily backups and that backups can be restored. 6.2 Controls provide reasonable assurance that failed backups are monitored and resolved. 6.3 Controls provide reasonable assurance that there are rotation schedules. 6.4 Controls provide reasonable assurance that there are service level agreements with those to whom the IT function has been delegated and that service levels are monitored and reported. Page 8 of 23

9 6.5 Controls provide reasonable assurance, that in case of disaster recovery the system can be successfully restored. 6.6 Controls provide reasonable assurance that there is a disaster recovery plan and that it has been tested on a regular basis. Key : has the s and 7. Controls provide program and system developments is continually assessed and follow a systems and program development life cycle 7.1 Controls provide reasonable assurance that there is a change management policy. 7.2 Controls provide reasonable assurance that there is adequate approval of change requests. 7.3 Controls provide reasonable assurance regarding the logging, prioritising and tracking of change requests. 7.4 Controls provide reasonable assurance that back-out plans are adequate. 7.5 Controls provide reasonable assurance that there is an adequate test environment. 7.6 Controls provide reasonable assurance that changes are signed off by the authorised officials 7.7 Controls provide reasonable assurance that signed off changes are migrated to the Page 9 of 23

10 production environment. 7.8 Controls provide reasonable assurance that developer access is monitored. Key : has the 8. Controls provide the migration between systems is accurate, complete, valid and timely 8.1 Controls provide reasonable assurance that the data transferred to the new system is accurate and complete. 8.2 Controls provide reasonable assurance that the new system has sufficient capacity 8.3 Controls provide reasonable assurance that the necessary access s to safeguard information on the new system is in place 8.4 Controls provide reasonable assurance that changes form the old system to the new system have been documented and processes and procedures updated. 9. Controls provide proper oversight is in place over delegated functions performed by the sub-service organizations 9.1 Controls provide reasonable assurance that the administrator has s in place to ensure that the administrator has service level agreements in place with third parties. 9.2 Controls are in place to provide reasonable assurance that the administrator s and Page 10 of 23

11 monitors compliance by the third party to the service level agreement. Key : has the s and 10. Controls provide new funds are properly established in the systems in accordance with the plan agreements and individual elections 10.1 Controls provide a documented process and an agreement exists on the steps to be taken to ensure the takeon process is completed timeouly, accurately and completely (this includes roles and responsibilities, dealing with outstanding returns, collection of data, liability of penalties, etc) Controls provide the administration and accounting data is reconciled timeously and any differences are identified and rectified Controls provide reasonable assurance to ensure that take-on data is checked and signed off Controls provide reasonable assurance to ensure that there is adequate segregation of duties in the processes to prevent fraud and error Controls provide reasonable assurance to ensure that access to set-up new funds Page 11 of 23

12 is restricted to authorised persons. Key : has the s and 11. Controls provide changes to non-monetary data/standing data (for example, banking details and ID numbers) are authorised and correctly recorded on a timely basis 11.1 Controls provide changes to standing data/nonmonetary date are authorised Controls provide changes to standing data/nonmonetary is completed in a timeouly manner Controls provide changes to standing data/nonmonetary date is accurate and complete. 12. Controls provide cash receipt transactions (contributions, Section 14 transfers in, proceeds or any other cash receipt transactions) are recorded accurately, timely and in accordance with the rules of the fund and instructions received from plan sponsors and/or participants and the depositing of the cash receipt transactions are deposited in accordance with the Conditions 12.1 Controls provide cash receipts are recorded timely and accurately Controls provide transactions are authorised Controls provide cash receipts are allocated to member records accurately, timely and completely Controls provide Page 12 of 23

13 adequate segregation of duties exists in the cash receipts cycle Controls provide reconciliations of the cash receipt transactions occur timeously between the cash received and the supporting documentation Controls provide compliance with relevant legislation is monitored in respect of cash receipt transactions. Key : has the s and 13. Controls provide guarantees and/or direct housing loans are recorded accurately, timely and in accordance with instructions received from loan providers, plan sponsors and/or participants 13.1 Controls provide loans/guarantees agree to supporting documentation Controls provide loans/guarantees are allocated to members records in a timely, accurate and complete manner Controls provide reconciliations are timeously performed between administration and accounting records and reconciling items are resolved timeously Controls provide Page 13 of 23

