Pension Funds Act, 1956 (Act No 24 of 1956)RegulationsPart VII : General28. Asset spreading requirements(1) Definitions |
In this regulation:—
"Act" means the Pension Funds Act, 1956 (Act No. 24 of 1956), and any word or expression to which a meaning is assigned in the Act is assigned to it in this regulation, unless otherwise defined;
"collective investment scheme" has the meaning assigned to it in section 1 of the Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002);
"credit ratings" means credit ratings issued by a credit rating agency as may be prescribed;
"crypto-asset" means a digital representation of value that is not issued by a central bank, but is capable of being traded, transferred or stored electronically by natural and legal persons for the purpose of payment, investment and other forms of utility; applies cryptographic techniques and uses distributed ledger technology;
[Regulation 28 definition inserted by section 2(a) of Notice No. 2230, GG46649, dated 1 July 2022: Effective 3 January 2023]
"derivative instrument" has the meaning assigned to it in section 1 of the Securities Services Act, 2004 (Act No. 36 of 2004);
"exchange" means:—
| (a) | an exchange licensed under section 10 of the Securities Services Act, 2004 (Act No. 36 of 2004); |
| (b) | any other exchange that is a full member of the World Federation of Exchanges; or |
| (c) | where a fund invests in a collective investment scheme, such an exchange as is referred to in Section 45(b)(ii) of the Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002); |
"fair value" has the meaning assigned to it in financial reporting standards and includes any other conditions as may be prescribed;
"financial reporting standards" has the meaning assigned to it in the Companies Act, 2008 (No. 71 of 2008);
"foreign asset" means an asset that is deemed foreign by the South African Reserve Bank for its reporting purposes, and subject to conditions as may be prescribed;
"foreign bank" means a bank that is not a South African bank and is domiciled, registered and supervised as a bank outside of South Africa;
"fund member policy" has the meaning assigned to it in Part 5A of the Regulations issued under the Long-term Insurance Act;
"fund of hedge funds" means a portfolio that invests only in hedge funds, but may also hold notes, coins, and a balance or deposit in a savings, current or money market account with a South African bank or a foreign bank, and subject to conditions as may be prescribed;
"fund of private equity funds" means a portfolio that invests only in private equity funds, but may also hold notes, coins, and a balance or deposit in a savings, current or money market account with a South African bank or a foreign bank, and subject to conditions as may be prescribed;
"hedge fund"—
| (a) | has the meaning assigned to it in paragraph 2 of the declaration by the Minister of Finance, in Government Notice No. 141 in Gazette No. 38503 of 25 February 2015 of the business of a hedge fund, to be a collective investment scheme to which the prescribed provisions of the Collective Investment Schemes Control Act, 2000 (Act No. 45 of 2002), apply; and |
| (b) | includes a foreign hedge fund approved in terms of section 65 of the Collective Investment Schemes Control Act, 2000; |
[Regulation 28 definition substituted by section 2(b) of Notice No. 2230, GG46649, dated 1 July 2022: Effective 3 January 2023]
"infrastructure" means any asset that has or operates with a primary objective of developing, constructing and/or maintaining physical assets and technology structures and systems for the provision of utilities, services or facilities for the economy, businesses, or the public;
[Regulation 28 definition inserted by section 2(c) of Notice No. 2230, GG46649, dated 1 July 2022: Effective 3 January 2023]
"investment policy statement" means a document which, at least:—
| (a) | describes a fund's general investment philosophy and objectives as determined by its liability profile and risk appetite; |
| (b) | addresses the principles referred to in subregulation (2)(c); and |
(c) complies with conditions as may be prescribed;
"Islamic debt instrument" means a bond based on the ownership of an underlying immovable property or a tangible asset or portfolio of immovable properties or tangible assets, governed by Shari'ah rules, and that is issued by:—
| (a) | the Government of the Republic; |
| (b) | the South African Reserve Bank; |
| (c) | any public entity listed in the Public Finance Management Act, 1999 (Act No. 1 of 1999); |
| (d) | a South African bank; or |
| (e) | a foreign bank |
that is negotiable and in respect of which the title to the underlying property or asset or portfolio of properties and assets is vested in a special purpose vehicle that derives its income from commercial activities related to that property, asset or portfolio;
"Islamic liquidity management financial instrument" means a financial instrument, governed by Shari'ah rules, issued by a South African bank or a foreign bank:—
| (a) | that is negotiable; and |
| (b) | in respect of which ownership of the underlying tangible asset or assets passes from a fund to a third party within seven business days from the date of purchase thereof, and at which purchase date the future sale price of the tangible asset or assets is fixed notwithstanding any increase or decrease in the fair value thereof; |
"listed" means to be compliant with the listings and disclosure requirements of an exchange and any other condition as may be prescribed;
"Long-term Insurance Act" means the Long-term Insurance Act, 1998 (Act No. 52 of 1998);
"long-term insurer" means a person registered or deemed to be registered as a long-term insurer in terms of the Long-term Insurance Act;
"pension preservation fund" has the meaning assigned to it in section 1 of the Income Tax Act, 1962 (Act No. 58 of 1962);
"PostBank" means the SA Post Office Limited established pursuant to section 3 the Post Office Act, 1958 (Act No. 44 of 1958), and the South African Postbank Limited Act, 2010 (Act No. 9 of 2010);
"prescribed" means prescribed by the Registrar by notice on the official website, as defined in section 1 of the Electronic Communications and Transactions Act, 2002 (Act No. 25 of 2002) of the Financial Services Board, unless notice in the Gazette is specifically required under a provision of the Act;
"private equity fund" means a managed pool of capital that:
| (a) | has as its main business the making of equity, equity orientated or equity related investments in unlisted companies to earn income and capital gains; |
| (b) | is not offered to the public as contemplated in the Companies Act, 2008 (No. 71 of 2008); |
| (c) | is managed by a person licensed as a discretionary Financial Services Provider as defined in the Code of Conduct for Administrative and Discretionary Financial Service Providers, 2003, or if a foreign private equity fund managed by a person licensed as a Category I Financial Services Provider that is authorized to render financial services on securities and instruments as defined in the Determination of Fit and Proper Requirements for Financial Services Providers, 2008; and |
| (d) | is subject to conditions as may be prescribed; |
"property company" means a company—
| (a) | of which 75% or more of the fair value of its assets consists of immovable property, irrespective of whether such property is held directly by that company as registered owner, or indirectly through ownership of the shares or the exercise of control over another company that is the registered owner of the property; or |
| (b) | of which 75% or more of its income is derived from investments in immovable property, or from an investment in a company of which 75% or more of the income of that company is derived from investments in immovable property; |
"provident preservation fund" has the meaning assigned to it in section 1 of the Income Tax Act, 1962 (Act No. 58 of 1962);
"reporting period" means the financial year determined in the rules of a fund;
"South African bank" means a bank or branch as defined in and registered under the Banks Act, 1990 (Act No. 94 of 1990), a mutual bank as defined and registered under in the Mutual Banks Act, 1993 (Act No. 124 of 1993), a cooperative bank as defined in the Cooperative Banks Act, 2007 (Act No. 40 of 2007), or the PostBank.