Regulatory Alerts2018-03-26
Notice 2075 of 2003: Capital Requirements for Managers of Collective Investment Schemes in Participation Bonds
The Financial Services Board issued Notice 2075 of 2003 to establish mandatory capital maintenance requirements for managers of collective investment schemes in participation bonds under the Collective Investment Schemes Control Act, 2002. Managers must calculate their adjusted liquid capital by aggregating eligible equity and subordinated liabilities, deducting impaired and non-liquid assets, and maintaining a minimum threshold comprising a basic capital floor, portfolio-specific seed capital, and position risk capital. The notice prescribes detailed rules for computing fixed costs, mandates monthly capital position submissions within fourteen business days, repeals Notice 578 of 2003, and takes effect on 1 August 2003.
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