In this newsletter:
Benchtest 09.2013, the Benchmark Actuarial Report 2013, investing in offshore unit trusts, RFS office closure, news on the National Pension Fund and more...
Hugely successful Patrice Motsepe, founder and chairman of African Rainbow Minerals one of the largest individual shareholders of Sanlam, shares his vision for the future of South Africa, that is as relevant to us in Namibia and should be heeded by our politicians and policy makers:
Investment in foreign unit trusts
Regulation 28 restricts investments in banks and in building societies to institutions registered in terms of the relevant law in Namibia. Investments in bills, bonds and securities issued by foreign governments or other institutions, requires approval of the country and the institution by the Registrar. Regulation 28 also recognises only stock exchanges registered in Namibia or within the common monetary area for the purpose of determining market value for a quoted asset.
Regulation 28 requires an exposition of a Namibian pension fund’s investments as set out in Annexure 1 to the regulation, based on the market value of the fund’s investments. Market value is to be determined in one of two possible manners:
The implication of the afore going is that a Namibian pension fund cannot invest in any asset that is not listed on a Namibian licensed stock exchange or a stock exchange within the common monetary area, unless market value can be determined in accordance with section 19(5A) of the Pension Funds Act.
Our clients will be advised of arrangements for the period up to the office closure to ensure that all day-to-day business is processed in time. As a matter of course this will require that due dates for submission of documentation will be earlier than normally.
We humbly request all clients to assist and cooperate to avoid any last minute emergencies and most importantly, your understanding and indulgence!
News from our regulators
Social Security Commission issues draft of new Employees Compensation Act
The Social Security Commission recently issued a draft Employees Compensation Act that is to replace its predecessor legislation, Act 30 of 1941 that was known as Workmens Compensation Act and later ‘re-styled’ Employees Compensation Act.
Proposed changes to Social Security Act
Things were very quiet around the National Pension Fund for quite some time. Social Security recently issues draft amendments to the Social Security Act for comment. The draft inter alia proposes changes to the framework for the National Pension Fund in formulating a regime for exempting ‘employees’ as defined in the Act from membership of the National Pension Fund in section 21(1).
Interestingly, an enquiry with Namfisa revealed that the pension funds regulator was not consulted and is not aware of the proposed changes although they will impact on pension funds and the manner in which they are regulated.
Section 21 (1)
News from the market
Download the notification here...
The recent determination by the FAIS Ombud, concerning a Bluezone investment, was scathing in its comments on the lack of homework done by the advisor before placing the client’s funds in this particular scheme.”
Read the full article that appeared in Insurance Gateway of 30 September 2013 here...
Read the full article here…
Read the article here...