Attached is a piece of legislature that is supposed to change the economic environment of Swaziland. What perplexes me is business has not been able to understand what it means. We at the CBS dealing desk are gearing to mop up most of this excess liquidity because Swazis have failed to come up with strategies on how to put into use these funds. Finance is the make or break it in entrepreneurship but why are we failing to stretch our minds and become innovative just like SA whites and few blacks who adopted the US approach of getting on board fund mangers creating instant wealth for their families.
If you cant manage your emotions then you cant manage money-Warren Buffet
Regards
Gordon Bennett Dealer,Financial Markets Cell: +268 602 4915 Work: +268 408 2145 Fax: +268 404 8530 Schedule 3 INVESTMENT CRITERIA FOR LONG TERM INSURANCE BUSINESS Every long-term insurer shall ensure that at least 30 % of its assets at market value are invested over a period of 3 years in increments of 10% per year, in the Kingdom of Swaziland as follows – 10% with effect from 1st November, 2007; 20% with effect from 1st November, 2008; and 30%.with effect from 1st November 2009. Every insurer shall ensure that the assets of the company shall be invested in a manner which is in accordance with the following guidelines - Item Categories or kinds of assets Maximum percentage of aggregate market value of total assets of insurer 1. Deposits and balances with a registered deposit-taking institution including negotiable deposits, and money market instruments in terms of which such an institution is liable, paid-up shares of a mutual building society 50% (i) Per bank 10% (ii) Per mutual building society 30% 2. Bills, bonds and securities issued or guaranteed by and loans to or guaranteed by - 100% (i) a local authority authorised by laws to levy rates upon immovable property - Per local authority 5% (ii) Swaziland Water Services Corporation 30% (iii) Swaziland Electricity Board 30% (iv) Swaziland Posts and Telecommunications Corporation 30% (v) Any parastatal in which the government has a major shareholding 10% (vi) Government Bonds 100% (vii) Central Bank – treasury bills (long-term) 40% 4. Immovable Property secured by mortgage bonds 15% 5. Units in unit trust schemes in property shares and shares in, loans to and debentures, both convertible and non-convertible, of property companies: 30% 6. Investment in a single property or property development project 40% 7. Preference and ordinary shares in companies excluding shares in property companies. Convertible debentures, whether voluntarily or compulsorily convertible and units in equity unit trust schemes whose objective is to invest their assets mainly in shares. These investments are subject to the following limitations: 75% (i) Unlisted shares, unlisted convertible debentures and shares and convertible debentures listed in the Development Capital Sector 5% (ii) Shares and convertible debentures in a single listed company other than the Development Capital Sector: (a) With a market capitalisation of E150 million or less 10% (b) With a market capitalisation of more than E150 million 15% 8. Listed and unlisted debentures, units in a unit trust scheme with the objective to invest in income generating securities: 25% 9. Any other assets not referred to in this Schedule excluding money in hand approved by the Registrar 2%
INVESTMENT CRITERIA FOR SHORT TERM INSURANCE BUSINESS Every short-term insurer shall ensure that at least 30 % of its assets at market value are invested over a period of 3 years in increments of 10% per year, in the Kingdom of Swaziland as follows – 10% with effect from 1st November, 2007; 20% with effect from 1st November, 2008; and 30%.with effect from 1st November 2009. The insurer shall ensure that the assets of the company are invested in a manner, which is in accordance with the following guidelines. Item Categories or kinds of assets Maximum percentage of aggregate market value of total assets of insurer 1. Deposits and balances with a registered deposit-taking institution including negotiable deposits, and money market instruments in terms of which such an institution is liable, paid-up shares of a mutual building society 100% (i) Per bank 20% (ii) Per mutual building society 20% 2. Bills, bonds and securities issued or guaranteed by and loans to or guaranteed by - 100% (i) local authorities authorised by laws to levy rates upon immovable property 5% (ii) Swaziland Water Services Corporation 30% (iii) Swaziland Electricity Board 30% (iv) Swaziland Posts and Telecommunication Corporation 30% (v) Any parastatal in which the government has a major shareholding 10% 3. Immovable property secured by mortgage bonds 10% 4. Units in unit trust schemes in property shares and shares in, loans to and debentures, both convertible and non-convertible, of property companies: 35% 5. Investment in a single property or property development project 3% 6. Preference shares in companies excluding shares in property companies. Convertible debentures, whether voluntarily or compulsorily convertible and units in equity unit trust schemes whose objective is to invest their assets mainly in shares. These investments are subject to the following limitations:
40% (i) Unlisted shares, unlisted convertible debentures and shares and convertible debentures listed in the Development Capital Sector 5% (ii) Shares and convertible debentures in a single listed company other than the Development Capital Sector: (a) With a market capitalisation of E150 million or less 5% (b) With a market capitalisation of more than E150 million 10% 7. Ordinary shares in companies excluding shares in property companies. 20% 8. Listed and unlisted debentures, units in a unit trust scheme with the objective to invest in income generating securities: 25% (i) Claim against any single company 5% 9. Any other assets not referred to in this Annexure, excluding money in hand approved by the Registrar 2%
Schedule 4 APPROVED COUNTRIES For purpose of regulation 10, the following countries have been approved: Country
Australia Austria Belgium Botswana Canada Denmark France Germany Greece Holland Ireland Italy Japan Kingdom of Swaziland Lesotho Mauritius Namibia New Zealand Norway Portugal Republic of South Africa Spain Sweden Switzerland Taiwan United Kingdom United States of America
3 comments:
Hello all,
We are definately off to a great start. Keep the comments coming.
