Regulatory Alerts2018-03-26
CISCA Circular No 11: Dividend Income Portfolios
The South African Financial Services Board issued Circular No 11 to mandate compliance measures for managers and trustees of collective investment schemes operating dividend income portfolios amid an ongoing regulatory investigation. Applicants for new portfolios and managers of existing schemes must submit exit strategies, distribute cautionary warnings regarding potential portfolio closure and adverse tax consequences, and notify investors of the investigation by January 2010. The circular warns that unresolved structural and tax uncertainties may lead to legislative amendments or forced closures, with any contraventions of the Collective Investment Schemes Control Act referred to the Board’s Enforcement Committee.
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