Old Mutual to be probed over refusal to allow client to transfer RA
The Pension Funds Adjudicator, Vuyani Ngalwana, is to conduct a full investigation into the refusal by Old Mutual to allow retirement annuity (RA) clients unhappy with investment returns to move to another retirement annuity fund, says a Moneyweb report.
He has invited the SA Revenue Services (SARS) and the Competition Commission to make submissions in the case and has joined them as respondents with Old Mutual. This emerged in an interim ruling issued by Ngalwana yesterday following a complaint by Hilton C Browne after Old Mutual would not allow him to transfer his RA savings from its smooth bonus portfolio to the Allan Gray RA fund. Ngalwana pointed out that the Income Tax Act requires an RA fund to have a rule, which authorises the transfer of a members interest in the fund to another approved retirement annuity fund. The report says the case has implications for all contributors to RA funds and, says Ngalwana, affects a wider range of people and institutions than Browne and Old Mutual. Ngalwana is bringing SARS into the matter to answer a question pertinent to anyone who is frustrated by being stuck in an underperforming RA investment. Deputy Adjudicator Naleen Jeram said his office has received many complaints from RA members requesting the right to transfer to other RA funds. Full Moneyweb report