Statistics Act, 1999
R 385
Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)Board NoticesAdvertising, marketing and information disclosure requirements for collective investment schemesPart V : Information Disclosure18. Application forms and process |
| (1) | A manager must obtain from an investor a signed application form or contract, which constitutes the agreement with the investor and records the arrangements between the parties, and complies with the requirements in this paragraph. |
| (2) | A manager must ensure that it discloses all conflicts or possible conflicts that may exist between the interests of the manager and the interests of an investor and the manner in which the conflict is being managed. |
| (3) | A manager must require the investor to provide, as a minimum, the following information on the application form |
| (a) | investor details; |
| (b) | investor's communication choice; |
| (c) | the investor's source of funds; |
| (d) | the investor's investment plan or portfolio selection; |
| (e) | the investor's instruction on income distribution; |
| (f) | bank details of the investor for purposes of collection of investment contributions as well as payment of redemptions and distributions; |
| (g) | chosen method of payment; |
| (h) | debit order authorisation and annual increases, if any; |
| (i) | investor's instructions regarding withdrawals or redemption; |
| (j) | the investor's declarations including that of having noted and understood all of the information provided; and |
| (k) | date and signature. |
| (4) | A manager must ensure that the following minimum information is disclosed to a potential investor during the application process— |
| (a) | all fees and charges relating to a particular investment, including management fees, initial fees, performance fees including the method of calculation, advisory fees and any other applicable fees and charges; |
| (b) | the details, fees payable to and signature of the financial services provider; |
| (c) | complaints process; |
| (d) | terms and conditions of investment; |
| (e) | the manner in which participatory interests may be bought or sold; |
| (f) | how the NAV and price are calculated |
| (g) | mandatory disclosures set out in paragraph 6; and |
| (h) | a summary overview of the portfolio and information regarding the participatory interests, similar to the content of the MDD. |
| (5) | A manager of a collective investment scheme in participation bonds must ensure that an application form for that scheme is in writing and provides (in addition to the information contemplated in section 3 of the Act) that— |
| (a) | money invested in the scheme must remain invested in the scheme for a period of not less than five years; |
| (b) | the participant's investment is secured by all the participation bonds included in the scheme and that the debt owing under the bonds is, to the extent of the participatory interest granted to such participant, a debt owing to such participant and not to the manager or the nominee company; |
| (c) | neither the manager nor the nominee company guarantees the repayment of the debt; |
| (d) | upon the expiry of the five year period referred to in section 58 of the Act, the participant may withdraw his or her investment, subject to the Rules for the administration of collective investment schemes in participation bonds and subject to the participant having given the manager no more than three months' written notice; |
| (e) | the participant may, within the five year period referred to in section 58 of the Act, transfer, cede or encumber his participatory interest, subject to the rules for the administration of collective investment schemes in participation bonds; |
| (f) | the interest payable by the mortgagors under participation bonds may fluctuate during the terms of the bonds and that interest payable to the participant may fluctuate; |
| (g) | the interest paid by mortgagors to the manager in terms of participation bonds, less the manager's administration fees, which must be determined by the manager from time to time, must be paid by the manager to the participants at intervals determined by the manager; and |
| (h) | the manager must furnish each participant, with each payment of interest, in writing or by electronic means, at intervals of not more than three months, with a statement of account disclosing the amount of capital owing to the participant and indicating how the net amount of interest paid has been calculated. |
