New foreign limits for SA retirement funds
April 04 2011
PENSION FUNDS ACT, 1956
REGULATION 28 – EXEMPTION IN RESPECT OF INVESTMENTS HELD OUTSIDE
THE REPUBLIC
The South African Reserve Bank has issued Exchange Control Circular No. 44/2010 on the increased prudential limits for foreign investment allowance. The relative limit in respect of retirement funds have increased from 20% to 25%.
Until the amendments to regulation 28 have been effected, to give effect to the increased exposure limit, funds would be required to apply for exemption to be able to utilise such increased limit. However, those funds that were previously exempted by the Registrar for purposes of the increased 20% limit need not apply, as they will be granted the exemption to the increased limit of 25%, by way of a letter shortly.