Protection against creditors
The proceeds from a RA are specifically excluded from your estate in terms of legislation to protect your savings against any creditors. Only an amount up to R3000 can be pledged to any creditors. Pension assets are deemed not to form part of the insolvent estate. Pension benefits are deemed not to form part of the assets of the deceased estate. The funds from your RA will be paid to your estate.
Regulation 28 of the Pension Funds Act places restrictions on the manner in which the RA fund’s assets may be invested which avoids an investor taking much risk with their retirement investment.
What if something happens to EasyEquities?
The EasyEquities RA fund is a legal entity in its own right and has no financial obligation to First World Trader. The liquidation of FWT will not have a direct financial impact on your EasyEquities RA and your EasyEquities RA will not be listed as a creditor of FWT. Your RA will continue to operate as a retirement annuity fund in the event of the liquidation of FWT.