Information Circular 1 of 2012 - Annexure: Non-compliance Report

1
2
3
3.1 Assets which are subject to the grandfathering provision as set out in regulation 28(3)(c );
3.2
3.3 Where asset limits are exceeded as a result of the change in fair value or characteristic of the assets, as set out in regulation 28(3)(j); and
3.4 Where funds have exceeded the limits for reasons other than regulation 28(3)(j) but have obtained exemption in terms of regulation 28(9).
4
4.1
4.2
4.3
5 The quarterly report must be submitted in the electronic template provided for on the FSB Website and the scanned version of the signed quarterly report (Schedules 1 and 2) must be attached to the Quarterly Non-compliance Reporting package as a .pdf file or a .tif file. The following need not to be reported on:- Where funds exceed the limits for reasons other than regulation 28(3)(j) and have not been granted exemption in terms of regulation 28(9), they are required to complete the non-compliance report on a fund level, issuer/entity level and member level , where applicable. In the following instances, funds are not required to complete this report:
Notes:
Assets which are invested in Regulation 28 compliant CIS portfolios and/or insurance policies for which a certificate of compliance has been obtained as set out in regulation 28(8)(b); Where a full transfer was approved by the Registrar in terms of section 14 of the Act. Where a liquidator has been appointed and such appointment has been approved by the Registrar in terms of section 28(2) of the Act; Where a fund has been exempted from liquidation in terms of section 28(17) of the Act; or Funds are only required to report on non-compliances for purposes of regulation 28 for the relevant quarter and must complete all applicable fields. REGULATION 28 QUARTERLY NON-COMPLIANCE REPORT

Fund name: ……………………………. Quarter ending on:………………… Assets held in compliance with Regulation 28 Fair Value A Total assets of the fund on quarter end B Less: Items of Statement of Net Assets and Funds:

B.1 Plant and Equipment
B.2 Current Assets (excluding cash at bank)
C Sub-total (A - B)

Instances of non-compliance at fund level
Table 1
items Description Local Percentage of
Fair value Reg 28 limits
Foreign
(Excluding
Africa)
Percentage of
Fair value Reg 28 limits* Africa Percentage of Fair value Reg 28 limits* Total Percentage of Fair value Reg 28 limits R % % R % % R % % R % % 1.1, 1.2 Cash and Deposits 100 100 2 Debt instruments including Islamic debt instruments 75/100 75/100 2.1(a) Debt instruments guaranteed by the Republic 100 ----- ----- ----- ----- ----- 100 Debt instruments not guaranteed by the Republic 75 75 2.1(b) - Debt instruments guaranteed by a foreign government 25 25 2.1(c ) - Debt instruments guaranteed by a South African Bank 75 75 2.1(c )(i,ii,iii) - Listed on an exchange 75 75 2.1(c )(iv) - Not listed on an exchange 25 25 2.1(d)

• Debt instruments guaranteed by an entity or public entity or debt instruments issued or
  guaranteed by a public entity under the Public Finance Management Act 50 50 2.1(d)(i) - Listed on an exchange 50 50 2.1(d)(ii) - Not listed on an exchange 25 25 2.1(e) - Other debt instruments 25 25 2.1(e)(i) - Listed on an exchange 25 25 2.1(e)(ii) - Not listed on an exchange 15
  3.1 Equities 75 75
  3.1(a)(i,ii,iii) - Listed 75 25 75
  3.1(b) - Not listed 10
  4.1 Immovable property 25
  4.1(a)(i,ii,iii) - Listed 25
  4.1(b) - Not listed 15
  5.1 Commodities 10
  6 Investment in the business of a participating employer 5/10 ----- ----- ----- ----- ----- 5/10 6(a) - Section 19(4) of the Pension Funds Act 5 ----- ----- ----- ----- ----- 5 6(b) - to the extent it has been allowed by an exemption in terms of section 19(4A) of the Pension Funds Act 10 ----- ----- ----- ----- ----- 10 7 Housing loans granted to members - section 19(5) 95 ----- ----- ----- ----- ----- 95 8.1 Hedge Funds, private equity funds and any other assets not referred to in this schedule 15 8.1(a) - Hedge Funds 10 8.1(b) - Private equity funds 10 8.1(c ) - Any other assets not referred to in this schedule 2.5 NON-COMPLIANCE ON FUND LEVEL
  SCHEDULE 1A
  R

