Regulatory Alerts2020-10-07
FSCA Draft Conduct Standard on Advertising, Marketing and Information Disclosure for Collective Investment Schemes
The Financial Sector Conduct Authority (FSCA) issued a draft Conduct Standard mandating specific advertising, marketing, and information disclosure requirements for Collective Investment Scheme managers and authorized agents. The regulation ensures fair investor treatment by requiring clear, predefined minimum disclosures prior to contract execution and on an ongoing basis. CIS managers must adhere to strict record-keeping and documentation lodgement rules, with the complete draft standard and supporting comment templates now available for public review on the FSCA website.
FSCA Communication 50 of 2020 (CIS) Publication of draft Conduct Standard - Advertising, Marketing and Information Disclosure Requirements for Collective Investment Schemes 7 October 2020
- PURPOSE The purpose of this Communication is to inform stakeholders that today the Financial Sector Conduct Authority (FSCA) published the following Conduct Standard and supporting documents in terms of section 106(1) of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017) (FSR Act): 1.1 Draft Conduct standard - Advertising, Marketing and Information Disclosure Requirements for Collective Investment Schemes: • Draft Conduct Standard; • Statement supporting the draft Conduct Standard; and • Comments Template.
- BACKGROUND 2.1 The draft Conduct Standard is aimed at ensuring that investors are treated fairly and that clear information is made available to them prior to signing any contracts and on a regular basis thereafter to ensure that investors are kept appropriately informed at all times. 2.2 The draft Conduct Standard sets out principles and rules-based requirements for CIS managers and their authorised agents in respect of disclosures and advertising pertaining to the CIS Managers and their portfolios. 2.3 The draft Conduct Standard places an obligation on CIS Managers to provide certain minimum disclosures which complies with predefined requirements, to existing and potential investors. 2.4 The draft Conduct Standard further sets out requirements pertaining to record keeping and the lodgement of all required documentation, advertisements and disclosures which are produced.
2 3. AVAILABILITY OF INFORMATION AND ENQUIRIES 3.1 The documents referred to in paragraph 1 is available on the FSCA’s website at www.fsca.co.za. 3.2 For more information regarding the draft Conduct Standard and/or this Communication please contact the Regulatory Framework Department of the Authority at Andile.Mjadu@fsca.co.za or Marius.DeJongh@fsca.co.za.
Kedibone Dikokwe Divisional Executive: Conduct of Business Supervision