14 payments for direct loans are allocated accurately, timely and completely Controls provide authorised interest is allocated accurately, timely and completely to the member. Key : has the 14. Controls provide investment and disinvestment transactions are processed accurately, completely and timely 14.1 Controls provide investment/disinvestment instructions are actioned accurately, timely and completely, in accordance with trustee instructions Controls provide investment portfolios are loaded accurately, timely and completely Controls provide reconciliations are performed between administration and accounting records and reconciling items are resolved. s and 15. Controls provide distributions (death, retirement, withdrawal, divorce claims, unclaimed s, Section 14 transfers out, pensions, expenses) of plan assets (member credit) are recorded accurately, timely and in accordance with instructions received from plan sponsors and/or participants 15.1 Controls provide distributions are calculated accurately and that payment distributions are made in terms Page 14 of 23

15 of the rules of the fund (where applicable), have been authorised and have been paid to the correct member/vendor Controls provide reconciliations are timeously performed between distributions paid on the administration system and those recorded on the accounting records and reconciling items are resolved timeously Controls provide distributions are made to authorised persons Controls provide adequate segregation of duties exists in the payment of distributions. Key : has the s and 16. Controls provide transactions reflecting a transfer of participant funds among investment options (switches) are recorded accurately, timely and in accordance with instructions received from plan sponsors and/or participants 16.1 Controls provide switch instructions are executed timely, accurately and completely in accordance with approved and authorised instructions Controls provide the prices utilised in the switch instructions are accurate. Page 15 of 23

16 16.3 Controls provide there is adequate segregation of duties in the switch of investment process. Key : has the s and 17. Controls provide investment gains/losses that are allocated to the member s record are accurate, timely and complete 17.1 Controls provide reconciliations between the administration system and the accounting system for investments are dealt with timeously, are accurate and complete Controls provide reasonable assurance investments reconciled to third party confirmations are accurate and complete Controls provide gains or losses on investments are accurately calculated and allocated to member records. 18. Controls provide market prices used for allocation to the member s record accurately, timely and complete 18.1 Controls provide market prices are from an authorised source Controls provide the capturing of market prices is ed. 19. Controls provide data transferred from the administration systems and/or accounting systems into financial reporting systems is complete accurate Page 16 of 23

17 and valid Controls provide reasonable assurance that data is timeously, accurately and completely transferred into the financial reporting software. Key : has 20. Controls provide the termination of funds is complete, accurate and timely Controls provide reasonable assurance that data transferred to the receiving fund is accurate, timely and complete. 21. Controls provide bank accounts exist, are complete and are accurate 21.1 Controls provide the bank accounts are correctly held in the name of the fund or insurer Controls provide the bank accounts are maintained and reconciled timeously and accurately Controls provide receipts are timeously identified and allocated to member records Controls provide all payments are timeously and accurately recorded in the records Controls provide all payments and receipts in the the s and Page 17 of 23

18 bank account are valid Controls provide all unidentified receipts or payments have been investigated and reported to the board timeously. Key : has the 22. Controls provide management s financial information is accurate and complete 22.1 Controls provide management s financial information accurately and completely reflects the transactions of the administrator Controls provide the management reports have been authorised by persons of authority 22.3 Controls provide management information required to calculate the liquidity and capital adequacy requirements is accurate, complete and valid Controls provide compliance with condition 13 is monitored, managed and reported. s and Page 18 of 23

