WEST PALM BEACH, FL (www.hedgeco.net) – The South African Financial Market regulator, FSB has announced its plans to license hedge funds in South Africa soon. According to chairman of the SouthAfrican Financial Services Board, Dr Cyrus Rustomjee, �the FSB plans to license hedge fund products within a year.� The FSB made news last year when it sent out notices to investment managers in thecountry warning them to cease operations until further notice. Such letter warned fund managers to stop marketing and managing hedge funds until the agency makes clarifications on such issue. Thenotices caused a near panic condition as fund managers sought additional information on the matter. Such notices were soon withdrawn.
Gery Anderson, the deputy executive officer at FSB along with Kevin Shames, the Chairman of Alternative Investment Management Association explained that hedge funds in South Africa may continue to operate as usual until new hedge fund rules are issued. Such matter would go through a �consultative process�, according to the authorities. The notice according to Anderson�s statement, was aimed at preventing fund managers from claiming that they have been approved by the FSB to sell hedge funds, simply because they were approved investment managers.
New guidelines are now approved for hedge funds to get their licenses within 12 months, currently hedge funds are not regulated in South Africa, and as a consequence such portfolios are not approved for sale to the wider South African investment community. Hedge Funds have now been approved to make their debut in the South African market in 2006 according to the report. No further details were immediately provided.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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