The Financial Services Board (FSB) of South Africa and AIMA SA have clarified The Financial Services Board (FSB) of South Africa and AIMA SA have clarified The letter outlined certain limitations relating to that approval in terms of the In addition, the FSB was re-affirming previous restrictions in terms of solicitation In conjunction with the South African chapter of AIMA, the FSB has now The approval granted to investment managers relates to their being approved to The management or sale of such product can still take place, subject to the As such products are unregulated, providers of hedge funds are prohibited from Industry surveys would not be inviting investment into any specific fund and The final point of this letter states that these managers may in no way make any In terms of the current regulatory regime, hedge funds fall outside the scope of It is therefore suggested that any hedge fund material should state such Joint Discussion Paper Issued A joint Discussion Paper has been issued in South Africa by the Financial It sets out the background to the local industry, considers international and local A number of issues raised in the Paper will be crucial in determining the The deadline for submissions is 30 April 2004. The discussion paper can be found at: http://www.fsb.co.za/Unit/Hedge%20Funds%20Joint%20Positioning%20Paper.pdf Â
the terms of a letter on hedge funds sent recently to approved investment
managers.
the terms of a letter on hedge funds sent recently to approved investment
managers.
Stock Exchanges Control Act, 1985 and The Financial Markets Control Act,
1989.
for business as well as ensuring that no investment managers make
misrepresentations in terms of the extent of such approval.
clarified the issues raised in that letter.
buy and sell securities on behalf of their clients. It does not provide them with
any form of approval, tacit or implied, either to manage hedge funds or to sell
hedge funds to individuals or pension fund investors.
restrictions mentioned below, but such management or sale is not approved or
regulated by the FSB unless the product is in contravention of the prohibition on
pooling in the Collective Investment Schemes Control Act, 2003. This will not
affect the marketing of existing regulated products.
soliciting for investment into these funds. Solicitation is marketing in any form or
inviting members of the public by any means to invest in a specific fund.
would not be construed as solicitation.
representation to clients that they are approved to manage hedge funds or
intimate that hedge funds are a regulated product in South Africa.
existing regulation and there is nothing preventing investment managers from
conducting the business of a hedge fund provided that they do not represent to
have been approved by the FSB to manage and/or solicit for investment into
hedge funds.
restrictions clearly on the face of such documentation and all participants in the
hedge fund industry must ensure that they act responsibly in their conduct.
Services Board, the Association of Collective Investments and AIMA’s South
Africa Chapter.
trends in hedge funds and then discusses plans for the regulation of hedge
funds
in South Africa.
direction that the regulatory process will take. In all, there are 20 questions
posed by the Paper. In order for the discussion process to be representative of
the various bodies that have vested interests in the planned regulation,
members of AIMA and other interested parties are asked to submit their
responses to the questions raised in this paper, in writing, to Kevin Shames,
Chairman of the AIMA South Africa Chapter. Kevin’s email address is:
[email protected].