Regulatory Alerts2018-03-26
CISCA Circular No. 15: Creation of Unpaid Participatory Interests
The Financial Services Board’s Registrar of Collective Investment Schemes mandates that scheme managers must obtain full payment or satisfactory proof of payment before creating participatory interests for investors. This directive strictly prohibits issuing units based solely on investor promises to pay later, as such practices directly contravene Section 95(1) of the Collective Investment Schemes Control Act. Non-compliant managers face immediate regulatory enforcement, and the Registrar clarifies that standard banking processing delays do not exempt firms from this upfront verification requirement.
Share