19 Schedule B Compliance requirements for administrators in accordance with the Conditions 1. Condition 2 of the Conditions, requiring any investment administrator offering investment administration and or investment management to comply with the relevant legislation in terms of the FAIS Act; 2. Condition 3.4 of the Conditions, requiring the submit quarterly returns as prescribed by the Registrar; 3. Condition 4.1 of the Conditions, requiring the notify the Registrar on any change in the name, registered address, postal address or contact details of the administrator within 30 days from the effective date of such change; 4. Condition 4.1(d) of the Conditions, requiring proof that there has not been a change in ownership and/or management of the administrator as approved in terms of section 13B, when there have been changes as set out in item 3 above; 5. Condition of the Conditions, requiring proof that all funds being administered by the administrator were duly informed about the relevant changes set out in item 3 above; 6. Condition 5.1 of the Conditions, requiring another whom administrative functions will be outsourced to be duly approved in terms of section 13B and the Registrar s approval has been obtained prior to the commencement of the outsourcing arrangement; 7. Condition 5.2 of the Conditions, requiring an outsourcing and service level agreement to be in place between the external service provider, mentioned in item 6 above, and the administrator; 8. Condition 5.3 of the Conditions, requiring the inform funds affected by the outsourcing arrangement and to have obtained their consent to the outsourcing arrangement prior to the utilisation of such service as well as informing such funds of any additional costs that might be applicable in future, including future changes to the outsourcing agreement; 9. Condition 5.4 of the Conditions, requiring that the outsourced agreement be contained in the administration agreement between the administrator and funds affected by such outsourcing agreement; 10. Condition 5.5 of the Conditions, requiring that the administration agreement mentioned in item 9 above with the funds, must state that the appointed administrator shall remain responsible for any of the duties and record keeping outsourced to any other party and should be addressed in the disaster recovery and business continuity plans of the administrator; 11. Condition 6.1 of the Conditions, requiring that no administrator or person may acquire the business of an approved administrator or merge the business of more than one administrator unless, due notification has been given to the Registrar, the Registrar has been furnished with a copy of the relevant agreement in respect of such merger or acquisition and the Registrar has approved such acquisition or merger; 12. Condition 6.2 of the Conditions, requiring that any person except for an administrator approved in terms of section 13B who wishes to acquire the business of another administrator, then such person must apply to the Registrar for approval in terms of section 13B; 13. Condition 6.3 of the Conditions, requiring that an approved administrator who wishes to merge with the business of another administrator, has submitted to the Registrar prior to the merger or acquisition, whether there will be any changes of the ownership of the administrator acquiring the business, any changes to the responsible person as approved in terms of section 13B and any changes to the organisational and management structure of the administrator. Whether sufficient processes and procedures are in place to ensure that transfer of business will not detrimentally affect the funds under its administration, that for any funds whose administration will be transferred to the administrator acquiring the business of another, have been informed and have agreed to the transfer of its administration to the new administrator, if not, such funds must be given the opportunity to transfer its administration to another administrator prior to the merger. Funds under the administration of the administrator, unless agreed to in writing, shall not incur additional costs as a result of such merger. Submission of an undertaking by the administrator acquiring the business that it takes full responsibility for funds in the acquisition process; Conditions - Annexure B.July 2012 Page 19 of 23

