Regulatory Alerts2019-10-04
FSCA Communication 1 of 2019: Draft Exemption for CIS Managers and Auditors
The Financial Sector Conduct Authority published a draft general exemption notice for public comment until 29 November 2019, which exempts collective investment scheme managers and auditors from the statutory requirement to apply historically accepted accounting practice. The notice permits these entities to adopt International Financial Reporting Standards and International Auditing Standards, introducing a fit-for-purpose framework that applies full standards to the scheme itself while allowing limited application for individual portfolios. This interim measure resolves long-standing regulatory uncertainty and addresses international feedback regarding South Africa's accounting standard requirements for investment institutions.
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