On the 23rd of February, the Minister of Finance, Enoch Godongwana, outlined the government’s financial priorities for 2022 in his Budget Speech.
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:
- Budget Review 2022 – http://www.treasury.gov.za/documents/national%20budget/2022/budgetReview.aspx
- Exchange Control Circular No. 10/2022 – https://www.resbank.co.za/content/dam/sarb/what-we-do/financial-surveillance/financial-surveillance-documents/2022/10-2022.pdf
- 2022 Budget Review / Annexure F – Financial Sector Update – http://www.treasury.gov.za/documents/national%20budget/2022/review/Annexure%20F.pdf