Andrew Canter: Prescribed Assets a blunt tool to shield bad Governments

As we hear in this forthright interview with Andrew Canter, the ANC's proposal to re-introduce Prescribed Asset Requirements is only being advanced because the Government is not prepared to apply the correct economic medicine. The chief investment office of Futuregrowth explains that this is a blunt tool which taxes pensioners to protect those making poor economic policy decisions. He attacks the premise that such regulations promote development by unlocking domestic capital for capital projects – the popular refrain of those who promote the concept. Canter was interviewed in this week's episode of Rational Radio. – Alec Hogg

Andrew Canter – the chief investment officer of Futuregrowth joins us. Andrew, I believe you had a wonderful debate with Mark Barnes – ex CEO of the Post Office and Capital Alliance – on prescribed assets. Mark believing South Africa should have them, you took an opposing view. For those who don't know what prescribed assets are – I recall as a young journalist that they existed in South Africa under the apartheid regulation – up to 53% of pension fund assets had to go into these things called prescribed assets. What exactly are they?

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