Nautilus Managed Account Platform, a wholly owned subsidiary of the Johannesburg Stock Exchange, has retained Societe Generale Securities Services (SGSS) to provide trustee services for its management company (MANCO) in South Africa.

The appointment follows the decision by the Financial Services Board (FSB) in South Africa to extend the scope of funds regulated by the Collective Investment Scheme Control Act (CISCA) to include hedge funds.

The CISCA regulates two types of hedge funds: Qualified Investor Funds (QIFs) and Retail Hedge Funds (RFs).

MANCOs seeking to offer hedge funds to the public are required to register with the FSB and appoint a trustee, which now places the oversight and supervision of institutional and retail hedge funds under the jurisdiction of the FSB.

Nautilus has received approval of their MANCO license from the FSB.

Services provided within the mandate include trustee services, including position-keeping of assets, daily control of liquidity flows and obligatory inspections and audits in South Africa.

Jean-Louis Bernardo, Country Head of South Africa for SGSS and Managing Director of the Societe Generale Johannesburg Branch, said this deal clearly highlights the product diversification engaged by SGSS in South Africa.

“We are actively working to enlarge our asset servicing capacity beyond collective investment schemes (CIS) and in line with evolving regulation to include specific asset classes such as Qualified Investors Hedge Funds. This mandate also reflects SGSS’ recognized expertise as a global player in servicing alternative funds,” he told Africa Global Funds.

Nautilus said that reasons for retaining SGSS include: “the security provided by a leading global depositary bank; recognized alternative investment fund expertise; local presence and international reach.”

Nautilus Managed Account Platform has been in operation for eight years.

The MANCO targets both retail and institutional investors and provides an operational framework, including independent mandate compliance, which enables its clients to focus purely on making investment decisions.