Regulation 28

What is Regulation 28?

Regulation 28 impacts every member of every retirement fund. It limits the extent to which retirement funds can invest in particular assets or asset classes.

Why Regulation 28?

The purpose of this regulation is to protect investors in retirement funds from the effects of poorly diversified investment portfolios, over-exposure to higher-risk asset classes as well as complex financial instruments and portfolios. The regulation aims to ensure that the savings South Africans contribute towards their retirement are invested in a prudent manner that not only protects the retirement fund member, but are channelled in ways that achieve economic development and growth. As the assets of a fund are invested in a policy of insurance, the policy’s portfolio composition is required to comply with the asset limits of regulation 28.

Previous Newsbreaks on Regulation 28

Useful Regulation 28 documents

Other Notices

  • Notice 1 provides for a transition period for the implementation of Regulation 28 to be 1 July 2011 – 31 December 2011.This is to enable funds to adjust their monitoring and reporting systems and investments to ensure full compliance by 31 December 2011.

The notice takes effect on publication thereof.

  • Notice 2 exempts a fund from the obligation to immediately inform the Registrar when it exceeds any Regulation 28 asset limit.  Instead, a fund will be required to inform the Registrar on a quarterly basis of all instances where it exceeded these limits. The legislation stipulated that compliance monitoring starts on 1 January 2012 and reporting will be done in March, June, September and December.

    The first reporting period will be in respect of the quarter 1 January 2012 – 31 March 2012.
  • Notice 3 – prescribed reporting format for Regulation 28 in the Annual Financial Statements

  • Notice 4 – Public entities for the purpose of paragraph 2.1(d) of Regulation 28


  • Notice 5 – Conditions for securities lending transactions (compliance with this BN must take place by no later than 30 June 2012)

Portfolios

Contact Us

For further information or queries, please contact us on lc.communications@liberty.co.za