Regulation 28 of the pension funds act pdf

Regulation 28 references other acts and regulations that have been amended or substantially altered since 1998 reference is made to the acts directly as. Fsca guidance note 7, pfa notice 2 and pfa guidance notice 8. What a revised regulation 28 means for investors moneyweb. Sub funds are not pension funds as defined in the pfa and do not have separate legal personality and the special rules are no more than different chapters of the rules of a fund. However, principles were also introduced to strengthen the investment decisionmaking processes and improve the transparency and accountability by retirement funds to a retirement fund s members and the registrar of pension funds at the fsca financial sector conduct authority.

I, dube phineas tshidi, registrar of pension funds, hereby, in terms of regulation. It makes sure that you invest in different assets or types of assets so that you dont take unnecessary investment risks. South african government lets grow south africa together. This is done by limiting the maximum exposure to more risky asset classes, making sure that no unnecessary risks are taken with retirement money. In practice, most funds already comply with this as it is a requirement of pf. Transfer to pension fund referred to in section 4a of its assets held by. The relationship between crisa and regulation 28 of. An explanatory memorandum regarding the amendment of regulation 28. The government notice which issues these regulations repeals the regulations contained in rsa gn r.

Whatthe trustees may do with the fund sassets is set forth in the rules. Extensions section 279 of the fsr act see guidance note 5 of 2018 for lapsing of. Pension funds act 24 of 1956 sa sa gg 5679 brought into force in south africa and south west africa on 1 january 1958 by sa proc. The main purpose is to protect the members retirement provision from the effects of poorly diversified investment portfolios. The revised regulation 28 of the pension funds act regulates how retirement funds should invest their assets to ensure that their longterm commitments to. Any employer in the private sector managing its pension fund assets to be regulated by the commission. Section 1 defines union to include the territory, which is. The key reasons for the amendments to regulation 28 are. The revised regulation 28 of the pension funds act regulates how retirement funds should invest their assets to ensure that their longterm commitments to members are met. Appendix 1 regulation 28 to the pension funds act, 1956. We do not understand why bank exposure is restncted to 75% part1cularly g1ven that cisca and the current.

Amended by financial sector regulation act 9 of 2017 amended by. On 23 february 2018 the minister of finance, pravin gordhan, announced changes to regulation 28 of the pension funds act. Government notice 211 of 2018 gg 6697 came into force on date of publication. An act of parliament to provide for the grant and regulating of pensions. Pension funds act 24 of 1956 south african government. Pension funds amendment act, 2001 pdf version act no. To this end and to assist you with aligning your clients retirement annuities, preservation funds we provide a. It limits the extent to which retirement funds may invest in particular assets or in particular.

Under section 36 of the pension funds act, 1956 act no. Interpretation part ii registrar of pensions and insurance 4. Section 2791 of the financial sector regulation act 9 of 2017. Transfer of pension fund assets of the nigeria social insurance trust fund. Our engagement arises from our appointment as auditor of the fund and is for the purpose of assisting the board of fund to report to the registrar of pension funds the registrar. According to this amendment, the aim of this regulation is to ensure that the savings south africans contribute towards their retirement is invested in a prudent manner that not only protects the retirement fund member, but is channeled in ways that achieve economic development. According to this amendment, the aim of this regulation is to ensure that the savings south africans contribute towards their retirement is invested in a prudent manner that not only protects the retirement fund member, but. The national treasury today publishes the draft amendments to regulation 28 of the pension. Requirements for registration as a pension fund manager 149. Payment of contributions and certain benefits to pension funds.

Financial system council of regulators this council facilitates cooperation. Presentation on final reg 28 as gazetted 1,192kb final regulation 28 made under section 36 of the pension funds act, 1956 1,197kb explanatory memo to final regulation 28 771kb matrix of comments received on 2 december 2010 draft regulation 3,527kb. Pension funds act updated to 22 august 2017 act 24 of 1956 gon 839, g. This sets the asset allocation limits for individual. The pension scheme regulation act chapter 255 of the laws of zambia chapter 255 the pension scheme regulation act the pension scheme regulation act arrangement of sections part i preliminary section 1.

