Regulatory Alerts2018-03-26
CISCA Circular No. 18: Clarification on Money Market Instruments for Collective Investment Schemes
The Financial Services Board issued CISCA Circular No. 18 to clarify permissible money market instruments for collective investment schemes under Board Notice 80 of 2012. The circular expands eligibility to instruments issued by entities outside a qualifying corporate group, provided their capital is secured by a guarantee or banking liquidity line from a holding or subsidiary company meeting strict capital, reserve, and public reporting thresholds. The Registrar may amend the notice's wording for clarity and requires scheme managers and trustees to acknowledge receipt by 28 June 2013.
FINANCIAL SERVICES BOARD
Riverwalk Office Park Block B 41 Matroosberg Road Ashlea Gardens Extension 6
Pretoria South Africa 0081 PO Box 35655 Menlo Park Pretoria South Africa 0102
Tel +27 12 428 8000 Fax +27 12 346 6941 E-mail info@fsb.co.za
Toll free 0800 110443/0800 202087 website:www.fsb.co.za
| ENQUIRIES: | Marius De Jongh | D. DIALLING NO.: | 012 428 8090 |
|---|---|---|---|
| OUR REF: | CIRCULAR 18 | FAX: | 012 367 6533 |
| DATE: | 31 May 2013 | E-MAIL: | Marius.DeJongh@FSB.co.za |
CIRCULAR NO. 18. COMMUNICATION TO MANAGERS AND TRUSTEES OF COLLECTIVE INVESTMENT SCHEMES IN SECURITIES
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The purpose of this communication is to clarify the Registrar’s position in respect of paragraph 8(7)(b) of Board Notice 80 of 2012 (“the Notice”) to the Collective Investment Schemes Control Act.
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Paragraph 8(7)(b) of the Notice prescribes that a manager may include the following in a money market and short term debt portfolio:
A money market instrument which is issued or guaranteed by an institution:
(i) which is a subsidiary company in a group of companies with at least one listed company; and
(ii) whose holding company has capital and reserves of at least R100 000 000 and publishes and presents its annual accounts to the public; and
(iii) whose accounts are included in the consolidated accounts of the group of companies -
However where a money market instrument is issued by an entity (institution) that is not a subsidiary company in a group of companies as described above, but the capital of the money market instrument is supported by means of a guarantee or a banking liquidity line from a holding company or subsidiary company as described in (i) to (iii) above, then such money market instrument is also an instrument falling within the description of paragraph 8(7)(b) of the Notice.
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Should it be necessary the Registrar will consider amendments to the wording of paragraph 8(7)(b) of the Notice to provide regulatory clarity.
J.A BOYD
REGISTRAR OF COLLECTIVE INVESTMENT SCHEMES
Board Members: AM Sithole (Chairperson) H Wilton (Deputy Chairperson) Z Bassa JV Mogadime
Prof PJ Sutherland FE Groepe D Turpin HMM Ratshefola D Msomi I Momoniat O Makhubela (Alternate)
Executive Officer: DP Tshidi
SABS
ISO 9001
ACKNOWLEDGEMENT OF RECEIPT
I acknowledge receipt of a copy of CISCA Circular No. 18
Signature _________________________
Name of Manager _________________________
Date _________________________
Signature _________________________
Name of Trustee _________________________
Date _________________________
Please return on/before 28 June 2013 to:
Facsimile No. 012 346 6533
kabowa.modjadi@fsb.co.za