Regulatory Alerts2024-03-06
FSCA Communication 8 of 2024 on Re-investment of Income Distributions in Collective Investment Scheme Portfolios
The Financial Sector Conduct Authority requires Collective Investment Scheme managers to treat the re-investment of income distributions as active purchases rather than market movements when calculating portfolio exposure limits under Board Notice 90 of 2014. Consequently, portfolios exceeding prescribed limits due to dividend re-investment cannot rely on the standard market fluctuation exemptions and must implement adequate controls to prevent breaches. The regulator will actively monitor compliance and may issue directives or impose administrative penalties on managers that fail to adhere to these revised limit calculations.
Share