Pro Veritas gets Malawi’s first Pension Advisor license

Pro Veritas Consulting Group Limited has become Malawi’s first licensed Pension Advisor after being issued a license by the Registrar of Financial Institutions.

The license allows the company to provide professional and technical advice to pension funds, provident funds and their members on governance, compliance, investment oversight, risk management and retirement planning.

Pro Veritas Executive Director Bidronce Chiphaso described the license as an important milestone for both the firm and Malawi’s pension industry.

“This landmark license 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’,” said Chiphaso.

Reserve Bank of Malawi (RBM) Director of Pension Compliance and Support Agness Sentala said the new category 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, by its nature, was to act on behalf of employers and employees.

"The pension advisor 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,” said Sentala.

She said the new advisory function would provide professional support in areas where trustees and members may otherwise lack adequate information.

“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,” she said.

Vanguard Pension Services General Manager Isaac Kalebe said the new role would complement existing pension service providers by giving trustees an independent perspective on their overall arrangements.

“In contrast, a Pension Advisor 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,” said Kalebe.

He said pension funds were also facing economic and investment pressures that could affect members’ returns.

“Pension funds face severe macroeconomic headwinds, high inflation, currency volatility, and presently heavy concentration risk on a sluggish Malawi Stock Exchange, that directly threaten real member returns,” he said.

Life Insurance and Pension Association of Malawi (LIPAM) Vice Chairperson and Zamara Pension Administration Limited Managing Director Ekari Chauluka said the license would expand the range of specialist services available to pension stakeholders.

“The licensing of the first pension advisor is a key milestone in the evolution of the pension market in Malawi and signals maturity of the practice to incorporate specialist service providers beyond the pension administrators who have traditionally worn two hats as both administrators and advisors,” said Chauluka.

He said pension advisers would widen the pool of locally available independent expertise for pension trustees, employers and members who previously sought such services from foreign-based specialists.

“This will help save some forex in non-actuarial advisory areas,” he said.