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Regulation 28 of the Pension Funds Act Under the Spotlight

March 2, 2021

National Treasury

Draft amendments to Regulation 28 of the Pension Funds Act have been published for public comment.

In a statement, national treasury pointed out that the proposed amendments are designed to encourage investment in infrastructure.

According to treasury, the draft amendments follow the “2021 Budget and 2020 MTBPS announcements that government is in the process of reviewing Regulation 28 to make it easier for retirement funds to invest in infrastructure”.

Treasury clarified that Regulation 28, issued in terms of section 36(1)(bB) of the act, “reduces excessive and concentration risk to member savings and ensures protection by limiting the extent to which retirement funds may invest in a particular asset or in particular asset classes”.

The proposed amendment aims to introduce a more precise definition of infrastructure to enable enhanced data and measurement.

The draft amendment also seeks to split asset class “hedge funds, private equity and any other assets not listed in this schedule” into “hedge funds”, “private equity” and “any other assets not listed in this schedule” as stand-alone asset classes allowing for specific limits to each of the asset classes.

Comment is invited until 29 March 2021.

Meanwhile, in Government Gazette 44200, the Independent Regulatory Board for Auditors (IRBA) called for nominations of candidates to serve on the IRBA board.

Successful nominees will serve a two-year term with one renewal.

According to IRBA, due consideration will be given to the Auditing Profession Amendment Bill that requires including two persons with at least 10 years’ experience in auditing who were formerly registered as auditors and two advocates/attorneys with at least 10 years’ experience in practicing law.

Nominations are invited until 31 March 2021.

In Gazette 44191, the Financial Sector Conduct Authority published proposed amendments to the listing requirements of A2X for comment.

The proposed amendments were drawn up in terms of the Financial Markets Act.

Objections are invited within 14 days of the date of publication.

The South African Revenue Service published amendments to Schedule 1 of the Customs and Excise Act:


• Gazette 44194 – Notice 147 – Amendment to Part 6 of Schedule No. 1, by the insertion of Note 4 as well as the substitution of various items under export tax item 193.00, in order to insert the African Continental Free Trade Agreement (AfCFTA) column and reduce the rate of export duty as promulgated in the Taxation Laws Amendment Act, 2020, on 20 January 2021 to free until 31 July 2021 – With effect from 1 March 2021 up to and including 31 July 2021;
• Gazette 44198 – Notice 150 – Amendment to Part 6 of Schedule No. 1, by the substitution of the export tax rates under export tax item 193.00, as promulgated in the Taxation Laws Amendment Act, 2020, on 20 January 2021 – With effect from 1 August 2021.