Regulatory Alerts2018-03-26
CISCA Circular No 4: Amendments and Clarifications to Notice 1503 of 2005
The Financial Services Board issued CISCA Circular No 4 to amend and clarify provisions of Notice 1503 of 2005 governing collective investment schemes in securities. The circular expands the definition of liquid assets, aligns precious metals portfolio concentration limits with JSE free float weighting, and establishes compliance guidelines for exchange-traded funds, non-equity securities, forward swaps, and quarterly valuations. Managers must submit comments on the proposed amendments within thirty days, ensure all derivative exposures are fully covered, and formally acknowledge receipt, as the regulator emphasizes strict enforcement against non-compliance.
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