Today's Labour News

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ancHilton Tarrant writes that the ANC is once again eyeing the notion of prescribed assets, in terms of which money managers will be forced to invest a portion of their funds in state-mandated areas and/or companies.  

In its 2019 Election Manifesto, the party indicates that it will “Investigate the introduction of prescribed assets on financial institutions’ funds to mobilise funds within a regulatory framework for socially productive investments (including housing, infrastructure for social and economic development and township and village economy) and job creation while considering the risk profiles of the affected entities”.  Intellidex’s Peter Attard Montalto says that while the idea is in line with the party’s Nasrec policy, the “more specific language on prescribed assets than expected” was a “surprise”.  He adds that this “should be a wake-up call for the local asset management community that the issue of prescribed assets is alive even if it will not be pushed forwards with the current leadership of National Treasury”.  Montalto cautions that the issue is current “because the hunt for solutions to Eskom will likely lead to a debate around the need to dictate that the asset management community and banks lend to Eskom to keep it afloat.”

  • Read Hilton Tarrant’s original report in full at Moneyweb

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