Regulatory Alerts2018-03-31
Information Circular 3 of 2008: Foreign Exposure Limit for Pension Funds
The South African Financial Services Board announced that the statutory foreign investment limit for pension funds will increase from 15 percent to 20 percent alongside broader Regulation 28 amendments expected within three months. Pending formal legislative changes, the Registrar invites pension funds to apply for a temporary exemption under Regulation 28(5) to immediately access the higher 20 percent foreign exposure threshold. This directive applies to all approved administrators, privately administered funds, and pension insurers, requiring them to submit exemption requests to the Registrar to comply with the interim allowance.
FINANCIAL SERVICES BOARD Rlgel Park 446 Rigel Avenue South Erasrnusrand Pretorla 0181 South Africa PO BOX 35655 Menlo Park Pretoria 0102 South Africa Tel +27 12 428 8000 Fax +27 12 347 0221 E-mail info@fsb.co.za Toll free 0800 110443 Internet http.l/www.fsb.co.za ENQUIRIES: Alta Marais OUR REF: 1211211 DATE: 17 April 2008 D. DIALLING NO.: 012 428 8065 FAX: 0123470874 E-MAIL: altam@fsb.co.za (To all approved administrators, privately administered funds and insurers who underwrite pension funds) INFORMATION CIRCULAR 3 OF 2008 FOREIGN EXPOSURE LIMIT FOR PENSION FUNDS -. .- - National Treasury have advised my Office that the amendment to Regulation 28 to give effect to the announcement by the Minister of Finance that the foreign exposure limit for pension funds will increase from 15% to 20% will be effected at the same time as the proposed broader amendments to Regulation 28 which are currently under consideration. It is anticipated that these amendments are expected to be finalized within the next three months. In the light of the above, funds that wish to avail themselves of the increased exposure, are invited to apply to the Registrar to be exempted in terms of Regulation 28(5) from the 15% limit, subject to a maximum limit of 20%. Yours faithfully JA BOYD For: Registrar of Pension Funds Board Members Dr CDR Rusfornjee (Chairperson) AM Sithole (Deputy Chairperson) BM Hawksworth Ms JV Mogadirne Ms AMM Mokgabudi Ms LM Mojela Prof PJ Sutherland Ms HS Wilton Executive Officer RJG Barrow