Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)Board NoticesDetermination of conditions and the manner in which participatory interests in collective investment schemes in securities, property and participation bonds may be issued to an investor as a tax free investment3. Conditions |
| (1) | Where a manager markets, sells or otherwise provides participatory interests to an investor as being a tax free investment, the manager must ensure that it and the portfolio, or class of participatory interests or account provided for the investor constituting the tax free investment, fully comply with the Regulations at all times. |
| (2) | Within 60 days of first issuing any participatory interest as a tax free investment, the manager must submit to the Registrar a report obtained from an independent auditor, confirming that the administrative and accounting systems of the manager are capable of— |
| (a) | separately identifying each investor's tax free investment account, |
| (b) | managing annual and lifetime investment limits, |
| (c) | accounting for and managing all transactions in and out of the investors' account in compliance with the Regulations; and |
| (d) | properly reporting on the investor's account to the investor on a quarterly basis. |
| (3) | The manager must ensure that it includes the report referred to at subparagraph (2) above in the manager's annual audit. |
| (4) | The manager must in addition to other determined disclosures, fully disclose to the investor prior to accepting a tax free investment transaction from an investor, the fact that the account is a tax free investment, the nature of a tax free investment, the maximum annual and lifetime investment limits, how these limits operate and what the consequences are for the investor should these limits be exceeded as well as the general tax implications of a tax free investment. |