20 14. Condition 6.3 of the Conditions requiring that a merger or acquisition shall only take effect once approval has been obtained from the Registrar; 15. Condition 7.3 of the Conditions, requiring an administrator whose services have been suspended in terms of paragraph 7.1 of the Conditions, shall not enter into any agreements to provide any new or additional services to any fund until the Registrar is satisfied that the further suspension or withdrawal of an approval would not be necessary; 16. Condition 7.2 of the Conditions, requiring an administrator whose services have been suspended in terms of paragraph 7.1 of the Board Notice to inform all clients of the withdrawal of approval and the Registrar may, where in public interest, take the steps he/she deems necessary to inform all affected funds. The Registrar may also notify any other regulatory bodies; 17. Condition 8 of the Conditions, requiring that prior to the commencement of administrative functions with regard to a particular fund, an administrator shall enter into a written administration and service level agreement; 18. Condition 8 of the Conditions, requiring that the service level agreement must be signed before the commencement of such services by both parties; 19. Condition 8.1 of the Conditions, requiring that the administration agreement to act as a administrator provides for certain minimum requirements, as set out in Condition 8.1; 20. Condition 8.2 of the Conditions, requiring that the service level agreement mentioned in item 17 above, provides for certain minimum requirements, as set out in Condition 8.2 of the Conditions; 21. Condition 9.1 of the Conditions, requiring that where an administration agreement is terminated between a pension fund and an administrator, such administrator and fund shall inform the Registrar in writing, within 30 days of receipt or giving of such notice of termination, including the effective date of the termination; 22. Condition 9.2 of the Conditions, requiring the transferring administrator within a reasonable time to provide a fund / newly appointed administrator with all the information it has in its possession or is under its and provide such information in an electronic format capable of manipulation by the fund or in any other format, if the information is not available in electronic format. This information include, but not limited to accounting records, trial balance and member records as well as any non-financial data (such as documents of title relating to assets, assets register, minute books, member details, investment choices, salaries, pensioner payroll details, banking details, etc.), as agreed between the administrators within a maximum period of 15 days from the effective date of termination of administration. The transferring administrator will within a further 15 days be responsible to submit to the fund a reconciliation of the bank accounts, s and contributions as at date of transfer; 23. Condition 9.3 of the Conditions, requiring that within 90 days after the effective termination date all other relevant information shall be transferred to the fund or new administrator in the agreed format, including but not limited to, copies of annual financial statements, valuation reports where applicable, claim forms, contribution schedules, housing loans granted in terms of section 19(5), signed agreements, any applicable policy documents; and any other relevant documentation; 24. Condition 9.4 of the Conditions, requiring the transferring complete the report as set out in Annexure G and to provide such report to the fund or new administrator within 15 days from the date of termination of administration; 25. Condition 10.1 of the Conditions, requiring an nominate a person responsible for the administrator in terms of section 13B; 26. Condition 10.2 of the Conditions, requiring that where the appointment of the responsible person has been terminated the administrator must, within 30 days from the date of termination of the responsible person, notify the Registrar in writing of such termination including the name and contact details of the newly appointed responsible person; 27. Condition 10.3 of the Conditions, requiring that the notification of the change of a responsible person mentioned in item 26 shall be accompanied by a letter of acceptance of the appointment by the relevant person; Conditions - Annexure B.July 2012 Page 20 of 23

21 28. Condition 10.5 of the Conditions, requiring that where the Registrar objects to the appointment of a responsible person in terms of paragraph 10.4 of the Board notice, the administrator must terminate the appointment within 30 days of the Registrar informing the administrator of the finalisation of the processes and procedures provided for in the Promotion of Administrative Justice Act, 2000 (Act No. 3 of 2000); 29. Condition 11 of the Conditions, requiring that where the appointment of an auditor has been terminated the administrator must, within 30 days, notify the Registrar in writing of such termination including the details of the newly appointed auditor and notification of an appointment of an auditor to the Registrar shall be accompanied by a letter of acceptance of the appointment by the auditor; 30. Condition 12 of the Conditions, requiring that an administrator shall take out and maintain professional indemnity insurance and fidelity guarantee insurance relative to the complexity and size of its administration business; 31. Condition 13.1 of the Conditions, requires the comply with the minimum capital adequacy requirement; 32. Condition of the Conditions, requiring an administrator at any time to maintain assets in liquid form equal to or greater than 13/52 of annual expenditure. 33. Condition 14 of the Conditions, requiring an deposit any pension fund moneys, not later than the business day following the date of receipt, into a bank account opened in the name of the pension fund concerned or, in the case of underwritten funds, in the bank account of the relevant insurer; 34. Condition 15.1 of the Conditions, requiring a dedicated interest bearing banking account to be opened by the administrator on behalf of any fund, to accept moneys and to pay s on behalf of the funds with a registered bank; 35. Condition 15.2 of the Conditions, requiring that such trust account must be held in such a way that such assets shall not form part of the administrator s assets; 36. Condition 15.3 of the Conditions, requiring contributions and other amounts received and identified belonging to a specific fund to be allocated to the relevant fund, or sub fund within 48 hours; 37. Condition 15.4 of the Conditions, requiring that where contributions have been received and the administrator is unable to identify and allocate such contributions to a specific fund, such amounts must be investigated within 48 hours. Any amounts not allocated within 30 days from receipt must be reported to the responsible person in terms of section 13B. The responsible person must ensure that all action has been taken to resolve any unallocated amounts. Any such unallocated amounts must at yearend be reported on in the annual reassessment of processes and procedures (Annexure B) to the Registrar; 38. Condition 15.5 of the Conditions, requiring that on identification and allocation of any previously unallocated amounts, any interest earned, from date of receipt until date of transfer or payment to the fund account, on such unallocated amounts shall be paid to such fund within 7 business days after the end of the month following such allocation; 39. Condition 15.6 of the Conditions, requiring that in the case where a payable to a beneficiary is made through the administrator s trust account, such must be transferred or paid within 24 hours from when the deposit is made in the trust account; 40. Condition 15.7 of the Conditions, requiring that where a payment to a beneficiary is rejected by a bank or a payment is returned unpaid, such amount must be transferred or paid back to the relevant fund within 24 hours ; 41. Condition 15.8 of the Conditions, requiring that reconciliations must be performed on the facilitation account on a daily basis and should be ed by the responsible person on a monthly basis; 42. Condition 15.9 of the Conditions, requiring that reconciling items need to be clearly identified and resolved within 7 working days after the reconciliation has been performed; 43. Condition 16 of the Conditions, requiring that whenever a document of title relating to assets held by a fund or to be held in custody on behalf of a fund by virtue of the fund s registered office being the address of an administrator, comes into possession of the administrator, the latter shall make adequate arrangements to ensure the continued safety of the documents of title held in safe custody and shall mark such document Conditions - Annexure B.July 2012 Page 21 of 23

