Guideline - Application for Approval of Foreign Collective Investment Schemes

A guideline on an application to the FSB for approval of Foreign Collective Investment Schemes and downloads to supporting documentation.

Foreign Collective Investment Schemes carried on outside, but promoted in the Republic of South Africa have to be approved in terms of part VIII of the Collective Investment Schemes Control Act No 45 of 2002.

Click here for a copy of the section: CISCA PART VIII

In addition to the requirements under the Act, conditions for the approval are out in Board Notice 579 of 2003 as published in Government Gazette No. 24984 of 28 February 2003.

Click here for a copy of the Gazette: 1. Conditions in respect of a collective investment

The conditions call for a host of documents that need to accompany an application for approval and the table below serves as a guideline to applicants. Where appropriate, a link has been established to a sample document that can be downloaded. The table is divided to show the requirements for different scheme structures.

A. REGISTRATION OF THE FOREIGN SCHEME

1. Information / documentation required from the Foreign Scheme to accompany the application for approval to the South African regulator, Financial Services Board (FSB):

OEIC / SICAV

  1. Certificate of Incorporation
  2. Prospectus
  3. Memorandum & Articles of Association
  4. Representative Agreement/Office
  5. Latest Financial Statements
  6. Questionnaire to Applicants

Click here for a sample: Generic Questionnaire

  1. Schedule of Similarities & Differences (tabular format)

Click for sample: Schedule of Similarities & Differences

  1. Letter from Foreign Regulator that Scheme is approved by them
  2. Diagram of Scheme Structure incorporating all entities
  3. Fees payable to the FSB

PORTFOLIO / MUTUAL FUND

  1. Trust Deed
  2. Scheme Particulars
  3. Supplemental Trust Deed(s)
  4. Representative Agreement/Office
  5. Latest Financial Statements
  6. Questionnaire to Applicants

Click here for a sample: Generic Questionnaire

  1. Schedule of Similarities & Differences (tabular format)

Click for sample: Schedule of Similarities & Differences

  1. Letter from Foreign Regulator that Scheme is approved by them
  2. Diagram of Scheme Structure incorporating all entities
  3. Fees payable to the FSB

2. Information / documentation required by the Local Manager (as appointed in terms of the Representative Agreement) and/or the Representative Office:

OEIC / SICAV

  1. Special resolution for Local Manager to change Memorandum & Articles
  2. Letter of Undertaking by the Local Manager

Click here for sample: Generic Letter of Undertaking by Manco

  1. Letter of Motivation for the approval of the foreign scheme by FSB, incorporating detailed explanation on the important issues (refer to attached document on Motivation Issues)

Click here for copy: Motivational Issues, May 2002

  1. Form CM26 Special Resolution approved by the Registrar of Companies confirming that the Local Manager has amended the main business and main object thereof in the Memorandum & Articles of Association

Click here for sample: Form CM26 Wording

PORTFOLIO / MUTUAL FUND

  1. Special resolution for Local Manager to change Memorandum & Articles
  2. Letter of Undertaking by the Local Manager

Click here for sample: Generic Letter of Undertaking by Manco

  1. Letter of Motivation for the approval of the foreign scheme by FSB, incorporating detailed explanation on the important issues (refer to attached document on Motivation Issues)

Click here for copy: Motivational Issues, May 2002

  1. Form CM26 Special Resolution approved by the Registrar of Companies confirming that the Local Manager has amended the main business and main object thereof in the Memorandum & Articles of Association

Click here for sample: Form CM26 Wording

3. General: to be supplied by the Local Manager (as appointed in terms of the Representative Agreement) and/or the Representative Office.

OEIC / SICAV

Letter of Application to Association for Savings & Investment SA (ASISA) incorporating the following:

  1. All marketing material to be supplied to ASISA, incorporating the mandatory disclosures.

Click here for Code of Practice Relating to Advertising of Collective Investments in Securities

  1. Prospectus

PORTFOLIO / MUTUAL FUND

Letter of Application to Association for Savings & Investment SA (ASISA) incorporating the following:

  1. All marketing material to be supplied to ASISA, incorporating the mandatory disclosures.

Click here for Code of Practice Relating to Advertising of Collective Investments in Securities

  1. Scheme Particulars and Supplemental Trust Deeds

B. REGISTRATION OF ADDITIONAL PORTFOLIOS

Information / documentation required from the Foreign Scheme (to be submitted to the FSB under cover of a letter from the Local Manager (appointed in terms of the Representative Agreement), or Representative Office):

OEIC / SICAV

  1. Letter addressed to the FSB dealing with:

    i) Motivation for the additional portfolio
    ii) Breakdown of the particulars of the portfolio
    iii) Supplemental scheme particulars

Click here for sample: Supplemental Scheme Particulars

  1. Fee payable to FSB.
  2. Letter from the foreign regulator addressed to the FSB approving the additional portfolio
  3. Prospectus

PORTFOLIO / MUTUAL FUND

  1. Letter addressed to the FSB dealing with :

    i) Motivation for the additional portfolio
    ii) Breakdown of the particulars of the portfolio
    iii)Supplemental scheme particulars

Click here for sample: Supplemental Scheme Particulars

  1. Fee payable to FSB.
  2. Letter from foreign regulator addressed to the FSB approving the additional portfolio
  3. Supplemental Trust Deed

C. AMENDMENT TO PROSPECTUS / SCHEME PARTICULARS / MEMORANDUM & ARTICLES OF OEIC

Information / documentation required from the Foreign Scheme, to be submitted to the FSB under cover of a letter from the Local Manager (appointed in terms of the Representative Agreement) or Representative Office:

OEIC / SICAV

  1. Motivation for the amendment to the prospectus/scheme particulars
  2. A copy of the scheme particulars and prospectus, as amended
  3. Relevant documentation recording the approval by the Foreign Regulator
  4. Fee payable to FSB

PORTFOLIO / MUTUAL FUND

  1. Motivation for the amendment to the scheme particulars/supplemental trust deeds
  2. A copy of the supplemental scheme particulars/supplemental trust deeds, as amended
  3. Relevant documentation recording the approval by the Foreign Regulator
  4. Fee payable to FSB

D. SCHEDULE OF FEES

[Refer to Notice 569 on FSB website: www.fsb.co.za]