COLLECTIVE INVESTMENT SCHEMES: COMMENT INVITED ON DRAFT AMENDMENT TO SECURITIES DETERMINATION, 2014

COLLECTIVE INVESTMENT SCHEMES: COMMENT INVITED ON DRAFT AMENDMENT TO SECURITIES DETERMINATION, 2014

• 07 March 2023
• Financial Sector
• SA Legal Academy

The Financial Sector Conduct Authority (FSCA) has called for input by 21 April 2023 on proposed amendments to a determination made in August 2014 regarding:

• the classes of securities, assets or classes of assets that may be included in a collective investment scheme (CIS) portfolio in securities, and
• applicable limits and conditions.

According to an FSCA communication on the amendments envisaged, this would be an interim measure pending the completion of a more ‘holistic review’ of the 2014 determination. With that in mind, it is proposed that:

• CIS managers be allowed to include:
  • actively managed exchange traded funds in their portfolios, and
  • hedge funds that are approved to be managed in accordance with the Pension Funds Act Regulation 28, and that
  • where an underlying portfolio is a foreign collective investment scheme, the 20% permissible maximum exposure should be increased to 45%.

The following documents provide more details on what is proposed:

• FSCA communication
• draft amendments
• statement of need

Comments should be made using this template.

Published by SA Legal Academy Policy Watch

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