South Africa’s financial sector is increasingly attracting international fund managers seeking new growth opportunities. At the centre of this trend is Section 65 of the Collective Investment Schemes Control Act (“CISCA”), a provision that has opened the door for over 900 foreign portfolios to access one of Africa’s most sophisticated investor markets.
Why section 65 is an attractive option
Section 65 of CISCA is designed to make it straightforward for foreign collective investment schemes (“CIS”) to be marketed and distributed in South Africa, provided they meet robust regulatory standards. This approach not only protects investors but also ensures a level playing field for global fund managers.
Key benefits for international fund managers
- Direct access to a growing market: Section 65 approval allows foreign funds to be actively promoted and distributed to South African investors.
- Recognition of regulatory standards: Approval by the Financial Sector Conduct Authority (“FSCA”) demonstrates that your fund meets high standards of governance and transparency.
- Wide choice of jurisdictions: Funds domiciled in Ireland, Luxembourg, Guernsey, Jersey, the UK, Mauritius, and other leading hubs are well represented among approved portfolios.
- Alignment with global best practice: Section 65 requirements are closely aligned with international norms, making it easier for established funds to meet local expectations.
The approval process at a glance
The process for gaining Section 65 approval is transparent and well established. It starts with a detailed application to the FSCA, including information on the fund’s structure, investment approach, and compliance measures. Once the FSCA is satisfied, your fund is registered and can be marketed in South Africa, with ongoing reporting and disclosure requirements that promote investor confidence.
Choosing the right jurisdiction
Selecting the most suitable jurisdiction for your fund is an important step towards a successful Section 65 application. Our research shows that Ireland and Luxembourg are among the most efficient and cost-effective options, offering strong regulatory alignment and high approval rates. Offshore centres such as Guernsey, Jersey, and Mauritius also provide attractive alternatives for managers seeking operational flexibility and cost efficiency.
Section 65 as a strategic opportunity
Section 65 is more than just a regulatory requirement—it is a strategic opportunity for global fund managers to broaden their investor base and strengthen their international profile. With South Africa’s appetite for offshore investment products continuing to grow, now is an ideal time to explore the advantages of this route.
How can we help?
Navigating Section 65 compliance requires a deep understanding of South African regulatory requirements. We provide comprehensive fund administration and regulatory support services across multiple jurisdictions. Our expertise in regulatory reporting, risk management, and fund distribution ensures a seamless approval process under Section 65.
Download the full white paper
For a detailed guide on using Section 65 of CISCA to expand your market reach, download our exclusive white paper. Gain insights into regulatory requirements, approval processes, and strategic jurisdiction selection to enhance your fund’s global presence.
