Regulatory Alerts2018-03-26
CISCA Circular No 12: Clarification on Money Market Portfolio Investment Limits
The South African Financial Services Board issued CISCA Circular No 12 to clarify regulatory investment limits for managers of collective investment schemes in securities. The circular mandates that participatory interests in underlying money market portfolios must not exceed twenty percent of the aggregate market value of the primary portfolio, directly restricting how managers classify these holdings as liquid assets under Board Notice 1503 of 2005. Any allocation surpassing this threshold constitutes a regulatory breach, requiring managers to immediately adjust their portfolio compositions to comply with paragraph 3(4)(a) of the Notice.
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