• As per prescribed SARB maximum limits, otherwise as stated in this column

Fund name: ……………………………. Quarter ending on:…………………
Table 1
items Instances of non-compliance Reg 28 limits Number of members non￾compliant duing the period Number of members non￾compliant at end of period Highest percentage exceeded on member level Number of issuers / entities non￾compliant during the period Number of issuers/ entities non￾compliant at end of period Highest percentage exceeded on issuer/ entity level % % % CASH AND DEPOSITS
1.1 Notes and coins, any balance or deposit in an account held with a South African bank (Inside
the Republic) 25
1.1 A money market instrument issued by a South African bank including an Islamic liquidity
management financial instrument (Inside the Republic) 25
1.1 Any positive net balance in a margin account with an exchange (Inside the Republic) 25
1.1 Any positive net balance in a settlement account with an exchange, operated for the buying
and selling of assets (Inside the Republic) 25
1.2 Any balance or deposit held with a foreign bank (Foreign) 5
1.2 Any balance or deposit held with an African bank (Foreign) 5
1.2 A money market instrument issued by a foreign bank including an Islamic liquidity
management financial instrument (Foreign) 5
DEBT INSTRUMENTS INCLUDING ISLAMIC DEBT INSTRUMENTS (Inside the Republic/ Foreign) 2.1(b) Debt instruments issued or guaranteed by the government of a foreign country 10 2.1(c )(i) Debt instrument issued/guaranteed by a South African Bank: listed on an exchange with an issue market capitalisation of R20 billion or more, or an amount or conditions as prescribed 25 2.1(c )(ii) Debt instrument issued/guaranteed by a South African Bank: listed on an exchange with an issuer market capitalisation of between R2 billion and R20 billion, or an amount or conditions as prescribed 15 2.1(c )(iii) Debt instrument issued/guaranteed by a South African Bank: listed on an exchange with an issuer market capitalisation of less than R2 billion, or an amount or conditions as prescribed 10 2.1(c )(iv) Debt instrument issued/guaranteed by a South African Bank: not listed on an exchange 5 2.1(d)(i) Debt instruments guaranteed by an entity or public entity or debt instruments issued or guaranteed by a public entity under the Public Finance: listed on an exchange 10 2.1(d)(ii) Debt instruments guaranteed by an entity or public entity or debt instruments issued or guaranteed by a public entity under the Public Finance: not listed on an exchange 5 2.1(e )(i) Other debt instruments : listed in an exchange 5 2.1(e )(ii) Other debt instruments: not listed in an exchange 5 NON-COMPLIANCE ON MEMBER LEVEL AND ISSUER/ ENTITY LEVEL
SCHEDULE 1B
MEMBER LEVEL ISSUER/ENTITY LEVEL

SCHEDULE 1B (continue) NON-COMPLIANCE ON MEMBER LEVEL AND ISSUER/ ENTITY LEVEL
Fund name: ……………………………. Quarter ending on:…………………
Table 1
items Instances of non-compliance Reg 28 limits Number of members non￾compliant duing the period Number of members non￾compliant at end of period Highest percentage exceeded on member level Number of issuers / entities non￾compliant during the period Number of issuers/ entities non￾compliant at end of period Highest percentage exceeded on issuer/ entity level % % % EQUITIES (Inside the Republic/ Foreign) 3.1(a)(i) Preference and ordinary shares in companies, excluding shares in property companies, listed on an exchange: issuer market capitalisation of R20 billion or more 15 3.1(a)(ii) Preference and ordinary shares in companies, excluding shares in property companies, listed on an exchange: issuer market capitalisation of between R2 billion and R20 billion 10 3.1(a)(iii) Preference and ordinary shares in companies, excluding shares in property companies, listed on an exchange: issuer market capitalisation of less than R2 billion 5 3.1b Preference and ordinary shares in companies, excluding shares in property companies, not listed in an exchange 2.5 IMMOVABLE PROPERTY (Inside the Republic/ Foreign) 4.1ai Preference shares, ordinary shares and linked units comprising shares linked to debentures in property companies, or units in a Collective Investment Scheme in Property, listed on an exchange: issuer market capitalisation of R10 billion or more 15 4.1aii Preference shares, ordinary shares and linked units comprising shares linked to debentures in property companies, or units in a Collective Investment Scheme in Property, listed on an exchange: issuer market capitalisation of between R3 billion and R10 billion 10 4.1aiii Preference shares, ordinary shares and linked units comprising shares linked to debentures in property companies, or units in a Collective Investment Scheme in Property, listed on an exchange: issuer market capitalisation of less than R3 billion or an amount or conditions as prescribed 5 4.1b Immovable property, preference and ordinary shares in property companies, and linked units comprising shares linked to debentures in property companies, not listed on an exchange 5 COMMODITIES (Inside the Republic/ Foreign) 5.1ai Gold (including Kruger Rands) 10 5.1aii Each other commodities 5 INVESTMENTS IN THE BUSINESS OF A PARTICIPATING EMPLOYER INSIDE THE REPUBLIC 6a Section 19(4) of the Pension Funds Act 5 6b To the extent it has been allowed by an exemption in terms of section 19(4A) of the Pension Funds Act 10 HEDGE FUNDS, PRIVATE EQUITY FUNDS AND ANY OTHER ASSET NOT REFERRED TO IN THIS SCHEDULE (Inside the Republic/ Foreign) 8.1ai Funds of hedge funds 5 8.1aii Hedge funds 2.5 8.1bi Funds of private equity funds 5 8.1bii Private equity funds 2.5 8.1c Other assets not referred to in this schedule and excluding a hedge fund or private equity fund 2.5 MEMBER LEVEL ISSUER/ENTITY LEVEL

Fund name: ………………….. Quarter ending on:………………… ……………………………………………… CHAIRMAN DATE ………………………………………………….. PRINT NAME Note: Where the completion, submission and declaration in respect of this return has been delegated to the principal officer, board member, administrator or any other person/entity, such delegation must be duly authorised and it should be noted that the board of the fund remains ultimately responsible for the accuracy and completeness of this submission. ………………………………………………….. The Board hereby confirms that the information contained in Schedules 1A and 1B is, to the best of our knowledge accurate and complete. Declaration by the Board of management of the Fund
SCHEDULE 2