South Africa: New requirements for foreign collective investment schemes soliciting investments finalised

On 30 March 2026, the Financial Sector Conduct Authority (FSCA) published the final version of the draft Determination relating to foreign collective investment schemes (CISs) under ‘FSCA CIS Notice 1 of 2026: Determination Relating to Foreign Collective Investment Schemes Soliciting Investments in the Republic’ (CIS Notice 1). CIS Notice 1 came into effect on the date of its publication, thus repealing Board Notice 257 of 2013 as of 30 March 2026. See our earlier article here. 

CIS Notice 1 retains the provisions of the draft Determination in all material respects, save for one substantive change to the conditions relating to prohibited investment and borrowing. Paragraph 7(1)(b) of the draft Determination has been amended under paragraph 7(1)(b) of CIS Notice 1 to allow foreign CISs to utilise a synthetic portfolio or synthetic exchange-traded fund that creates synthetic exposure for an investor as an investment strategy or approach where such portfolio or fund is only promoted to a ‘qualified investor’ as defined in Board Notice 52 of 2015 (whereas the draft Determination had contemplated investors that are not ‘qualified investors’).

CIS Notice 1 embodies a shift from a predominantly rules-based approach of regulation to a principles-based approach to reflect international best practices which have developed in recent years. Foreign CISs and managers of foreign CISs must ensure that the new conditions for approval of foreign CISs and the new ongoing obligations for the continued approval of foreign CISs imposed under CIS Notice 1 are complied with as of 30 March 2026.  

In respect of transitional arrangements, paragraph 12 of CIS Notice 1 states that:

• An approval of a foreign CIS in terms of section 65 of the Collective Investment Schemes Control Act, 2002 (CISCA) in force immediately before the commencement of CIS Notice 1 remains in force for purposes of section 65 of CISCA but may be withdrawn in accordance with section 67 of CISCA.

• An application for the approval in terms of section 65 of CISCA submitted before the commencement of CIS Notice 1 but which has not been finally determined will be considered by the FSCA based on Board Notice 257 of 2013.

For ease of reference, CIS Notice 1 and the related supporting documents can be accessed here.