Medical Schemes Act, 1998 (Act No. 131 of 1998)RegulationsRegulations in terms of the Medical Schemes ActChapter 8 : Accumulated funds and assets29. Minimum accumulated funds to be maintained by a medical scheme |
| 1) | In this Regulation "accumulated funds" means the nett asset value of the medical scheme, excluding funds set aside for specific purposes and unrealised non-distributable reserves. |
| 2) | Subject to subregulations (3), (3A) and (4), a medical scheme must maintain accumulated funds expressed as a percentage of gross, I annual contributions for the accounting period under review which may not be less than 25%. |
| 3) | A medical scheme must maintain accumulated funds, expressed as percentage of gross annual contributions, of not less than 10% during the first year after these regulations have come into operation, 13,5% during the second year, 17,5% during the third year, and not less than 22% during the fourth year. |
| 3A) | Notwithstanding the provisions of subregulation (3), a medical scheme which is registered for the first time after the coming into operation of these regulations must maintain accumulated funds, expressed as a percentage of gross annual contributions, of not less than – |
| a) | 10% during the year in which the scheme was registered; |
| b) | 13.5% during the year after the year of registration; |
| c) | 17,5% during the second^ year after the year of registration; and |
| d) | 22% during the third year after the year of registration. |
| 4) | A medical scheme that for a period of 90 days fails to comply with subregulations (Z), (3) or (3A) must notify the Registrar in writing of such failure, and must provide information relating to — |
| a) | the nature and causes of the failure; and |
| b) | the course of action being adopted to ensure compliance therewith. |