The Reserve Bank of Malawi (RBM) has taken a significant step in developing the country's pension industry by licensing Pro Veritas Consulting Group Limited as the first pension adviser. This new role is designed to provide professional and technical guidance to pension and provident funds, as well as their members, on key areas such as governance, compliance, investments, risk, and retirement planning. The licence was confirmed on an undisclosed date.
Pro Veritas Consulting Group Limited's executive director, Bidronce Chiphaso, expressed his delight at achieving this milestone, describing it as a landmark licence for both the firm and Malawi's pension industry. He emphasised that this licence reinforces the company's commitment to providing independent, professional, and technically sound advice to its clients. Chiphaso also highlighted the firm's goal of transforming societies through its work.
According to RBM director of pension compliance and support, Agnes Sentala, the new category of pension adviser was created to address a gap in the pension market. Under the original Pension Act 2010, the only recognised intermediary was the pension broker, whose role was limited to acting on behalf of employers and employees. The Pension Act 2023 introduced the pension adviser to provide independent advisory services specifically to pension funds and their members.
The introduction of the pension adviser role is expected to provide professional support to trustees and members in areas where they may lack adequate information. Sentala noted that certain pension matters are highly technical and require specialised expertise and guidance. Without this support, trustees and pension members may make poorly informed or untimely decisions that could adversely affect their retirement outcomes.
The new role of pension adviser is expected to complement existing pension service providers by giving trustees an independent perspective on their overall arrangements. Vanguard Pension Services general manager, Isaac Kalebe, explained that a pension adviser operates at an institutional supervisory level, providing independent oversight of all service providers, assessing total cost structures, evaluating asset-liability alignment, and helping trustees set high-level policy.
Life Insurance and Pension Association of Malawi vice-chairperson, Ekari Chauluka, welcomed the licence, saying it will expand the range of specialist services available to pension stakeholders. Chauluka described the licensing of the first pension adviser as a key milestone in the evolution of the pension market in Malawi, signalling the maturity of the practice to incorporate specialist service providers.
The licensing of Pro Veritas Consulting Group Limited as a pension adviser marks a significant development in Malawi's pension industry. The firm is expected to play a crucial role in providing professional and technical guidance to pension and provident funds, as well as their members. This development is expected to enhance the overall governance, compliance, and investment management of pension funds in Malawi.
Key points
- The Reserve Bank of Malawi has licensed Pro Veritas Consulting Group Limited as the first pension adviser in the country.
- The new role of pension adviser aims to provide independent advisory services to pension funds and their members.
- The licence is expected to expand the range of specialist services available to pension stakeholders in Malawi.
