FSCA Communication 8 of 2023 Regarding Collective Investment Schemes

FSCA COMMUNICATION 8 OF 2023 (CIS)
NOTICE OF PUBLICATION: NOTICE REGARDING THE PUBLICATION OF DRAFT NOTICE OF AMENDMENT OF BOARD NOTICE 90 OF 2014

1. PURPOSE
   The purpose of this Communication is to inform stakeholders that today the Financial Sector Conduct Authority (FSCA) published the following documents on its website :
   1.1 Notice regarding the Publication of Draft Notice of Amendment of Board Notice 90
   of 2014 (draft Amendment Notice);
   1.2 Statement supporting the draft Amendment Notice (the Statement); and
   1.3 Comments Template for draft Amendment Notice.
2. BACKGROUND AND CONTEXT
   2.1 The FSCA, in conjunction with the Prudential Authority, is currently busy with a
   holistic review of the Determination of securities, classes of securities, assets or classes of assets that may be included in a portfolio of a collective investment scheme in securities and the manner in which and the limits and conditions subject to which securities or assets may be so included, published under Board Notice 90 of 2014 in Government Gazette No. 37895 on 8 August 2014 (BN 90).
   2.2 However The holistic review of BN90 will take time and in the interim the FSCA
   has identified three aspects relating to BN90 that it wishes to address as an interim step pending the finalisation of the holitic review of BN 90.
   2.3 These three aspects entail the following:

• Alllowing CIS Managers to include actively managed exchange traded funds in
  its portfolios;
• alllowing CIS Managers to include hedge funds in its portfolios that are
  approved to be managed in accordance with the Pension Funds Act Regulation 28; and
• increasing the current 20% allowed maxim exposure in an underling portfolio
  to 45%, where the underlying portfolio is a foreign collective investment scheme.
  2.4 Further detail regarding these proposals, the need therefore and the expected
  impact of the proposals is set out in the Statement.

3. INVITATION TO COMMENT ON DRAFT EXEMPTION NOTICE
   3.1 The documents referred to in paragraph 1 are available on the FSCA’s website at
   www.fsca.co.za.

3.2 Interested parties are invited to submit comments on the draft Exemption Notice
on the Comments Template published herewith, in Word format, on or before 21 April 2023 to FSCA.RFDstandards@fsca.co.za.
4. CONTACT
For further information regarding this Communication please contact the Regulatory Framework Department of the FSCA by emailing Marianne van Rooyen at marianne.vanrooyen@fsca.co.za. UNATHI KAMLANA COMMISSIONER FINANCIAL SECTOR CONDUCT AUTHORITY Date of publication: 6 MARCH 2023