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How regulation in the financial industry will aid the 'healing process' post the 2008 financial crisis

Futuregrowth Asset Management chief investment officer Andrew Canter speaks to HWB Communications anchor Donald Paul about the issue of how regulation in the financial industry will aid the "healing process" post the financial crisis. Video: HWB Communications. Anchor: Donald Paul. Editing: Shane Williams.

29th July 2013

  

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Futuregrowth Asset Management chief investment officer Andrew Canter raises the issue of how regulation in the financial industry will aid the "healing process" post the financial crisis.

Video by HWB Communications (for Polity.org.za)

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. (Source: http://www.libertycorporate.co.za/legal-matters/Pages/Regulation-28.aspx)

Collective Investment Schemes Control Act

The Collective Investment Schemes Control Act, Act No. 45 of 2002 regulates the administration, management and sale of collective investments. The 2002 legislation replaced the Unit Trust Control Act of 1965 and makes provision for various types of collective investments, including hedge funds, open ended investment schemes, exchange traded funds and others. It is expected that the long awaited regulations for the sale and administration of hedge funds to retail investors will be published in 2013. (Source: http://www.psgonline.co.za/resources/Introduction-to-Collective-investments.php)

Edited by Creamer Media Reporter

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