Prior to the enactment of the Collective Investment Schemes Control Act, 2002 a practice colloquially described as "white labelling" emerged within the collective investment schemes industry. This was the practice whereby a third party, who did not have the capacity or the intention to establish a collective investment scheme, requested a manager to establish a portfolio in the name of the third party under the manager's registered collective investment scheme.

It is considered desirable that this practice be more closely regulated in order to protect the interests of investors;

Section 46(2) of the Act empowers the Registrar to determine the manner, limits and conditions applicable to portfolios of collective investment schemes;

This Notice regulates third party named portfolios by inter alia providing for two categories of arrangements which will be allowed, namely incubator portfolios where the financial services provider intends to become a manager and co-named portfolios where the financial services provider has no intention to become a manager. The reason for the differentiation is to assist emerging entities to attain the required level of skills and experience to be authorised as managers in their own right. If the intention of the financial services provider is not to, eventually, as prescribed in this Notice, register as a manager, the collective investment scheme manager, who remains ultimately responsible for the portfolio, must connect its name to the portfolio. Transparency is therefore achieved by disclosure requirements. Portfolios sizes will be regulated to ensure viable portfolios. Finally it must be ensured that the core business of a manager remains the administration of its own portfolios rather than providing a platform for third party portfolios to which its name is not connected.