Regulatory Alerts2018-03-26
Notice 2074 of 2003: Capital Requirements for Managers of Collective Investment Schemes in Property
The Financial Services Board mandates specific capital maintenance requirements for managers of collective investment schemes in property under the Collective Investment Schemes Control Act, 2002. Managers must calculate eligible capital minus adjustments for impaired and non-liquid assets to determine adjusted liquid capital, which must cover a basic capital floor of at least R600,000 or thirteen weeks of fixed costs, plus portfolio-specific seed and position risk capital. The regulation provides detailed methodologies for computing fixed costs, requires monthly capital position submissions within fourteen business days, and repeals Notice 575 of 2003 effective 1 August 2003.
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