Regulatory Alerts2018-04-01
Friendly Societies Circular 30: Increase of Benefit Limitations and Exemption Thresholds
The South African Financial Services Board issued Circular 30 to implement amendments to the Friendly Societies and Financial Institutions Acts effective 1 July 1993. The directive establishes a maximum benefit cap of R5,000 for endowment and contingency insurance and R144 annually for annuities, mandating that any society exceeding these thresholds register as a formal insurance company. It further advises that the Registrar may exempt qualifying societies with annual incomes not exceeding R100,000 from specific statutory provisions under the Friendly Societies Act.
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