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Legal Resources

Fund rules and amendments 

The suite of Corporate Selection umbrella funds is managed according to the Pension Funds Act, 1956 (Act No. 24 of 1956) as amended, and other relevant acts, including Long-term Insurance Act, 1998 (Act No. 52 of 1998). As such, the fund has registered rules that govern its operations and management. These rules are set out by the trustees, who are in turn guided by the FSB's practice notes.


Fund rules



The suite of Corporate Selection umbrella funds takes out policies of investment and insurance which are a contract between the fund and the insurer. The policies are used to provide benefits to members according to the fund rules. Although members choose the policies, they are owned by the fund and not the members. Members pay contributions to the fund, which in turn pays premiums to the insurer, who will pay members the benefit upon retirement, death or withdrawal.


Investment policies


Group risk policies


Legislative matters

Pensions Fund Act

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 is 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.
Previous newsbreaks on Regulation 28 

Useful Regulation 28 documents                


Other notices   

Notice 1: Provided for a transition period for the implementation of Regulation 28 to be 1 July 2011 to 31 December 2011.This was to enable funds to adjust their monitoring and reporting systems and investments to ensure full compliance by 31 December 2011.

Notice 2: Exempted a fund from the obligation to immediately inform the Registrar when it exceeded any Regulation 28 asset limit. Instead, a fund would be required to inform the Registrar on a quarterly basis of all instances where it exceeded these limits. The legislation stipulated that compliance monitoring started on 1 January 2012 and reporting would be done in March, June, September and December.
The first reporting period would be in respect of the quarter 1 January 2012 to 31 March 2012. 

Notice 3: Prescribed reporting format for Regulation 28 in the Annual Financial Statements

Notice 4: Public entities for the purpose of paragraph 2.1(d) of Regulation 28.  

Notice 5: Conditions for securities lending transactions (compliance with this BN must take place by no later than 30 June 2012).



Liberty Group Limited (Reg. no 1957/002788/06) is a licensed Insurer and an Authorised Financial Services Provider (no 2409).