NEWS:

GUIDANCE ON REQUIREMENTS FOR ADVERTISING, MARKETING AND INFORMATION DISCLOSURE FOR HEDGE FUNDS
05/29/2017

On 11 May 2017, the Registrar of Collective Investment Schemes published Guidance note HF 02 Information Disclosure wherein the Registrar reminds all managers to comply with Board Notice 92 of 2014 (Advertising, Marketing and Information Disclosure requirements for Collective Investment Schemes).

HF02 provides clarity on the requirements of BN 92 to the extent that it applies to hedge funds and draws attention to the fact that Board Notice 52 of 2015 (Determination on the requirements for Hedge Funds) also contains certain disclosure requirements, especially pertaining to the general investor quarterly report and the investor statement.

The following should be taken note of:

General investor quarterly reports and investor statements: Managers are advised to apply paragraphs 27 (3) & (4) of BN 52 and not BN 92 sections 15 (4) & (5).

Disclosure of information prior to investing in a hedge fund: To the extent that the requirements of paragraph 27 (2) of BN 52 are included in the MDD (Minimum Disclosure Document) and similarly in the application form, a Manager will be deemed to have complied with the prescribed disclosure requirements, provided the disclosures are made in the appropriate manner.

Process for lodging hedge fund material with the FSB: This must be done through the FSB CIS online portal, as detailed in Annexure A to HF02.

Complaints related to marketing, advertising and other information disclosure: Complaints can be sent to hedgefunds.complaints@FSB.co.za.

Should you require any assistance with the above, please contact stephen.gerber@complianceservices.co.za.

 

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