Business Day published an article on September 27 under the headline “Asisa will not back BEE targets for assets”. The article confuses the concept of “prescribed asset” with  prescribed or compulsory allocation of assets to black asset managers. This misunderstanding — probably as a result of the sequence of responses to questions from the media — created the wrong impression that Asisa and the Financial Sector Transformation Council are opposed to giving black asset managers greater access to the market. I would therefore like to set the record straight. When the term “prescribed assets” is used, it is understood to refer to the government forcing the savings industry to buy government stock as well as bonds issued by state-owned enterprises (SOEs). Asisa will not back “prescribed assets” as this does not solve any problems for the country. It did not work when introduced by the apartheid government and would have equally devastating effects for the country should it be introduced...

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