Regulation 28 of the Pension Funds Act was amended effective on 1 July 2011, with a transitional period provided until 31 December 2011. It imposes limits on the investments of retirement’s fund and these limits are intended to protect retirement funds against making imprudent investments. Regulation 28 places limits on investments held by Retirement Funds (RA, Pension and Provident) by limiting the exposure to asset classes as well as issuer exposure, in order to prevent over-exposure of policyholders assets to investment risks. Stakeholders are required to adhere to these limits and to demonstrate compliance by reporting on these exposures quarterly.
This regulation imposes more onerous provisions in that there are now additional requirements: