With prescribed assets government can require pension funds to allocate a percentage of their assets for government-approved projects.
Finance deputy minister Dr David Masondo has indicated that government is committed to respect the investment mandates of pension funds to increase investment turnover based on acceptable risk. Picture: iStock
“Although retirement savings are compulsory, members still have choices related to accessing a portion of their assets and can choose different contribution rates. Therefore, negative perceptions can reduce the rate of savings in South Africa, which is already low.” Els said in a free democratic society with a market-friendly economic system, using prescribed assets is an even worse idea.
“If an investment option has the required return and reasonable risks, investors will invest based on the merit of the investment. Ann Leepile, CEO of Alexforbes Investments, said they do not interpret Masondo’s statement as a signal that government is considering prescription.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
NPA seizes millions in Bosasa asset raid and Transnet’s R2.3 billion legal headacheHere are 5 important things happening in South Africa today (7 August 2024).
Read more »
South African crypto asset platform launches R30-million capital raiseAfrica’s first tokenised financial assets exchange has issued the “A” preference shares of a South African reverse mortgage company, Water Finance.
Read more »
Dawie Roodt-backed crypto asset platform going bigMesh.trade is a South African blockchain startup tempered with pragmatic realism.
Read more »
Kaizer Chiefs could still lose a key asset with European side lurkingKaizer Chiefs are waiting to secure reinforcements before they entertain a big offer for one of their existing stars.
Read more »
South Africa's New Unity Government Must Draw On the Country's Greatest AssetAnalysis - South Africa's economy is strained, unemployment and crime are extremely high, policing is ineffective and the public service isdysfunctional. Francois Venter was involved in drafting the country's transitional 1993 and final 1996constitutions. Since then, he has researched comparative constitutional law and theory.
Read more »
New crypto services on Kotani Pay’s radarThe fintech firm plans to expand its crypto offerings after being awarded a Crypto Asset Service Provider licence by FSCA.
Read more »