On 6 March 2015 the Registrar for Collective Investment Schemes (Registrar) published the Determination on the Requirements for Hedge Funds (Requirements) that will come into effect on 1 April 2015.
The purpose of the Requirements published under the Collective Investments Schemes Control Act 45 of 2002 is to regulate the hedge fund industry and declare the business of a hedge fund as a collective investment scheme. The Requirements aim to provide, among other things, protection to investors in hedge funds, assistance in the monitoring and management of systemic risk, enhancement of transparency in the hedge fund industry and the promotion of financial market development.
The Requirements provide for the registration of retail hedge funds and qualified investor hedge funds. Once in force, the Requirements will set the standard for managers to meet when administering hedge funds. There will also be obligations on managers with regard to investments and the exposure of hedge funds.