The Reserve Bank of Malawi (RBM) has licensed Pro Veritas Consulting Group Limited as a first pension adviser in Malawi to provide professional and technical guidance to pension and provident funds as well as members on governance, compliance, investments, risk and retirement planning
The firm’s executive director Bidronce Chiphaso, in an interview on Friday, described the licence as an important milestone for both the firm and Malawi’s pension industry.
He said: “This landmark licence is not only a milestone for Pro Veritas, but also a significant step in the evolution of Malawi’s pension industry.
“It reinforces our commitment to providing independent, professional and technically sound advice, turning insights into sustainable solutions and ultimately delivering on our promise of transforming societies.”
In an interview, RBM director of pension compliance and support Agnes Sentala said the new category was created to address the gap in the pension market.
She said: “Under the original Pension Act 2010, the only recognised intermediary was the pension broker whose role by its nature was to act on behalf of employers and employees.
“The pension adviser was subsequently introduced in the Pension Act 2023 to address a gap in the market of providing independent advisory services specifically to pension funds and pension fund members.”
Sentala said the new advisory function will provide professional support in areas where trustees and members may otherwise lack adequate information.
She said: “Certain pension matters are highly technical and require specialised expertise and guidance.
“Without adequate information and professional support, trustees and pension members may be susceptible to making poorly informed or untimely decisions that could adversely affect their retirement outcomes.”
Vanguard Pension Services general manager Isaac Kalebe said the new role will complement existing pension service providers by giving trustees an independent perspective on their overall arrangements.
“A pension adviser operates at an institutional supervisory level. They provide independent oversight of all service providers, assess total cost structures, evaluate asset-liability alignment and help trustees set high-level policy without getting bogged down in daily execution,” he said.
Life Insurance and Pension Association of Malawi vice-chairperson Ekari Chauluka said the licence will expand the range of specialist services available to pension stakeholders.
“The licensing of the first pension adviser is a key milestone in the evolution of the pension market in Malawi and signals maturity of the practice to incorporate specialist service providers,” he said.
