What is Regulation 28

  • Regulation 28 was implemented on 1 January 2012 to protect investors from overexposure to high risk asset classes as well as poorly diversified investment portfolios.

  • It prescribes certain maximum limits with regard to the various types of asset classes that retirement funds may invest in. Previously these maximum limits were only applied at fund level but in terms of the recent amendments, these limits are now applied at member level.

Regulation 28 Limits

The limits are as follows:

  • A maximum exposure of 75% to equity investment.
  • A maximum exposure of 25% to property investment.
  • A maximum exposure of 30% to offshore investments.
  • A maximum of 100% in cash.
All new investments in retirement funds will have to comply with the above limits.

Regulation 28 Transactions

  • Portfolio's may remain unchanged unless you wish to do any of the transactions below, on your portfolio.
  • The following table illustrates what constitutes a transaction:
Transaction Non Transaction
New debit order Existing debit orders or cancellation thereof
Debit order interruption Fund Class Change
Additional investments Annual Escalations on existing debit orders
Switches Divorce order withdrawals
Withdrawals from preservation funds Reinvested distributions
Section 14 transfers Existing Phase-in
Increasing or decreasing existing debit order amounts (excluding existing escalations) Removal of a unit trust by the administrator, fund mergers or fund closures
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