Alec Hogg: Dirty secret behind SARB backpedal on RAs

The big story of the past week was the backtracking by National Treasury and the SA Reserve Bank on an exchange control regulation which provided a much needed breakthrough for embattled South African savers. In a nutshell, the highly detailed and obviously long-considered new regulations removed a 30% cap on the foreign investment component of retirement annuities. An official circular announced the termination of a destructive situation where 70% of all money invested into RAs had to go into a narrow pool of poorly performing local assets..Also read: Alec Hogg: A watershed moment for SA as the tax base penny finally drops.The SARB's decision, referenced by Tito Mboweni in last month's Mini-Budget, was warmly welcomed by independent voices, including BizNews. We oppose exchange control in any form, not just because it is a hangover from apartheid, a government regulation implemented to prevent capital outflows after the Sharpeville Massacre in 1960. Excon kept apartheid on life support for decades and continues to shield perpetrators from taking responsibility for destructive political policies..So we were among those who congratulated SARB on a decision which, in essence, removed a hefty tax on retirement savers – one whose impact was so negative it has played a role in the decisions of many SA financial emigrants. But on Monday Pretoria backtracked and suspended its own new rules. Insiders say this was due to pressure from vested interests and is the first step to dropping the change entirely..___STEADY_PAYWALL___.Also read: Alec Hogg: Revolutionary change on SA retirement funding will slow financial emigration.Yesterday I asked Sygnia's Magda Wierzycka (above) and Brenthurst's Magnus Heystek what they believe was behind the backpedalling. Their response: Intense lobbying by big asset management companies whose executives stand to forego billions in bonuses. Have a listen to the full interview by clicking here. A warning though: it ain't pretty….* PS If you are receiving this daily missive second hand, why not consider supporting our independent perspective by subscribing to Biznews Premium – it costs just £4.99 a month, which includes a full subscription to the Wall Street Journal. More info here: https://www.biznews.com/premium-signup.TO LISTEN….Latest audio on BizNews Radio.…..(click on the link to access).Inside Investing – Big company lobbying killed RA breakthroughUnpacking travel expenses scandal with the investigator Leon Schreiber Biznews share portfolio update – the podcast SA authorities back-pedal on effectively dropping exchange control on RAs.The Great Covid Debate.TO WATCH…On the BizNews TV channel on YouTube….Making share while Rand shines – Orbvest's 30th US property opens for investment BizBriefing: PIC gives Eskom a helping handThe Biznews Global share portfolio – November updateRational Radio: The Great Covid-19 Debate.DOWNLOAD THE FREE BIZNEWS.COM APPClick on the links below to download your own Biznews.com App:.Apple: https://apps.apple.com/za/app/biznews-com/id1517392839.Android: https://play.google.com/store/apps/details?id=com.goodbarber.biznews&hl=en

Alec Hogg: Dirty secret behind SARB backpedal on RAs

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