Regulatory Alerts2018-03-26
CISCA Circular No. 19: Guidance on CIS Accounting, ETF Taxation, and Commodity-Tracking Limits
The South African Financial Services Board issued this circular to suspend pending capital adequacy and accounting standard revisions from Circular No. 17 while clarifying that special dividends for exchange-traded funds are exempt from dividends tax under section 64F(k). The Registrar confirmed the NewGold Platinum ETF is permissible as a platinum-tracking debenture, provided its direct exposure to Absa Bank is aggregated with the bank’s overall exposure limits. A prudential 10 percent portfolio cap on commodity-tracking instruments will be formally codified through amendments to Board Notice 80 of 2012 to align with pension fund investment restrictions.
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