22 forthwith in a manner which will render it possible at all time to establish readily that the fund is owner of such assets, and the administrator shall maintain a register to identify ownership of assets; 44. Condition 18 of the Conditions, requiring that where there is a change in owners, directors, members or shareholders having the effect of a change of de facto of the administrator in question for approval in terms of section 13B, the administrator must within 90 days after the effective date of such change apply to the Registrar for approval in terms of section 13B; 45. Condition 20.6 of the Conditions, requiring that where an administrator intends to replace the system utilised for administration purposes, the Registrar must be informed prior to such change in systems. The lease or purchase agreement in respect of systems utilised by the administrator must state that all records and data in respect of the fund which were maintained on that system will be secured at the termination of such agreement and shall remain the property of the fund/s; 46. Condition 20.7 of the Conditions, requiring that where an administrator intends to migrate from one system to another, all funds affected by such migration must be informed of such migration and the auditor must perform an agreed upon procedures engagement on the migration of systems which must be submitted to the Registrar within 6 months after the commencement of such migration; 47. Condition 21.1 of the Conditions, requiring that when an administrator intends ceasing to conduct business or its business is dissolved or liquidated, that the administrator must inform all the funds under its administration of its intention to cease administration; 48. Condition 21.3 of the Conditions, requiring that the administrator must provide a report, within 120 days after the date of ceasing to perform administration business, to the Registrar confirming that the requirements set out in conditions 9 have been met and where an administrator failed to comply or was not able to comply, provide full particulars about the documents or records which were not provided, provide the reasons therefore as well as the proposed plan with relevant dates on which compliance will take place. Conditions - Annexure B.July 2012 Page 22 of 23

23 ISAE 3000 BENEFIT ADMINISTRATORS TWELFTH DRAFT Schedule C Total number of funds, total number of members, total number of pensioners, total number of unclaimed s, and total assets in funds 4 Nature of funds Total number of funds Total number of members Total number of pensioners Total number of unclaimed s Total assets R Pension funds Provident funds Unclaimed preservation pension funds Unclaimed preservation provident funds Pension preservation funds Provident preservation funds Retirement annuity funds TOTAL 4 A supporting schedule listing the above details per fund must be attached to this report. Conditions - Annexure B.July 2012 Page 23 of 23