BizBriefing: Regulating ETFs, Coronation outperforms, Tito muses over SAA, Sarb warning

By Melani Nathan 

  • Regulations surrounding the reclassification of inward listed instruments have been ‘suspended with immediate effect’. Treasury released a statement saying that the review is limited to providing clarification on the scope of changes to the announcement related to the reclassification of inward listed instruments. In an interview with BizNews founder Alec Hogg, Magda Wierzycka and Magnus Heystek outlined the benefits the new regulation would bring to many South Africans by facilitating an increase in offshore diversification through domestic Exchange Traded Funds. Visit for more.
  • Coronation produced an impressive set of results for the year-ended 30 September, with revenue, headline earnings and dividends per share all seeing double-digit increases, despite assets under management remaining flat when compared to the prior period. In a year that will likely go down as the biggest stock market reversal in history, BizNews takes a critical look at the JSE’s 3 largest asset managers; NinetyOne, Quilter and Coronation to weigh up their value for investors. Visit BizNews for more insight.
  • South African Finance Minister Tito Mboweni again expressed his doubts about the need for a national airline less than a month after agreeing to find the cash for a R10.5bn bailout of the stricken carrier. In a series of late-night tweets, Mboweni asked his followers whether the country needs South African Airways or whether a private company should be given the chance to come in and fill the gap. Mboweni has long been an opponent of using state funds to bail out SAA, which has been in bankruptcy protection for almost a year and hasn’t flown a commercial flight since the start of South Africa’s coronavirus lockdown in March.
  • The deep ties that bind South Africa’s banks and insurers to the government is a key risk to the country’s financial stability, according to the central bank. “If the planned fiscal consolidation is unsuccessful, government could face debt distress with adverse implications for the broader economy,” the South African Reserve Bank said in a financial stability review report on Tuesday. “The interconnectedness between the financial sector and the sovereign has emerged as a major threat to financial stability in South Africa.” The National Treasury plans to reduce expenditure by about R300bn over the next three fiscal years as it targets a primary budget surplus in 2026, when debt is expected to peak at 95.3% of gross domestic product.
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