On the 23rd of February, the Minister of Finance, Enoch Godongwana, outlined the government’s financial priorities for 2022 in his Budget Speech.

Annexure F of the 2022 Budget Review provides an update on regulatory changes in the financial sector. On page 165 of this annexure, changes are indicated and listed for the capital flows management framework for institutional investors.  The South African Reserve Bank (SARB), has since confirmed the implementation of these changes (Exchange Control Circular No. 10/2022 effective 23 February 2022).

With effect from the 23rd of February, the prudential limit of 30% and 40% respectively, as well as the African allowance of 10% have been combined into a single limit of 45% of total retail assets under management, applicable to all qualifying institutional investors.

Southwood Financial Planning would like to reassure our clients that we are aware of the regulatory changes. We are currently investigating how exactly this will affect portfolios and clients exposure levels. We will endeavour to share more insight and information with you as soon as possible.

The Budget Review, Annexure F and Circular can be accessed at the links below: