Today's Labour News

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MboweniBL Premium reports that the Treasury has for the first time categorically denied that it is actively considering the introduction of prescribed assets.  

Finance minister Tito Mboweni also warned on Tuesday that making public comments on such a threat could result in workers cashing in their pension funds prematurely.  At its national conference in December the ANC said the introduction of prescribed assets — which would require pension funds to invest in government bonds and perhaps state-owned entities — would be investigated.  Critics have warned that such a measure would result in lower returns on pension fund assets.  “I want to assure all members of any retirement fund that government’s first and foremost responsibility is to protect their funds at all times, and we have in fact strengthened our regulatory system to continue to do so … This naturally means investing for the long term, in ways that support economic development and growth, and earning good returns based on fund and market fundamentals,” Mboweni indicated in a written reply to a parliamentary question.  The minister emphasised in his reply that the Treasury had not held any consultative meetings in 2019 with industry or anyone else about prescribed assets.

  • Read the full original of the report in the above regard by Linda Ensor at BusinessLive (paywall access only)

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