Regulatory Alerts2018-03-31
PF Circular 69: Financial Institutions Amendment Act, 1989
The South African Department of Finance issued PF Circular 69 to implement amendments to the Pension Funds Act, 1956, effective 1 October 1989, which abolish the mandatory 53% prescribed asset investment requirement and empower the Minister to establish new investment limits. The circular introduces Regulation 28, mandating annual auditor and valuator reporting on fund assets, outlining exemption procedures for funds that temporarily or prudently exceed prescribed limits, and clarifying the asset classification of linked and unlinked insurance policies. Trustees must ensure all investment transactions adhere to strict integrity and arm's-length standards under the Financial Institutions (Investment of Funds) Act, 1984, and acknowledge receipt of the circular by returning the attached form to the Registrar of Pension Funds.