Numerous acts and regulations define the South African investment environment. Some pertain to the entire financial industry, while others are specific to sub-sectors. In addition, the regulatory landscape is changing constantly. It is hoped that this section will help to keep you abreast of the legislation which has the biggest impact on your investments.
Regulation 28 falls under the gambit of the Pension Fund Act and sets out the limits that govern the investments held by retirement funds. In doing so, the regulation aims to ensure that retirement funds adhere to principles of diversification and prudent investments. Retirement funds are required to disclose their Regulation 28 status and take remedial action if the statutory limits are breached.
Regulation 28 Table Summary
Regulation 29 falls under the gambit of the Medical Schemes Act and sets out the limits that govern the investments held by medical aid schemes.
In doing so, the regulation aims to ensure that medical aid schemes adhere to principles of diversification and prudent investments, as well as have sufficient liquidity to meet the claims as they arise.
Schemes are required to disclose their Regulation 29 status and take remedial action if the statutory limits are breached.
Regulation 29 imposes more strict investment limits and therefore also automatically satisfies Regulation 28 requirements. Retirement funds are therefore permitted to invest in Regulation 29 compliant portfolios.Regulation 29 Table Summary
Financial Advisory and Intermediary Services Act, 2002 (FAIS)
This act aims to regulate the rendering of certain financial advisory and intermediary services to clients and sets out the recourse that members of the public have when proper advice and process are not enforced.
Financial Intelligence Centre Act, 2001
This act aims to establish a Financial Intelligence Centre and a Counter-money Laundering Advisory Council in order to combat money laundering activities and the financing of terrorism and related activities.
The Financial Intelligence Centre Act, 2001 (FICA) aims to prevent money laundering and fraud. It therefore sets out strict requirement which need to be met before any money can change hands. This is in line with international best practice.
In terms of section 21 of FICA, STANLIB is required to establish the identity and verify the details of its clients.
The exact requirements differ depending on the type of legal entity. For example, individuals will have to provide different information to institutions. The documentation required is to establish the person or entity’s true identity. To this end, documents need to be originals or true certified copies of originals.
Please click here to see the listing of all organizations and natural persons, and then select the type relevant to you to view for the your exact FICA requirements:
Collective Investment Schemes Control Act
Consumer Protection Act
Consumer Protection Act, 2008
The act’s intention is to promote a fair, accessible and sustainable marketplace for consumer products and services and for that purpose to establish national norms and standards relating to consumer protection. Furthermore, it aims to provide for improved standards of consumer information, to prohibit certain unfair marketing and business practices, to promote responsible consumer behaviour, to promote a consistent legislative and enforcement framework relating to consumer transactions and agreements, and to establish the National Consumer Commission. http://www.acts.co.za/consumer_protection_act_2008/index.htm