In response to the changing dynamics in the sector operational environment, the Uganda Retirement Benefits Regulatory Authority (URBRA) in February 2023 issued amended regulations to address key issues like, financial disclosure and valuation of assets among others. During a workshop to disseminate the amended regulations, URBRA CEO, Mr. Martin Anthony Nsubuga observed that the retirement benefits sector had developed significantly over the past ten years, rendering some of the previous regulations inadequate or even obsolete. “The foundation of the supervision of this sector is premised on how the service providers and trustees do their work. So, we really respond to the dynamics in the market and listen to the issues that you put to us and improve accordingly,” Mr. Nsubuga said. He further noted that the regulations were a result of an extensive consultative process, which involved key sector players, which sets a strong base for easy implementation. A total of eight regulations were amended, introducing new areas of compliance for trustees and service providers, including:

• Distinguish between voluntary and mandatory contributions in the scheme reports.
• Submit half-year financial reporting for both June schemes and December schemes (unaudited).
• Introduction of the definition of financial analyst.
• Fund managers who develop the Investment Policy should not implement it.
• Investments should be made in the name of the scheme.
• Guidance on investments in collective investments schemes.
• Disclosure requirements by Fund Managers to Trustees prior to self-investment.
• Definition of self-investment.
• Prescribed methodologies for investment reporting.
• Strengthening corporate governance for umbrella scheme. Regulation 4(4).
• Prescribed the minimum number of trustees of anumbrella retirement benefits scheme as five (5).
• Composition of the board in umbrella schemes.
• Display of license issued to the scheme and service providers.
• Duty of trustees of schemes and services providers to inform the public that they are licensed by URBRA.
• Tenure of Trustees should not exceed 5 years renewable to a maximum of two terms.
• Duty to inform the Authority of any changes in the Fund Manager.
• Schemes are now required to have additional policies in place such as interest declaration policy, policy on benefits payment and any others prescribed by the Authority.
• Conducting of an annual general meeting is now required to be done within 6 months from the end of the year of the scheme.
• Trustees and service providers are required to avoid dissemination of misleading information to the public in advertisements.
• Remedial measures for non-compliance such as caution, cash penalties, imprisonment.

Presenting the amended regulations, the URBRA Chief Manager Legal Services, Ms. Rita Nansasi, cautioned stakeholders against non-compliance saying that remedial measures, administrative sanctions had been introduced, cutting across all the regulations. Seeking clarification about the amendments, stakeholders raised questions about a wide range of issues such as: whether URBRA had considered a tribunal or an arbitrator in case of non-compliance; the regulator’s effort to check service providers to ensure they are professional and give value for money; how long the schemes should hold on to a deferred member’s accumulated benefits. They also sought to understand how URBRA had arrived at the 30% limit in the regulation concerning self-investment an whether collective investment schemes were considered an asset class. Ms. Nansasi reassured all stakeholders that the amendments had been carefully considered and taken through a thorough consultative process, with the purpose improving the efficiency of trustees and service provers and of strengthening the oversight role of the Regulator, and ensuring the protection of savers’ retirement benefits.

URBRA AMENDED REGULATIONS 2023

1) URBRA (Financial Reporting and Disclosure) (Amendment) Regulations 2023, SI.No. 9 of 2023

2) URBRA (Investment of Schemes Funds) (Amendment) Regulations 2023, SI. No.10 of 2023;

3) URBRA (Licensing of Custodians) (Amendment) Regulations 2023, SI. No. 11of 2023

4) URBRA (Licensing of Fund Managers) (Amendment) Regulations 2023, SI.No12 of 2023;

5) URBRA (Licensing of Retirement Benefits Schemes) (Amendment) Regulations 2023, SI.No. 13 of 2023;

6) URBRA (Licensing of Trustees) (Amendment) Regulations 2023, SI.No.14 of 2023;

7) URBRA (Management and Operation of Retirement Benefits Schemes) (Amendment) Regulations 2023, SI.No. 15 of 2023

8) URBRA (Licensing of Administrators) (Amendment) Regulations 2023, SI.No.16 of 2023;