The Act on Regulation 28
On 23 February 2011 the Minister of Finance, Pravin Gordhan, announced changes to Regulation 28 of the Pension Funds Act.
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 and growth". Thereby, Regulation 28 aims to protect the investor. The amendment to Regulation 28 of the Act prescribes the maximum exposure that retirement fund investments may have to various asset classes, for example:
- 25% in property
- 25% in offshore assets
- 75% in equities
To read more about the Act on Regulation 28, please click here.