New MIBCO Regulation: You Need to Appoint a Liable Person.

MIBCO recently introduced a regulation that requires employers to appoint a Liable Person. Many employers might not be aware of this regulation yet.

Failing to comply will lead to serious penalties and a non-compliance status. In this article, you'll learn about the MIBCO Liable Person and the process involved.

What is the New Regulation?

Motor industry employers must appoint a "Liable Person" to manage employee information. The "Liable Person" will manage employee information and compliance with retirement fund regulations.

This person will make use of the new MIBCO Employer Portal to get the job done. The Employer Portal offers a user guide to assist employers to navigate the process.

The regulation is mandatory, and employers must comply by the deadline of August 31, 2024. This rule is part of FSCA Conduct Standard 1 of 2022.

Why This Change Matters?

Pension fund administrators need accurate employee data. This new regulation makes is easy and simple to manage and update employee data.

The Liable Person is accountable for these tasks. They help reduce errors and improve fund management using the MIBCO Employer Portal.

The Consequences of Non-Compliance:

Failing to appoint a "Liable Person" will result in serious penalties. Employers will face fines or legal sanctions. MIBCO will issue out a non-compliance notice. It's important to take this regulation serious to avoid expensive mistakes.

5-Steps to MIBCO Compliance:

• Visit the MIBCO Website: Download the "Liable Person Registration Form."

• Identify a Suitable Candidate: Choose someone who can manage employee data. Or hire a MIBCO Compliance Specialist.

• Complete the Registration Form: Submit it via email to LiablePersonReg@mibco.org.za.

• Get Login Details: The Liable Person will receive access to the MIBCO Employer Portal. This is where they can manage data and stay updated.

• Clarity: Make sure the Liable Person understands their responsibilities. Equip them with the necessary resources to keep employee information accurate.

What is the Big Problem?

Employers face challenges managing their employee data. This challenge leads to discrepancies. Appointing a Liable Person aims to bring order and accuracy, avoiding these risks. Not complying with pension fund administrators leads to expensive mistakes and legal headaches.

What is the Big Benefit?

If you comply, you will make sure employee information is always accurate and up to date. This will lead to smooth operations and fewer regulatory headaches.

You're not only avoid penalties and legal headaches. You also protect your employees financial futures. You make sure their retirement funds are on-point.

Some Businesses May Hesitate to Appoint a Liable Person,

Thinking it’s unnecessary or too complicated to navigate the portal. Others may feel their current process works fine and see no immediate need for change.

Here are a few reasons why it's worth doing this:

• Simplify compliance and assign accountability to one person to handle employee data.

• Reduce long-term risks and the chances of making expensive mistakes.

• Safety and a peace of mind for both employers and employees.

Appointing a Liable Person is Non-negotiable

This regulation is mandatory, so appointing a Liable Person is not an option—it’s essential. Protect your business and your employees financial security. Make sure your employee data is in line with pension fund laws.

If you own a company or work in the motor industry and struggle with MIBCO regulations. Check out our Expert MIBCO Compliance Solutions now.

P.S. Hungry for more? Head over to our blog for more insights on MIBCO Compliance. And don’t forget to share this with a colleague who will find value from this information!