Regulatory Alerts2018-03-26
Notice 778 of 2011: Determination of Limits and Conditions for Third Party Named Portfolios of Collective Investment Schemes
The Financial Services Board issued Notice 778 of 2011 to regulate the "white labelling" practice by establishing strict limits and conditions for third party named portfolios under the Collective Investment Schemes Control Act. The notice categorizes these arrangements into incubator portfolios, granting emerging providers up to three years to qualify as registered managers, and co-named portfolios, which require permanent joint branding with the scheme manager. Managers must enforce mandatory investor disclosure, execute detailed service agreements, cap incubator portfolios at 30 percent of their total offerings, and ensure all portfolios reach a minimum asset threshold of R50 million within three years or face mandatory winding up or amalgamation.