INVESTMENT SERVICES ACT (RECOGNITION OF PRIVATE COLLECTIVE INVESTMENT SCHEMES) REGULATIONS

INVESTMENT SERVICES ACT (RECOGNITION OF

PRIVATE COLLECTIVE INVESTMENT SCHEMES)

SUBSIDIARY LEGISLATION 370.06

INVESTMENT SERVICES ACT

(RECOGNITION OF PRIVATE COLLECTIVE

INVESTMENT SCHEMES) REGULATIONS

2nd December, 2002

LEGAL NOTICE 353 of 2002, as amended by Legal Notice 190 of 2003.

The title of these regulations is the Investment Services

Act (Recognition of Private Collective Investment Schemes)

Regulations.

A collective investment scheme which limits the total

number of participants to fifteen persons and where the competent

authority is satisfied that -

(i)

the participants are close friends or relatives of

the promoters;

(ii) that the scheme is essentially private in nature

and purpose; and

(iii) the scheme does not qualify as a professional

investor fund in terms of guidelines issued for

this purpose by the competent authority,

shall not be subject to a licence in terms of article 4 of the

Investment Services Act, hereinafter referred to as "the Act", but

shall be subject to recognition by the competent authority under

these regulations

Provided that one of the participants may be a body

corporate, subject to such restrictions, requirements and conditions

as laid down in guidelines issued by the competent authority in

terms of article 6 of the Act.

The provisions of regulation 2 shall not be automatically

operative but their applicability shall be subject to a recognition in

writing by the competent authority. A fee shall be payable in

respect of every application for a recognition as aforesaid and

thereafter annually in terms of the Investment Services Act

(Licence and Other Fees) Regulations.

The competent authority may from time to time issue

guidelines to further regulate the recognition of private collective

investment schemes which may include requirements relating to the

submission of such information, confirmations and documentation

as may be established.

Any recognition granted in terms of these regulations shall

not be deemed to be a licence for the purpose of articles 2 and 12 of

the Income Tax Act.

INVESTMENT SERVICES ACT (RECOGNITION OF

PRIVATE COLLECTIVE INVESTMENT SCHEMES)

A collective investment which was exempt for the purposes

of the requirement for a licence under the Act in terms of regulation

4(c) of the Investment Services Act (Exemption) Regulations as in

force immediately prior to the coming onto force of these

regulations, shall comply with these regulations by not later than

the 31st August, 2003.