Hedge fund administration in South Africa
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In April 2015, the South African Financial Services Board (“FSB”) released Board Notice 52, declaring all hedge funds to be regulated hedge funds, falling under the Collective Investment Schemes Control Act (Act 45 of 2002) (“CISCA”). A collective investment scheme (“CIS”) can be described as an investment product that allows many different investors to pool their money into a portfolio. Unit trusts were the first collective investment scheme to be offered to investors in South Africa. Hedge Fund Managers, needing to comply with CISCA were now required to either register for their own Management Company (a registered Management Company as defined under CISCA, section 42) or to platform with an existing Management Company under a co-naming white label arrangement.