The FSB has now confirmed that mandates between hedge fund management companies and Category IIA FSPs (hedge funds investment managers) fall squarely under the ambit of the Collective Investment Schemes Control Act (CISCA). These mandates, as amended in terms of CISCA Board Notice 52 of 2015 (Determination on the requirements for hedge funds) (“BN 52”), therefore do not need to be approved by the FAIS Department of the FSB.
Furthermore, mandates that govern the discretionary relationship between CAT IIA FSPs and investor clients (i.e. mandates that are governed by the FAIS Act and in respect of which the Registrar must approve material amendments) do not, according to the FSB, need to be amended by virtue of BN 52 and would therefore, as far as BN 52 is concerned, not need approval from the FAIS Department of the FSB.
We are advised that in the initial stages, the FAIS Department of the FSB did approve a few of these mandates for which a fee was charged. If this was the case with you, please inform email@example.com or firstname.lastname@example.org so that they can contact the FSB to discuss refunding of the fee charge
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