Regulatory Alerts2020-07-24
FSCA Exemption of Collective Investment Scheme Managers from Section 44(2) and (3) of the CISCA
The Financial Sector Conduct Authority has issued a general exemption relieving collective investment scheme managers from the statutory requirement that licensed stockbrokers determine fair market prices for securities under sections 44(2) and (3) of the CISCA. This exemption permits managers to engage an appropriately skilled person acceptable to the trustee or an independent verifier, resolving practical conflicts of interest and enabling accurate pricing for both listed and unlisted securities. Incorporated from a previously consulted draft Conduct Standard, the exemption complements existing valuation regulations and is now publicly available on the FSCA website without further consultation.
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