South African Institute for Drug Free Sport Act, 1997
R 385
Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002)Codes of ConductNotice on Codes of Conduct for Administrative and Discretionary FSP's, 2003Chapter II : Code of Conduct for Discretionary FSP’s, 2003Part I : Introductory provisions2. Definitions |
| 2.1 | In this Code "the Act" means the Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002), any word or expression to which a meaning has been assigned in the Act shall have the meaning so assigned to it and, unless the context indicates otherwise— |
"administrative FSP", "bulking", "discretionary FSP", "FSP", "netting" and "General Code"
have the respective meanings assigned thereto in section 2 of the Code of Conduct for Administrative FSP’s, 2002, contained in Chapter 1 of this Schedule;
"fund of hedge funds"
means a portfolio that, apart from assets in liquid form, consists of an interest, holding or investment in one or more other hedge funds;
[Definition inserted by section 2(a) of Board Notice 89 of 2007]
"hedge"
in relation to a hedge fund, means to enter into transactions that protect against adverse price movements and limit exposures to specific risks;
[Definition inserted by section 2(a) of Board Notice 89 of 2007]
"hedge fund"
means a portfolio which uses any strategy or takes any position which could result in the portfolio incurring losses greater than its aggregate market value at any point in time. and which strategies or positions include but are not limited to—
| (a) | leverage: or |
| (b) | net short positions; |
[Definition inserted by section 2(a) of Board Notice 89 of 2007]
"hedge fund FSP"
means a financial services provider—
| (a) | that renders intermediary services of a discretionary nature in relation to a particular hedge fund or fund of hedge funds in connection with a particular financial product referred to in the definition of 'administrative FSP' in subsection 2.1 of section 2 of Chapter 1 of this Schedule; and |
| (b) | acting for that purpose specifically in accordance with the provisions of the respective codes set out in this Chapter and Chapter Ill of this Schedule, read with the Act, the General Code of Conduct for Authorised Financial Services Providers,2002 (where applicable), and any other applicable law; |
"leverage",
means—
| (a) | any position in which the delta factor would be less than -nil or greater than 1 ; or |
| (b) | a position in which the nominal exposures to assets in the portfolio is less than nil or more than 100% of the market value of the portfolio; |
[Definition inserted by section 2(a) of Board Notice 89 of 2007]
"net short position"
means a condition in which a portfolio has a greater nominal exposure to short positions than long positions in any asset class or in aggregate across the portfolio, meaning that more capital (including collateral) supports short positions than is invested in long positions and which may in certain cases require additional capital to be invested in the portfolio over and above the initial capital investment;
[Definition inserted by section 2(a) of Board Notice 89 of 2007]
"nominee company"
means a nominee company referred to in section 8;
"regulations"
means the Financial Advisory and Intermediary Services Regulations, 2002.
"short position"
means—
| (a) | a position where an asset is sold by a seller for delivery at a future date or time, and the seller does not own such asset at the time of the sale; or |
| (b) | in the case of a derivative instrument, a position where— |
| (i) | a decrease in the price of the underlying asset has a positive impact on the value of the derivative instrument: or |
| (ii) | an increase in the price of the underlying asset has a negative impact on the value of the derivative" instrument. |
[Definition inserted by section 2(b) of Board Notice 89 of 2007]
| 2.2 | In the case of any inconsistency or conflict between a provision of this Code and a provision of the General Code, the first mentioned provision shall prevail. |
