Mboweni: Treasury not 'actively' considering prescribed assets

[Jopie Fourie]

National Treasury is not "actively" considering introducing prescribed assets, Finance Minister Tito Mboweni has said, while warning against comments that could potentially "scare" members into cashing out their funds early.

The minister was responding to a question from DA MP Geordin Hill-Lewis on Treasury's position on the prescription of assets. Hill-Lewis has in the past referred to prescribed assets as "pension theft".

Prescribed assets describe a policy where the state obliges institutions such as pension funds and insurance companies to invest a part of their funds in state institutions or bonds. The apartheid government maintained the policy for 33 years between 1956 and 1989.

While not official government policy, in its election manifesto for 2019 the ANC said it would investigate the prescription of assets.

The topic made headlines in August this year, when President Cyril Ramaphosa told Parliament there should be discussions in the pension fund industry around prescribed assets in light of the important role the funds play in development. The president was at the time responding to a question from former DA leader Mmusi Maimane. He did not at the time specifically say whether or not he supported the prescription of assets, confining his remarks to saying government would pursues policies in the interests of the public.

Mboweni: Treasury not 'actively' considering prescribed assets

In its 2019 election manifesto the ANC said it would investigate the prescribed assets.

www.fin24.com

 

[Jopie Fourie]

Golden....

The finance minister said this means long-term investments should supports economic development and growth while ensuring good returns based on fund and market fundamentals. "This is good for pension fund members as well as the country."

The minister also warned people making public comments about retirement funds not to "scare" fund members into cashing out their funds, which would negatively impacting their savings.

Lol... and so they continue to contradict each other and even themselves. The right hand does not know what the left hand is doing, neither does the left or right side of the brain. No fu***ing chance I am leaving my investments up to your chances!

 

[krycor]

Last I checked short of leaving the country, you can’t cash out an RA.. so no.. people can’t just pull it out.

 

[Jopie Fourie]

Last I checked short of leaving the country, you can’t cash out an RA.. so no.. people can’t just pull it out.

Correct. I have stopped contributions to mine. Will at least get 60% back the moment I am ever forced to leave. Or, will probably make the move when Appropriations are on the table just to get the 60% paid out then via financial emigration.

 

[NarrowBandFtw]

Last I checked short of leaving the country, you can’t cash out an RA.. so no.. people can’t just pull it out.

you can cash out a pension or provident fund when it's your first time though, ALL of it, after you pay the tax penalty of course

although with prescribed assets that tax penalty will start to look mighty cheap compared to losing it all

 

[ponder]

Where there's smoke there's fire, it's gonna happen.

 

[RedViking]

Will this so effect RA's with 10x or Allan Gray?

 

[ponder]

Will this so effect RA's with 10x or Allan Gray?

Yes and it applies to all companies.

Consider your options, as the state eyes your pension

If prescribed assets are implemented, SA pension funds may have to invest a portion of their assets into SOEs with social and economic development mandates.

www.moneyweb.co.za

 

[Speedster]

Correct. I have stopped contributions to mine. Will at least get 60% back the moment I am ever forced to leave. Or, will probably make the move when Appropriations are on the table just to get the 60% paid out then via financial emigration.

I'm surprised you haven't cashed out as yet. I mean, total collapse of the country is only days away and if you haven't got out yet there won't be any money left when you want to. You really should act quickly on this

 

[surface]

I'm surprised you haven't cashed out as yet. I mean, total collapse of the country is only days away and if you haven't got out yet there won't be any money left when you want to. You really should act quickly on this

You have no idea how much his 60% is, do you now? It is simply astronomical and things move magically when you have to move billions of pounds.

 

[Gaz{M}]

I think Tito decided instead to just spend like there is no tomorrow and run up the debt, instead of prescribed assets.

 

[tin4444]

^^^ I actually don’t think it is Tito, I really do think he wanted to cut spending by 200billion + but his own government is working against him with this as they just want to spend. He knows better than most what state the coffers are in and what the outcomes will be with downgrades and future debt repayments.

 

[C4Cat]

Will this so effect RA's with 10x or Allan Gray?

No, it won't affect anyone because it's not policy and is not currently being considered as policy.

 

[konfab]

No, it won't affect anyone because it's not policy and is not currently being considered as policy.

It is just on the election manifesto the main political force in this country:

The real danger of this clause is that it is an initial step towards the introduction of prescribed assets — an ANC position apparently slipped into the ANC 2019 election manifesto, as the corridors will have it, after the manifesto was approved by the ANC National Executive Committee (ANC).

