Regulatory Alerts2018-03-31
PF Circular 88: Participation in South African Government International Bond Issue
The Financial Services Board issued Circular 88 to authorize South African pension funds, administrators, and insurers to participate in the government's upcoming international bond offering. The circular confirms that bonds acquired through this issue qualify under Regulation 28 of the Pension Funds Act and will be classified within the 2.5% investment category. Participating funds must secure prior approval from the South African Reserve Bank's Exchange Control Department to facilitate the necessary foreign currency transfers.
FINANCIAL SERVICES BOARD 446 Rigel Avenue Sourh Erasmusiand 0181 P 0 Box 35655 Menlo Park Prelorja RSA 0102 Tei (012)347-0660 lnt+27-12 3470660 Fax (012)347 0221 lnt r27-12 3470221
=nqu#re$ MRS A STUART 1x234) 3ur ref 1211 211 Date January 1996 CIRCULAR PF NO. 88 (To all funds not exempted in terms of section 2(3)(a) of the Pension Funds Act, No 24 of 1956 [Self-administered funds], fund administrators and insurers whm administer funds) PARTICIPATION BY SOUTH AFRICAN INSTITUTIONS IN THE SOUTH AFRICAN GOVERNMENT'S NEXT INTERNATIONAL BOND ISSUE You are referred to the recent press release by the Minister of Finance regarding the offer of 10% of the Government's next international bond issue to institutions qualifying for asset swaps. This specific issue will qualify as an asset mentioned in paragraph 9(b) of the Annexure to Regulalion 28 of the regulations made under the Pens~on Funds Act, 7956. Assets that may be acquired from the sale of thts spectfic issue, will be classified unde: the 2.5% category as contemplated in paragraph 9 of the said Regulation 28. Each fund wishing to participate in the issue, will be required to obtain approval from the Exchange Control Department of the South African Reserve Bank for the transfer of the required foreign currency. Yours faithfully OF PENSION FUNDS agterop)