Regulatory Alerts2018-03-26
Notice 573 of 2003: Suspension of Repurchase of Participatory Interests in Collective Investment Schemes in Securities
The Financial Services Board has prescribed the circumstances and conditions under which managers of collective investment schemes in securities may suspend the repurchase of participatory interests. Managers may only suspend repurchases when net daily offers exceed five percent of the portfolio's market value, provided they obtain trustee consent, segregate equivalent assets, and exclude offers made with ten business days' notice or valued at R50,000 or less. Upon suspension, managers must promptly notify affected investors, calculate daily prices based on segregated assets, and honor requests within twenty business days or transfer proportionate portfolio assets.
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