The FSCA has published a draft general exemption that proposes to exempt managers and auditors of collective investment schemes (CIS) and its portfolios from those parts of section 74(1) (a) and (2) (c) of CISCA, which determines the accounting standard to be applied by managers and auditors of CIS portfolio’s as per the specific accounting standards that are set out in the draft exemption.
The Act currently determines that accounting records are maintained and annual financial statements are prepared in conformity with ‘generally accepted accounting practice’. However, these accounting standards are no longer applied in South Africa. No further regulated requirement exists with regards to an accounting and auditing standard for a collective investment scheme and its portfolios.
As a result, this exemption is aimed at facilitating the implementation of alternative accounting standards for managers and collective investment schemes in South Africa in order to ensure alignment with South African accounting practices international standards for accounting.
Interested parties are invited to submit comments on the draft Exemption Notice in writing on or before 29 November 2019 to Marius.DeJongh@fsca.co.za.
Click here to download FSCA Communication 1 of 2019 (CISCA)
Click here to download FSCA Draft Exemption Notice 1 Of 2019 (CISCA).