Regulatory Alerts2018-04-01
Circular F.S.13: Approval of Bophuthatswana Stock and Amendment of Foreign Investment Limits for Friendly Societies
The Registrar of Friendly Societies issued Circular F.S.13 to approve the inclusion of R15 million in Republic of Bophuthatswana Registered Stock as a permissible asset under the Friendly Societies Act, 1956. Friendly societies must record this new security under item 6A of Statement D in their prescribed regulatory returns. The circular also restricts the existing 1.5% investment ceiling for foreign government securities to apply exclusively to issuers from Botswana, Lesotho, and Swaziland, thereby withdrawing Circular F.S.12.
FINANCIAL INSTITIONS OFFICE Private Bag X238 PRETORIA 0001
27 February 1980
CIRCULAR F.S.13 (To all friendly societies) APPROVAL IN TERMS OF SECTION 20(2)(i) OF THE FRIENDLY SOCIETIES ACT, 1956
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The following further issues have been approved and should be added to the list in paragraph 2 of circular F.S.9 of 20 October 1977; Republic of Bophuthatswana R15 million Registered Stock (Loans Nos. 1/80, 2/80 and 3/80).
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In the prescribed returns these issues should be included under a new item 6A of Statement "D".
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In terms of paragraph 2.1(b) of circular F.S.11 of 31 July 1979, as amended by paragraph 1 of circular F.S.12 of 12 November 1979, 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. After reconsideration of the matter it has been decided that the aforementioned limit will be applied only in respect of investments in bills, bonds and securities issued by the Governments of Botswana, Lesotho and Swaziland and by local authorities and institutions in these territories, which rank as assets of the kinds referred to in section 20(2) of the Act. This circular consequently amends paragraph 2.1(b) of circular F.S.11 of 31 July 1979. Circular F.S.12 of 12 November 1979 is hereby withdrawn.
SGD. J.J. KOTZE
REGISTRAR OF FRIENDLY SOCIETIES /MS