Region

Jurisdiction

Regulator

2018-04-01

Circular 11: Approvals Under the Friendly Societies Act, 1956

The Financial Institutions Office issued Circular 11 to approve specific corporate and territorial investments for South African friendly societies under the Friendly Societies Act, 1956. The directive authorizes holdings in the Indian Industrial Development Corporation and the Transkei Development Corporation, subject to Treasury loan approvals and a 1.5 percent asset cap on non-South African securities, while mandating their inclusion in updated Statement D reporting items. Regulated entities must update their prescribed returns, obtain auditor-signed acknowledgements, and recognize that conflicting provisions in previous circulars are hereby withdrawn.

South Africa

Financial Sector Conduct Authority

FINANCIAL INSTITUTIONS OFFICE Private Bag X238 PRETORIA 0001

31 July 1979

CIRCULAR F.S. 11 (To all friendly societies)

APPROVALS IN TERMS OF SECTION 20(2)(h) OF THE FRIENDLY SOCIETIES ACT, 1956

1.1 The following further institution and issue have been approved and should be added to the list in paragraph 2 of Circular F.S. 9 of 20 October 1977:
```
Indian Industrial Development Corporation Limited
R5 million Corporation for Economic Development
Limited Local Registered Stock, 1985
```
1.2 In the prescribed returns this institution and issue should be included under item 6 of Statement "D".
APPROVAL IN TERMS OF SECTION 20(2)(i) OF THE FRIENDLY SOCIETIES ACT, 1956

2.1 The Republic of Transkei and the Transkei Development Corporation Limited have been approved, subject to the following conditions:
```
(a) The time of issue, the period and the aggregate
    amount of every loan shall have been approved by the
    Treasury; and
```

/...

   (b) the aggregate amount of the bills, bonds and

       securities issued by the governments of all
       territories other than the Republic of South
       Africa and by local authorities and institutions
       in such territories, which rank as assets of the
       kinds referred to in section 20(2) of the Act for
       any friendly society, shall not exceed 1½% of the
       minimum amount which the friendly society is
       required to hold in the said kinds of assets.

2.2 This Office is prepared to treat loans (including annuity loans) granted to local authorities in the Republic of Transkei prior to that country's inde= pendence as falling within the scope of the above approval.

2.3 In the prescribed returns the said bills, bonds or securities should be included under a new item 6A of Statement "D".

ACKNOWLEDGEMENT OF RECEIPT

A copy of this circular is enclosed for your auditor. Kindly have the attached acknowledgement form signed by him also before returning it to this Office.
Paragraphs 4 and 5 of Circular F.S.9 of 20 October 1977 are hereby withdrawn.

REGISTRAR OF FRIENDLY SOCIETIES /MV