Sisi
d
Attached is a piece of legislature that is supposed to change the economic environment of Swaziland. What perplexes me is business has not been able to understand what it means. We at the CBS dealing desk are gearing to mop up most of this excess liquidity because Swazis have failed to come up with strategies on how to put into use these funds. Finance is the make or break it in entrepreneurship but why are we failing to stretch our minds and become innovative just like SA whites and few blacks who adopted the US approach of getting on board fund mangers creating instant wealth for their families.
If you cant manage your emotions then you cant manage money-Warren Buffet
Regards
Gordon Bennett
Dealer,Financial Markets
Cell: +268 602 4915
Work: +268 408 2145
Fax: +268 404 8530
Schedule 3
INVESTMENT CRITERIA FOR LONG TERM INSURANCE BUSINESS
Every long-term insurer shall ensure that at least 30 % of its assets at market value are invested over a period of 3 years in increments of 10% per year, in the Kingdom of Swaziland as follows –
10% with effect from 1st November, 2007;
20% with effect from 1st November, 2008; and
30%.with effect from 1st November 2009.
Every insurer shall ensure that the assets of the company shall be invested in a manner which is in accordance with the following guidelines -
Item Categories or kinds of assets Maximum percentage of aggregate market value of total assets of insurer
1. Deposits and balances with a registered deposit-taking institution including negotiable deposits, and money market instruments in terms of which such an institution is liable, paid-up shares of a mutual building society 50%
(i) Per bank 10%
(ii) Per mutual building society 30%
2. Bills, bonds and securities issued or guaranteed by and loans to or guaranteed by - 100%
(i) a local authority authorised by laws to levy rates upon immovable property - Per local authority 5%
(ii) Swaziland Water Services Corporation 30%
(iii) Swaziland Electricity Board 30%
(iv) Swaziland Posts and Telecommunications Corporation 30%
(v) Any parastatal in which the government has a major shareholding 10%
(vi) Government Bonds 100%
(vii) Central Bank – treasury bills (long-term) 40%
4. Immovable Property secured by mortgage bonds 15%
5. Units in unit trust schemes in property shares and shares in, loans to and debentures, both convertible and non-convertible, of property companies: 30%
6. Investment in a single property or property development project 40%
7. Preference and ordinary shares in companies excluding shares in property companies. Convertible debentures, whether voluntarily or compulsorily convertible and units in equity unit trust schemes whose objective is to invest their assets mainly in shares. These investments are subject to the following limitations: 75%
(i) Unlisted shares, unlisted convertible debentures and shares and convertible debentures listed in the Development Capital Sector 5%
(ii) Shares and convertible debentures in a single listed company other than the Development Capital Sector:
(a) With a market capitalisation of E150 million or less 10%
(b) With a market capitalisation of more than E150 million 15%
8. Listed and unlisted debentures, units in a unit trust scheme with the objective to invest in income generating securities: 25%
9. Any other assets not referred to in this Schedule excluding money in hand approved by the Registrar 2%
INVESTMENT CRITERIA FOR SHORT TERM INSURANCE BUSINESS
Every short-term insurer shall ensure that at least 30 % of its assets at market value are invested over a period of 3 years in increments of 10% per year, in the Kingdom of Swaziland as follows –
10% with effect from 1st November, 2007;
20% with effect from 1st November, 2008; and
30%.with effect from 1st November 2009.
The insurer shall ensure that the assets of the company are invested in a manner, which is in accordance with the following guidelines.
Item Categories or kinds of assets Maximum percentage of aggregate market value of total assets of insurer
1. Deposits and balances with a registered deposit-taking institution including negotiable deposits, and money market instruments in terms of which such an institution is liable, paid-up shares of a mutual building society 100%
(i) Per bank 20%
(ii) Per mutual building society 20%
2. Bills, bonds and securities issued or guaranteed by and loans to or guaranteed by - 100%
(i) local authorities authorised by laws to levy rates upon immovable property 5%
(ii) Swaziland Water Services Corporation 30%
(iii) Swaziland Electricity Board 30%
(iv) Swaziland Posts and Telecommunication Corporation 30%
(v) Any parastatal in which the government has a major shareholding 10%
3. Immovable property secured by mortgage bonds 10%
4. Units in unit trust schemes in property shares and shares in, loans to and debentures, both convertible and non-convertible, of property companies: 35%
5. Investment in a single property or property development project 3%
6. Preference shares in companies excluding shares in property companies. Convertible debentures, whether voluntarily or compulsorily convertible and units in equity unit trust schemes whose objective is to invest their assets mainly in shares. These investments are subject to the following limitations:
40%
(i) Unlisted shares, unlisted convertible debentures and shares and convertible debentures listed in the Development Capital Sector 5%
(ii) Shares and convertible debentures in a single listed company other than the Development Capital Sector:
(a) With a market capitalisation of E150 million or less 5%
(b) With a market capitalisation of more than E150 million 10%
7. Ordinary shares in companies excluding shares in property companies. 20%
8. Listed and unlisted debentures, units in a unit trust scheme with the objective to invest in income generating securities: 25%
(i) Claim against any single company 5%
9. Any other assets not referred to in this Annexure, excluding money in hand approved by the Registrar 2%
Schedule 4
APPROVED COUNTRIES
For purpose of regulation 10, the following countries have been approved:
Country
Australia
Austria
Belgium
Botswana
Canada
Denmark
France
Germany
Greece
Holland
Ireland
Italy
Japan
Kingdom of Swaziland
Lesotho
Mauritius
Namibia
New Zealand
Norway
Portugal
Republic of South Africa
Spain
Sweden
Switzerland
Taiwan
United Kingdom
United States of America
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