REG 28 OF PENSION FUNDS ACT: DRAFT CONDITIONS FOR INVESTMENT IN HEDGE FUNDS
In February this year, the Minister of Finance declared hedge funds to be collective investment schemes in terms of the Collective Investment Schemes Control Act. Despite this declaration, any investment by a pension fund in a hedge fund is regarded as an investment in a hedge fund as defined in Regulation 28 of the Pension Funds Act.
The Registrar of Pension Funds has now published draft conditions with which pension funds (“funds”) must comply when investing in hedge funds. Please refer to the draft notice and explanatory memorandum for further information.
If a person administering a hedge fund is not compliant with the requirements, the fund must inform the Registrar without delay.
In order to accommodate funds currently invested in hedge funds whose managers have not yet been registered as managers of collective investment schemes, the draft notice provides for transitional arrangements.
Comments, queries and proposals may be sent to Alta.Marais@fsb.co.za on or before 29 January 2016.
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