Regulatory Alerts2023-02-15
FSCA Communication 4 of 2023 (CIS) Exemption for Collective Investment Scheme Managers
The Financial Sector Conduct Authority (FSCA) has issued a final exemption relieving Collective Investment Scheme managers from specific prior investor consent requirements under section 99(1) of the Collective Investment Scheme Control Act when amalgamating funds. This regulatory change addresses industry interpretation difficulties and prevents costly, ineffective ballots by allowing targeted portfolio investors to object directly rather than participating in the initial amalgamation vote. The exemption applies subject to prescribed conditions and officially replaces the FSCA's February 2023 draft communication, thereby streamlining fund consolidation processes while safeguarding investor rights.
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