Regulatory Alerts2018-03-26
Clarification on Investment by Collective Investment Schemes in Securities into Hedge Fund Collective Investment Schemes
The South African Financial Services Board clarifies that collective investment schemes in securities are prohibited from investing in hedge fund collective investment schemes. Although hedge funds were formally declared as regulated collective investment schemes in April 2015, their participatory interests remain excluded from the allowable securities definition under Board Notice 90 of 2014. Consequently, scheme managers and trustees must ensure that securities-based portfolios do not allocate capital to either retail or qualified investor hedge funds.
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