What is a Regulation 28 compliant fund?
What is a Regulation 28 compliant fund?
Regulation 28 is part of the Pension Funds Act and its purpose is to protect investors against poorly diversified investment portfolios, and ostensibly aims to ensure that investors’ hard-earned money is invested in a sensible way without too much exposure to risky assets.
What is Regulation 28 in South Africa?
Regulation 28 is issued under the Pension Fund Act. It limits the extent to which retirement funds may invest in particular assets or in particular asset classes. The main purpose is to protect the members’ retirement provision from the effects of poorly diversified investment portfolios.
What is the purpose of the Pension Fund Act?
The Pension Funds Act 24 of 1956 aims: to provide for the registration, incorporation, regulation and dissolution of pension funds and for matters incidental thereto.
What is a Section 14 transfer?
A Section 14 transfer is the transfer of retirement fund benefits from one retirement fund to another in terms of Section 14 of the Pension Funds Act. For Section 14.1 transfers, we are required to submit the transfer documents to the Registrar of Pension Funds for approval.
What is a regulation 28 report?
Regulation 28 is the regulation that applies where a coroner. is under a duty to make a report. In this regulation, a. reference to “a report” means a report to prevent other. deaths.
What does Regulation 28 to the Pension Funds Act deal with?
Simply put, Regulation 28 of the Pension Funds Act governs the way managers of pension funds invest in various asset classes, to safeguard workers retirement savings against risky investments.
Does a living annuity have to be regulation 28 compliant?
A suitable investment portfolio can be created from the Coronation range of unit trust funds. Living annuity investors are currently not subject to Regulation 28 of the Pension Funds Act, which mean that there are no prescribed investment limitations as in the case of a Retirement Annuity investment.
When did Regulation 28 come into effect?
1 July 2011
The revised Regulation 28 became effective on 1 July 2011. The Financial Services Board had subsequently provided an extension for compliance to 31 December 2011, to allow retirement funds and their service providers time to implement the necessary systems and contractual changes.
How do I transfer my pension from one company to another?
When changing employers, a member must always get the PF account transferred from the previous employer to the current employer by submitting Form 13(R). Alternatively, the member can also request for a transfer online by logging into the EPFO portal with a valid UAN and password.
Can I move my provident fund to another company?
Melanie, You can move your old provident fund (tax free) across to your new employer’s provident fund, or you can transfer it to a provident preservation fund (also tax free).
What is a prevention of future deaths report?
This is known as a ‘report under regulation 28’ or a Preventing Future Deaths report because the power comes from regulation 28 of the Coroners (Inquests) Regulations 2013. The report is sent to the people or organisations who are in a position to take action to reduce the risk.
What does regulation 28 mean for asset managers?
Regulation 28: What does it mean for investors? You may have seen that asset managers classify some of their multi-asset unit trust funds as being Regulation 28 compliant. This is an important distinction for investors who are saving towards retirement and want to ensure that their investment is not overly risky.
What is the point of the regulation 28?
Despite its claims, Regulation 28 does not set prudent asset limits; it merely restricts the maximum exposure to each asset class and underlying security. In this, it ignores the investment time horizon, minimum limits and diversification principles.
Which is the best Reg 28 compliant fund?
Over the five year period from 1 January 2009 to 31 December 2013, the top Regulation 28 compliant funds did extremely well in pretty difficult market conditions. In an environment where CPI averaged around 5.5%, the top funds delivered returns well above that:
What does Reg 28 mean for pension funds?
The majority of this money is placed in funds that meet the requirements of Regulation 28 of the Pension Funds Act – a provision that aims to limit the levels of risk to which investors are exposed.