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Treasury and FSB releases draft regulations

Treasury and FSB releases draft regulations
15-04-14 / Staff Writer

Treasury and FSB releases draft regulations

In a statement released today, the National Treasury and the FSB said in 2012, South Africa, as a committed member of the G20, embarked on a process to enhance and expand the scope of regulation and oversight over hedge funds, following the Global Financial Crisis in 2008. This process culminated in the release for public comment, on 13 September 2012, of the Treasury and FSB proposed framework for regulating hedge funds in South Africa.

"The extensive comments received from industry participants, industry bodies, regulatory bodies and other interested parties were carefully considered by the Treasury and FSB, and laid a good foundation for these draft Regulations.Industry participants and bodies were also invited to provide input during the Regulations drafting process."

"The final Regulations will be effected through the existing Collective Investment Schemes Control Act, No. 45 of 2002 ("CISCA"), as a scheme declared by the Minister of Finance in terms of section 63 of CISCA. The declaration will also include those provisions of CISCA that will be applicable to hedge funds. These draft Regulations are issued for public comment by the Registrar of Collective Investment Schemes, as enabled and empowered by CISCA,"said the statement.

It also mentioned that the intention is to still finalize the Regulations by the second quarter of this year. However, this will be dependent on the nature and extent of the comments received, which could necessitate the finalization in the third quarter of 2014.

The draft Regulations are available on the official websites of the Financial Services Board www.fsb.co.za and National Treasury www.treasury.gov.za for public comment. Comments should be submitted by no later than Friday, 23 May 2014.

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