COMPLIANCE WITH THE SARB CURRENCY AND EXCHANGES MANUAL FOR AUTHORISED DEALERS
The Currency and Exchanges Manual for Authorised Dealers (Authorised Dealer Manual) contains, inter alia, the permissions and conditions applicable to transactions in foreign exchange that may be undertaken by Authorised Dealers and/or on behalf of their clients. Institutional investors, including category II and IIA discretionary financial services providers authorised by the FSCA, may invest funds offshore up to the applicable prudential limit and subject to the requirements as outlined in the Authorised Dealer Manual.
Discretionary financial services providers may elect to register with the Financial Surveillance Department as an institutional investor. Registration is required for all discretionary financial services providers wishing to invest and/or manage funds offshore in respect of retail as well as institutional assets. A request, on the official letterhead of the discretionary financial services provider, should be emailed to firstname.lastname@example.org. Upon registration, the requirements outlined in section B2H(viii) of the Authorised Dealer Manual must be adhered to.
Discretionary financial services providers who elect not to register as institutional investors with the Financial Surveillance Department, may not invest and/or manage funds offshore in respect of retail as well as institutional assets, but will be able to acquire foreign exposure for their clients only through another domestic institutional investor. These discretionary financial services providers, who elect not to register with the Financial Surveillance Department, are treated as intermediaries and are exempt from the requirements of B2H(viii) of the Authorised Dealer Manual.
Discretionary financial services providers who manage collective investments schemes only may rely on the approval of Management Companies as institutional investors and do not need to register as such.
If you have been contacted by the Financial Surveillance Department of the South African Reserve Bank (FinSurv), you should confirm in writing on an official letterhead whether your institution invests and/or manages any offshore funds on behalf of retail or institutional clients, within 30 days from the date of the e-mail. Written confirmation can be sent to FSP-Followups@resbank.co.za