Engagement with our regulators
During the financial year ending June 2021, we continued to collaborate with our regulators, ensuring our operations complied with existing legal and regulatory requirements. This was through ongoing reviews of and monitoring and evaluation of controls, independent assurance conducted by the Audit Function, timely reporting, and continuous regulator engagements and communication.
We constantly communicate and engage with our regulators to improve our corporate value, compliance with laws and regulations, policy recommendations and participation in industry collaborative initiatives.
activities that enable and create value for regulators
outputs
beneficial outcomes for all
We have actively participated in policy forums, responded to engagement on regulatory matters and engaged with industry consultative bodies. This strengthens our ability to manage the safety of the pension system and our commitment to continuous improvement in making our members’ lives better.
As a result, we continued to proactively conduct regulatory impact assessments on the provisions of the NSSF Amendment Bill relating to midterm access. We also engaged stakeholders and regulators on providing emergency procedures in response to the Covid-19 challenges for our members including enabling our members who were critically ill and admitted to hospital due to Covid-19, to access their benefits in order to pay for medical treatment.
While comprehensive stakeholder consultations were more difficult during the pandemic, the Fund utilised a range of targeted engagement methods to communicate the rationale behind various responses to Covid-19.
Ministry of Planning and Economic Development addressing the Fund at the Annual Members meeting
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Our approach to financial crime and market abuse
Financial crime and money laundering poses a reputational and legal risk and is an area of focus for our regulators and law enforcement agencies. As a Fund, we have continued to ensure regulatory compliance to the provisions of the Anti-Money Laundering Act of 2013. We have also actively and proactively engaged with the Financial Intelligence Authority (FIA) to gain greater understanding of the typologies and trends emerging from Covid-19, and factor these into our transaction monitoring rules and calibrations as a way of improving our compliance management.
Furthermore, effective communication with our members has been necessary due to the evolving risks posed by Covid-19. For example, we continued to educate our Voluntary Contribution Members remitting large cash amounts as part of engagements relating to Know Your Customers (KYC). -
Our approach to financial crime and market abuse
Financial crime and money laundering poses a reputational and legal risk and is an area of focus for our regulators and law enforcement agencies. As a Fund, we have continued to ensure regulatory compliance to the provisions of the Anti-Money Laundering Act of 2013. We have also actively and proactively engaged with the Financial Intelligence Authority (FIA) to gain greater understanding of the typologies and trends emerging from Covid-19, and factor these into our transaction monitoring rules and calibrations as a way of improving our compliance management.
Furthermore, effective communication with our members has been necessary due to the evolving risks posed by Covid-19. For example, we continued to educate our Voluntary Contribution Members remitting large cash amounts as part of engagements relating to Know Your Customers (KYC). -
Our Responsible Approach to Tax
We continued to act lawfully and with prudence in our responsibility to complying with tax statutory obligations and disclosure requirements despite the Covid-19 impact on our business operations. The Fund maintained open and constructive relationships with the Uganda Revenue Authority recognising that tax sustains, safeguards the long-term growth value and enhances the reputation of society in which the Fund operates.
Despite a fall in business activity due to restrictive lockdown, our tax contributions for the reporting year, were as follows:
> UGX 165Bn
Taxes collected on behalf of government
> UGX 25Bn
Taxes paid to government
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Our legislative engagements
The Fund’s mandate over the years, has been to extend social security to as many members as it possibly can. As a result of the restrictions under the NSSF Act, the legislators have continued to play a key role in shaping the pension sector accelerated by the impact of Covid-19 on businesses and Fund members. As a result, we engaged the legislators on establishing constructive understanding of the Fund’s business and ensuring that legislative changes deliver a sustainable outcome that is positive to our members and business alike. Our proactive engagement with legislators also provided us with insights that helped inform our material issues, shape our business strategy and operations, and minimise reputational risk.
During the reporting year, the NSSF Act amendment bill was passed by Parliament, and we continued to engage with the legislators on key themes relating to midterm access and allowing members to access up to 20% of their accrued benefits.
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Control and supervision
In performing our mandate to extend social security to as many members, a number of activities require regulatory authorisation, guidance, licensing and/or registration. During the reporting period, the Fund continued to commit to complying with and conducting business in accordance with relevant regulatory requirements despite the Covid-19 restrictions We also continued to align with emerging regulators’ key business plans, monitor the status of our regulatory relationships as part of our efforts in committing to continuous improvements and making our members’ lives better. Several of our activities were and are therefore authorised, controlled, supervised, and regulated by the following government institutions:
The Fund is either supervised by and/or reports to the following government bodies:
NSSF Managing Director, Richard Byarugaba with the team from PPDA who are responsible for regulating the Fund's Procurement processes.
STAKEHOLDERS, STRATEGIC OBJECTIVES, CAPITALS & RISKS:
