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South Africa
Collective Investment Schemes Control Act, 2002
Act 45 of 2002
- Published in Government Gazette 24182 on 13 December 2002
- Assented to on 9 December 2002
- Commenced on 3 March 2003 by Collective Investment Schemes Control Act, 2002: Commencement
- [This is the version of this document from 1 April 2023.]
- [Amended by Revenue Laws Amendment Act, 2007 (Act 35 of 2007) on 1 July 2008]
- [Amended by Taxation Laws Amendment Act, 2008 (Act 3 of 2008) on 1 July 2008]
- [Amended by Financial Services Laws General Amendment Act, 2008 (Act 22 of 2008) on 1 November 2008]
- [Amended by Financial Markets Act, 2012 (Act 19 of 2012) on 3 June 2013]
- [Amended by Financial Services Laws General Amendment Act, 2013 (Act 45 of 2013) on 28 February 2014]
- [Amended by Financial Sector Regulation Act, 2017 (Act 9 of 2017) on 1 April 2018]
- [Amended by Financial Sector Regulation Act, 2017 (Act 9 of 2017) on 1 April 2023]
Part I – Collective investment schemes
1. Definitions
1A. Relationship between Act and Financial Sector Regulation Act
1B. Regulatory instruments
For the purposes of the definition of "regulatory instrument" in section 1(1) of the Financial Sector Regulation Act, any matter prescribed by the Authority in respect of which notice in the Gazette is specifically required by this Act is a regulatory instrument.[section 1B inserted by section 290 of Act 9 of 2017]2. Principles for administration of collective investment scheme
3. Disclosure of information
Before entering into a transaction with an investor—4. Duties of manager
5. Requirement for the administration of collective investment schemes and application of Act
6. Prohibition of misleading names and acts
7. ***
[section 7 substituted by section 211 of Act 45 of 2013 and repealed by section 290 of Act 9 of 2017]8. ***
[section 8 repealed by section 212 of Act 45 of 2013]9. ***
[section 9 repealed by section 212 of Act 45 of 2013]10. ***
[section 10 repealed by section 212 of Act 45 of 2013]11. ***
[section 11 repealed by section 212 of Act 45 of 2013]12. ***
[section 12 repealed by section 212 of Act 45 of 2013]13. ***
[section 13 repealed by section 212 of Act 45 of 2013]Part II – Functions of registrar
14. ***
[section 14 substituted by section 213 of Act 45 of 2013 and repealed by section 290 of Act 9 of 2017]15. Powers of registrar after investigation
15A. Powers of registrar in respect of financial soundness requirement
15B. ***
[section 15B inserted by section 215 of Act 45 of 2013 and repealed by section 290 of Act 9 of 2017]16. Cancellation or suspension of registration of manager
17. Registrar may object to certain documents
The registrar may object to the terms of any price list, advertisement, brochure or similar document relating to a collective investment scheme published or proposed to be published by a manager or any of its authorised agents if the registrar considers the terms are calculated to mislead or are, for any other good and sufficient reason, objectionable or undesirable, and the registrar may direct the manager to discontinue or refrain from publishing or distributing any such document, or to amend its terms.18. Power of registrar to impose fines
19. Power of registrar to request audit
20. Attendance of meetings of association and furnishing of certain documents to registrar
21. ***
[section 21 repealed by section 216 of Act 45 of 2013]22. Exemptions
When it is in the public interest, the registrar may exempt—23. ***
[section 23 repealed by section 290 of Act 9 of 2017]24. ***
[section 24 repealed by section 290 of Act 9 of 2017]Part III – Association of collective investment schemes
25. Application for association licence
26. Issue or renewal of association licence
The registrar may on such conditions as he or she may determine issue or renew an association licence if the registrar is satisfied that—27. Refusal of renewal of association licence
28. Cancellation or suspension of association licence
29. Restriction on use of name or description implying connection with association
A person may not use a name or description signifying or implying some connection between a company, close corporation, body, firm, business, undertaking and an association which has been licensed in terms of section 26 unless such person is a member of that association.30. Delegation of functions of executive committee
An executive committee of an association may, subject to such conditions as it may determine, delegate or assign any power or duty conferred upon or imposed upon it under this Act to a subcommittee or a person designated by it but is not divested or relieved of a power or duty so delegated or assigned.31. Suspension of administration of collective investment scheme
32. Rules of association
The rules of an association must provide for the matters specified in Schedule 4.33. Power of court to declare member disqualified
34. Voluntary dissolution of association
35. Winding-up of association by court
36. Business rescue of association
Section 111A applies with the changes required by the context to the business rescue of an association.[section 36 substituted by section 219 of Act 45 of 2013]37. Appointment of liquidator
Despite the provisions of the Companies Act, a liquidator in respect of an association must be appointed by the Master of the High Court in consultation with the registrar.[section 37 substituted by section 220 of Act 45 of 2013]38. Report by association to registrar
An association must within two months after the end of every calendar year submit a report to the registrar concerning the activities of its members and of its own activities in relation to this Act and, within three months after the end of the financial year, submit to the registrar audited financial statements which fairly present the financial affairs of the association.Part IV – Collective investment schemes in securities
39. Definition
In this Part, unless the context indicates otherwise, “collective investment scheme in securities” means a scheme the portfolio of which consists, subject to this Act, mainly of securities.40. Determination of securities or classes of securities
The registrar may determine securities or classes of securities that may be included in a portfolio of a collective investment scheme in securities.41. Restrictions on administration of collective investment scheme in securities
42. Procedure for registration of manager of collective investment scheme in securities
43. Change of name of manager, portfolio or collective investment scheme in securities and change of shareholding or directors and removal of appointees
44. Determination of market price of securities
45. Foreign securities in which collective investment scheme in securities may invest
A manager may, subject to the provisions of this Act and any other law, invest assets of a portfolio of a collective investment scheme in foreign equity or non-equity securities if such foreign—46. Limitation on investment in portfolio
Part V – Collective investment schemes in property
47. Definitions
48. Restrictions on administration of collective investment scheme in property
49. Foreign country in which collective investment scheme in property may invest
A manager may, subject to this Act or any other law, invest assets of a portfolio of a collective investment scheme in property in immovable property in a foreign country and property shares or participatory interests in a collective investment scheme in property in a foreign country if such foreign country has a foreign currency sovereign rating by a rating agency, which raring and rating agency must be determined by the registrar: Provided that if the country has been rated by more than one agency the lower of the ratings applies.50. Listing of participatory interests by exchange
51. Certain provisions of Part IV to apply in respect of manager of collective investment scheme in property
Sections 42, 43 and 46 apply, in so far as they can be applied with the necessary changes, in respect of a manager of a collective investment scheme in property.Part VI – Collective investment schemes in participation bonds
52. Definitions
53. Restrictions on administration of collective investment scheme in participation bonds
54. Restrictions on business of collective investment scheme in participation bonds
55. Capacity of manager
56. Registration of participation bonds in name of nominee company
57. Rights of participant
The debt secured by a participation bond is, to the extent of the participatory interest granted to any participant, a debt owing by the mortgagor to such participant and not to the nominee company, and the rights conferred by the registration of any such bond are regarded, despite the registration of the bond in the name of the nominee company, to be held by the participants.58. Minimum investment period
An agreement in terms of which a manager accepts money for investment in a collective investment scheme in participation bonds must provide that such money is invested in such scheme for a period of not less than five years.59. Participatory interests rank in preference concurrently
All participatory interests granted in any participation bond, whenever granted, shall rank in preference concurrently with one another as from the dale of registration of the bond.60. Restrictions on rights of nominee company
A nominee company may not transfer, cede or in any way encumber any of its rights under a participation bond without the written consent of the registrar.61. Collateral security in respect of participation bonds
Part VII – Declared collective investment schemes
62. Definition
In this Part, unless the context indicates otherwise—“declared collective investment scheme” means a collective investment scheme other than a collective investment scheme in securities, property or participation bonds, which has been declared to be a collective investment scheme under section 63.63. Declaration of specific type of business as collective investment scheme for purposes of Act
64. Certain provisions to apply in respect of declared collective investment scheme
Sections 41, 42, 43, 45 and 46 apply, to the extent to which they can be applied with the necessary changes, in respect of a manager of a declared collective investment scheme.Part VIII – Foreign collective investment schemes
65. Restrictions on foreign collective investment scheme to carry on business in Republic
66. Reciprocity
67. Withdrawal of approval of foreign collective investment scheme
The registrar may at any time withdraw an approval under section 65 if—Part IX – Trustee or custodian
68. Appointment and termination of appointment of trustee or custodian
69. Qualifications and registration of trustee or custodian
70. Duties of trustee or custodian
71. Status of assets
For purposes of this Act any—72. Liability of trustee or custodian in respect of loss of assets
The trustee or custodian must indemnify the manager and investors against any loss or damage suffered in respect of money or other assets in the custody of the trustee or custodian and which loss or damage is caused by a wilful or negligent act or omission by the trustee or custodian.Part X – Auditor
73. Appointment and approval of auditor
74. Accounting records and audit
75. Duty of auditor to disclose irregularity or undesirable practice
Part XI – Conversion of collective investment scheme
76. Definitions
77. Conversion of collective investment scheme
A manager may not convert a collective investment scheme—78. Application for registrar's approval
79. Consideration of application
80. Resolution by investors
81. Registration of Memorandum of Incorporation by Companies and Intellectual Property Commission
82. Certificate of registration of conversion and notice in Gazette
83. Effects of conversion
84. Issue of participatory interests to persons who were investors in former collective investment scheme
Part XII – General
85. Restrictions on assets which may be included in or lent by portfolio of collective investment scheme
86. Business capacity of manager
87. Definition
For the purpose of sections 88 and 89, “liquid form” means any asset which is capable of being liquidated within seven days.88. Capital requirement which manager must maintain
89. Obligation of manager to maintain capital requirement and failure to comply
90. Financial statements and other information to be furnished by manager
91. Exercise of voting power by manager
A manager or its nominee exercising the voting power conferred on it by the assets held in a portfolio, must exercise such power in the best interest of the investors.92. Unauthorised gain derived from acquisition of assets
A manager, director or employee of a manager may not directly or indirectly have a personal interest in or derive any pecuniary advantage from the acquisition or sale by them of any assets of a portfolio except if such advantage accrues in the ordinary course of business to them by virtue of—93. Permissible deductions from portfolio
94. Calculation of price and limitation of amount of rounding-off accrual
95. Sale of participatory interests only on payment of full purchase price and restriction on lending or borrowing of money
96. Power of manager to borrow money to bridge insufficient liquidity in a portfolio
In the case where insufficient liquidity exists in a portfolio or where assets cannot be realised to repurchase or cancel participatory interests, the manager of a collective investment scheme in securities may borrow the necessary funds for such repurchase or cancellation on security of the assets and for the account of the portfolio in question, from a registered financial institution at the best commercial terms available and until assets can be realised to repay such a loan: Provided that the maximum amount so borrowed may not exceed 10 per cent of the market value of such portfolio at the time of borrowing.97. Matters which must be provided for in deed and exemption from and suspension of provision of deed
98. Void provisions of deed and amendment of deed
99. Amalgamation of business of collective investment schemes or portfolios and cession, transfer or take-over of rights of investors
100. Contents of price list, advertisement, brochure and similar document
101. Principal office and public officer in Republic
102. Winding-up of portfolio of collective investment scheme
103. Manner of dealing with trust property on winding-up of portfolio
104. Separation of assets of portfolio handed to or received by manager, trustee or custodian
For the purposes of a claim against a manager, trustee or custodian there must be excluded from the assets of the manager, trustee or custodian—105. Separation of funds of investors and other persons
106. False or misleading statements
No person may make a statement or disseminate information which he or she knows, or ought reasonably to know, is false or misleading or is likely or intended to—107. Fraudulently inducing person to purchase or deal in participatory interests
No person may—108. Evidence
A record purporting to have been made or kept in the ordinary course of the business of a collective investment scheme, or a copy of or an extract front such record duly certified to be correct, is on its mere production by the State in any criminal proceedings admissible as evidence of the facts contained in such record, copy or extract.109. Liability for loss
110. Certain written matter to bear names of certain persons
No person may publish or issue to the public or circulate any written comment which may influence the value of any participatory interest unless such comment is accompanied by—111. Application of Companies Act in relation to manager
111A. Business rescue of manager
112. Delegation of functions
113. Exemption from Act 57 of 1988
The Trust Property Control Act, 1988 (Act No. 57 of 1988), does not apply in respect of a collective investment scheme administered in terms of this Act.114. Regulations by Minister and notices by registrar
115. Offences
Any person who—116. Penalties
Subject to the provisions of the Criminal Law Amendment Act, 1997 (Act No. 105 of 1997), regarding minimum sentences for serious offences, any person who is, in terms of any provision of this Act, guilty of an offence in respect of which no penalty is specifically provided, is liable to a fine not exceeding R10 million or to imprisonment for a period not exceeding 10 years or to both such fine and such imprisonment.[section 116 substituted by section 238 of Act 45 of 2013]117. Repeal or amendment of laws and savings
118. Short title
This Act is called the Collective Investment Schemes Control Act, 2002, and comes into operation on a date fixed by the President by proclamation in the Gazette.History of this document
01 April 2023 this version
Amended by
Financial Sector Regulation Act, 2017
01 April 2018
28 February 2014
03 June 2013
Amended by
Financial Markets Act, 2012
Read this version
01 November 2008
01 July 2008
Amended by
Revenue Laws Amendment Act, 2007
Amended by
Taxation Laws Amendment Act, 2008
Read this version
03 March 2003
13 December 2002
09 December 2002
Assented to
Cited documents 14
Act 14
1. | Promotion of Administrative Justice Act, 2000 | 2053 citations |
2. | Companies Act, 2008 | 1898 citations |
3. | Banks Act, 1990 | 866 citations |
4. | Electronic Communications and Transactions Act, 2002 | 347 citations |
5. | Trust Property Control Act, 1988 | 305 citations |
6. | Commissions Act, 1947 | 303 citations |
7. | Long-term Insurance Act, 1998 | 296 citations |
8. | Financial Services Board Act, 1990 | 208 citations |
9. | Financial Institutions (Protection of Funds) Act, 2001 | 94 citations |
10. | Financial Institutions Second Amendment Act, 1993 | 23 citations |
Documents citing this one 143
Gazette 114
Judgment 13
Act 9
1. | Companies Act, 2008 | 1898 citations |
2. | Income Tax Act, 1962 | 1623 citations |
3. | Financial Intelligence Centre Act, 2001 | 763 citations |
4. | Long-term Insurance Act, 1998 | 296 citations |
5. | Financial Markets Act, 2012 | 211 citations |
6. | Financial Sector Regulation Act, 2017 | 120 citations |
7. | Financial Institutions (Protection of Funds) Act, 2001 | 94 citations |
8. | Securities Transfer Tax Act, 2007 | 17 citations |
9. | Financial Sector and Deposit Insurance Levies Act, 2022 | 3 citations |
Provincial Notice 3
Government Notice 2
1. | Policyholder Protection Rules (Long-term Insurance), 2017 | |
2. | Regulations under section 109(1)(bA) of the Legal Practice Act, 2014 |
Board Notice 1
1. | Determination of Fit and Proper Requirements, 2017 | 1 citation |
General Notice 1
1. | Levies for Financial Institutions, 2022 | 1 citation |