Regulatory Alerts2024-02-23
FSCA Communication 5 of 2024 (CIS): Exemption of CIS Managers from Certain BN 52 Requirements
The Financial Sector Conduct Authority (FSCA) has published FSCA CIS Notice 2 of 2024, which exempts managers of Collective Investment Schemes (CIS) from specific requirements of Board Notice 52 (BN 52). This exemption primarily addresses the 75% investment limit in BN 52, which inadvertently prevented feeder retail hedge funds from investing 100% in a single offshore hedge fund, a common international practice. The FSCA intends this change to close a regulatory gap, expand investor options, and enable managers to broaden their investment offerings, ultimately benefiting investors and the public.
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