South Africa regulator introduces stricter rules for hedge fund managers
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- New “Fit and Proper” requirements for hedge fund managers
- Rules come into effect February 2008
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South Africa’s Financial Services Board (FSB) has published new rules for licensing of hedge fund managers. The rules amend the existing Financial Advisers and Intermediary Services Act to create a special category for hedge fund managers, and require anyone managing a hedge fund to apply for a new licence by February 2008.
The new rules introduce new “fit and proper” requirements for hedge fund managers seeking a licence. According to the FSB notice (87 of 2007), applicants for category IIA licences (hedge funds financial services providers) must have “a track record of managing particular hedge fund strategies” and be able to “adequately demonstrate knowledge, skill and competency in managing all assets and asset classes comprising a hedge fund portfolio.” It also sets out minimum academic standards and qualifications for different levels of experience.
The FSB will shortly be publishing additional regulations specifying the disclosures and risk warnings to be given to investors by hedge fund managers.
Currently South Africa has around 100 hedge fund managers managing around £1.5 billion in assets.
Click here to read the FSB notice.
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