The ANC manifesto states that it will “investigate the introduction of prescribed assets on financial institutions’ funds to unlock resources for investments in social and economic development”.

https://www.businesslive.co.za/bd/o...ets-will-be-brought-in-via-ancs-trojan-horse/

I am taking the tax hit and getting my money out the country rather than trusting the Ramamesisah and his merry band of communists with my money.

 

[C4Cat]

It is just on the election manifesto the main political force in this country:

https://www.businesslive.co.za/bd/o...ets-will-be-brought-in-via-ancs-trojan-horse/

I am taking the tax hit and getting my money out the country rather than trusting the Ramamesisah and his merry band of communists with my money.

That opinion is a stretch. I'll worry when the government actually makes concrete moves in that direction, not 'trojan horse' conspiracy opinions. Right now, it's not policy. In any event, I'm not convinced it's a terrible idea, tbh

 

[ToxicBunny]

That opinion is a stretch. I'll worry when the government actually makes concrete moves in that direction, not 'trojan horse' conspiracy opinions. Right now, it's not policy. In any event, I'm not convinced it's a terrible idea, tbh

Its a fscking terrible idea with the ANC in charge.. no ifs ands or buts...

 

[BBSA]

That opinion is a stretch. I'll worry when the government actually makes concrete moves in that direction, not 'trojan horse' conspiracy opinions. Right now, it's not policy. In any event, I'm not convinced it's a terrible idea, tbh

Throwing people's pension money down a black hole is a terrible idea.

 

[konfab]

That opinion is a stretch. I'll worry when the government actually makes concrete moves in that direction, not 'trojan horse' conspiracy opinions. Right now, it's not policy. In any event, I'm not convinced it's a terrible idea, tbh

So you don't think it is a terrible idea to give idiotic politicians the power to spend people's retirement as they see fit?

Besides, I know why you don't think it is bad idea. Such things tend to cause people to rush to get their money into assets that are not touchable by the government, like property. Which causes a nice surge in property prices. Which is great news if you are a civil engineer as it will lead to far more work.

And isn't a stretch, it is on the ANC's election manifesto. How much clearer can they tell you?

 

[C4Cat]

So you don't think it is a terrible idea to give idiotic politicians the power to spend people's retirement as they see fit?

Besides, I know why you don't think it is bad idea. Such things tend to cause people to rush to get their money into assets that are not touchable by the government, like property. Which causes a nice surge in property prices. Which is great news if you are a civil engineer as it will lead to far more work.

And isn't a stretch, it is on the ANC's election manifesto. How much clearer can they tell you?

It's not about government spending your money as they see fit. It's about investing in the country. Yes, the ANC ****ed up, especially during Zuma's reign - things were actually on track before. I also understand, and agree, it's difficult to put any trust in any government, especially the ANC. And yes, I see prescribed assets as an absolute last resort but if we want things to turn around here we need to take on the risk of investing more in the country, however we choose to do it. Otherwise you may as well just go now, you've already given up on any future here. It also becomes a self-fulfilling prophesy - everyone runs with their money because they are afraid the country will crash and burn, but the very act of everyone running away with their money is what causes the country to crash and burn. Shrug. No easy answers here but my opinion is that if you choose to stay here and raise a family then it's in your interest to support any initiatives that will help turn things around. My main disclaimer here is that prescribed assets should only be an option once corruption is dealt with publicly and comprehensively. Until people are held to account, money is retrieved and people are punished, it's an absolute no go from me too.

 

[Johnatan56]

It's not about government spending your money as they see fit. It's about investing in the country. Yes, the ANC ****ed up, especially during Zuma's reign - things were actually on track before. I also understand, and agree, it's difficult to put any trust in any government, especially the ANC. And yes, I see prescribed assets as an absolute last resort but if we want things to turn around here we need to take on the risk of investing more in the country, however we choose to do it. Otherwise you may as well just go now, you've already given up on any future here. It also becomes a self-fulfilling prophesy - everyone runs with their money because they are afraid the country will crash and burn, but the very act of everyone running away with their money is what causes the country to crash and burn. Shrug. No easy answers here but my opinion is that if you choose to stay here and raise a family then it's in your interest to support any initiatives that will help turn things around. My main disclaimer here is that prescribed assets should only be an option once corruption is dealt with publicly and comprehensively. Until people are held to account, money is retrieved and people are punished, it's an absolute no go from me too.

So you don't know how the current system works? Government already gets pension investment by advertising projects and promising a certain return, most of your low risk funds do this.

The difference here is that you cant pick what you want to invest in, who in their right minds would want to invest into Eskom?