Regulatory Alerts2018-04-01
Circular 12: Amendment to Foreign Asset Limits for Friendly Societies
The Registrar of Friendly Societies issued Circular 12 to amend prior regulations governing the permissible foreign asset holdings of friendly societies. The directive caps the aggregate value of bills, bonds, and securities issued by non-South African governments and local authorities at 1.5 percent of the minimum required amount for those specific asset classes. Explicitly excluding Transkei issuances, the circular also mandates that auditors sign and return an acknowledgement form to the issuing Office.
FINANCIAL INSTITUTIONS OFFICE Private Bag X238 PRETORIA 0001
12 November 1979
CIRCULAR F.S. 12 (To all friendly societies)
- Circular F.S. 11 of 31 July 1979 is hereby amended by the substitution for subparagraph (b) of paragraph 2.1 of the following subparagraph:
"(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 (excluding the aggregate amount of bills, bonds and securities issued by the Government of the Republic of Transkei and by local authorities and institutions in the Republic of Transkei), 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."
- 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.
REGISTRAR OF FRIENDLY SOCIETIES /MEB