The Financial Sector Conduct Authority has published a draft notice of amendment of Board Notice 90 of 2014
On 6 March 2023, the Financial Sector Conduct Authority (FSCA), published a draft notice of amendment (draft Amendment Notice) to Board Notice 90 of 2014 (BN90 of 2014). BN90 of 2014 was issued under the Collective Investment Schemes Control Act, 2002 and sets out the securities, classes of securities, assets or classes of assets that may be included in a portfolio of a collective investment scheme in securities (CIS) as well as the manner, the limits, and conditions such securities or assets may be included.
The FSCA, in conjunction with the Prudential Authority, is undertaking a holistic review of BN90 of 2014 to ensure the requirements of BN90 of 2014 remain relevant and are aligned to international standards. The FSCA has meanwhile identified three aspects relating to BN90 of 2014 that it wishes to address as an interim step pending the finalisation of the holistic review of BN 90 of 2014.
These three aspects entail the following:
- allowing CIS managers to include actively managed exchange traded funds in its portfolios;
- allowing CIS managers to include hedge funds in their 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 CIS.
Submissions on the draft Amendment Notice are open and will close on 21 April 2023.
The draft Amendment Notice, together with a supporting statement, and comments template is available on the FSCA's website at https://www.fsca.co.za.