Regulation 28 overview regulation 28 to the pension funds act of 1956 provides for asset spreading requirements, i. Pension funds act 24 of 1956 legal assistance centre. In terms of section 17 of the financial services laws general amendment act, no. Report on compliance of schedule ib with regulation 28 of the act we have undertaken our engagement in accordance with section 15 of the pension funds act no. To this end and to assist you with aligning your clients retirement annuities, preservation funds we provide a table below which sets out the. Regulation 28 of the pension funds act sets limits to where investors should invest their retirement savings. Explanatory memorandum to draft regulation 28 of the. Regulation 28 aims to ensure that savings invested in retirement funds are invested in a prudent manner safeguarding the assets of these funds whilst taking on an acceptable level of risk. Regulation 28 is part of the pensions fund act and aims to ensure that individuals hardearned savings are invested in a sensible way and protected from poorly diversified portfolios. Below is a summary of the above documents, highlighting the important points. These relate to applications for retirement fund rule amendments, exemption from regulation 382c of the regulations to the pension funds act and guidance on the application of the default regulations. Pension funds amendment act 22 of 1996 abolition of restrictions on the jurisdiction of courts act 88 of 1996 judicial matters amendment act 104 of 1996 pension funds amendment act 94 of 1997 longterm insurance act 52 of 1998 maintenance act 99 of 1998 pension funds second amendment act 39 of 2001 pension funds amendment act 65 of 2001. It limits the extent to which retirement funds may invest in particular assets or in particular asset classes. Part i preliminary 1 short title this act may be cited as the pension and provident funds act chapter 24.

This is done by limiting the maximum exposure to more risky asset classes, making sure that no unnecessary risks are taken with retirement. Regulation 28 is part of the pensions fund act and aims to ensure that individuals hardearned savings are invested in a sensible way and protected from. Apr 24, 2018 this means that investors may now allocate up to 40% of assets outside south africa in terms of regulation 28 of the pension funds act, which governs the maximum exposure retirement funds may have. Some of the key principles to be applied by the fund and its board. Regulation 28 3i of the regulations to the pension funds act states that the aggregate exposure to foreign assets must not exceed the maximum allowable amount that a fund may invest in foreign assets as determined by the sarb, or such other amount as may be prescribed. The final version of revised regulation 28 in a nutshell. Regulation 28 of the pension funds act limits how you can invest pension monies by very simply limiting equities to 75%, listed property to 25% and offshore exposure to 30%. Includes the pension funds act pfa and the longterm insurance act ltia. Chapter i administration and application of act and interpretation of terms ss b 1 definitions. The main purpose of regulation 28 is to protect the. Fsca guidance note 7, pfa notice 2 and pfa guidance.

To provide for the registration, incorporation, regulation and dissolution of pension funds and for matters incidental thereto. Funds must comply with the limits set out in the revised regulation 28. Regulation 28 is issued under the pension fund act. Section 1 defines union to include the territory, which is defined as the territory of south west africa. Pension reform act 2004 national pension commission. Part i preliminary 1 short title this act may be cited as the pension and provident funds act. Regulation 28 gives effect to section 361 bb of the pension fund act, which limits the extent to which retirement funds like retirement annuities may be invested in particular kinds or categories of assets. Assurance report on compliance with regulation 28 of the. Regulation 28 to the pension funds act of 1956 provides for asset spreading requirements, i.

Legal foundations and system of rules and regulations governing the structure and operation of pension funds establish form of system and empower various parties to perform functions or protect interests supervision. To provide for the registration, incorporation, regulation and dissolution of pension funds and for matters. There have been many critics of these limits for some time advising people to cash in pensions as soon as possible, usually on resignation or at age 55, and move the money. Fsca financial sector conduct authority guidance notice. Section 17 8th may, 1942 remainder 1st january, 1946. They must also have a formal investment policy statement ips. An act to provide for the registration, incorporation, regulation and dissolution of pension and provident funds and for matters incidental to or connected with the foregoing. Fsca financial sector conduct authority guidance notice 1 of. Section 36 of the pension funds act, 1956 the financial sector conduct authority, under regulation 396 of the pension funds act, 1956 read with section 28b of the financial sector regulation act, 2017, hereby exempts retirement funds from the provisions of regulation 393a, to the extent and on the conditions set out in the schedule. Pension funds act 24 of 1956 sa parliament of namibia. Pension funds act 24 of 1956 namibia legal database. I, dube phineas tshidi, registrar of pension funds, hereby, in terms of regulation 28 of the regulations made under the pension funds act, 1956 no. Retirement investing can be done via a retirement annuity ra investment vehicle or wrapper as it is also known, or simply directly into the unit. The change to the offshore investment allowance also immediately causes a change to regulation 28 of the pension funds act.