Legal updates and opinions
News / News
Draft Amendments to the Pension Funds Act 24 of 1956: The Highlights
by Natalie Scott, Director and Kyra South, Associate
On Friday, 26 February 2021, the National Treasury released a Media Statement regarding the publication of the draft amendments (“Draft Amendments“) to Regulation 28 of the Pension Funds Act Regulations, 1962 (as amended) (“Regulations“), published under the Pension Funds Act 24 of 1956 (“Act“).
Regulation 28 of the Regulations requires asset managers to, inter alia, make (i) sustainable, (ii) responsible and (iii) transparent investments when dealing with Funds (defined in section 1 of the Act) (“Objectives“). In order to achieve the Objectives and to ensure that asset portfolios are appropriately diversified, asset managers are required to spread assets across a number of different asset classes (which classes are listed in table 1 under Regulation 28 of the Regulations).
The Draft Amendments seek to, inter alia, encourage asset managers to increase investments in infrastructure projects (and to bridge the existing infrastructure gap) by:
- including specific definitions for ‘infrastructure’ and ‘hedge fund’;
- segregating ‘hedge funds’, ‘private equity’ and ‘any other assets not listed in this schedule’ (“New Asset Classes“); and
- allocating specific limits for each of the New Asset Classes.
Under the Draft Amendments, a separate ‘infrastructure’ asset class has not been created. Instead, references to ‘infrastructure’ have been included in, inter alia, new Regulation 28(2)(c)(x) as a principle with which Funds are required to comply when making investment decisions.
Comments on the Draft Amendments are required to be submitted to Mr Basil Maseko at the National Treasury at retirement.reform@treasury.gov.za by no later than 29 March 2021.
Latest News
Signed, sealed and settled
by Bradley Workman-Davies, Director and Isabella Keeves, Candidate Attorney Where the continuation of the employment relationship between an employer and [...]
If SA wants to foster private equity, it must craft clear, consistent rules for preference shares – and then stick to them.
by Shayne Krige, Director and Head of Investment Funds First published on CityWire South Africa South Africa is grappling with [...]
Business Rescue – SARS Liability Arises on the Transaction, Not the Assessment – The Henque Case
By Eric Levenstein - Director and Head of Insolvency & Business Rescue, Amy Mackechnie - Senior Associate and Kaymana Han [...]
What Does the Domestic Violence Act Say About Gaslighting?
By Dakalo Singo (Director, Head of Pro Bono Practice) The short answer: nothing! But that is not the end of [...]
Understanding Domestic Violence – Why it is difficult to leave an abusive relationship
By Dakalo Singo (Director, Head of Pro Bono Practice) Introduction People in abusive relationships are often asked: "Why don't you [...]
Blacklisting in South Africa – A Women’s Month Crash Course
By Naledi Motsiri (Director) and S'nenhlanhla Lushaba (Candidate Attorney) August, celebrated as Women’s Month in South Africa, is a time [...]