Stamp Duties Act, 1968 (Act 77 of 1968)
R 385
Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)Board NoticesDetermination on the requirements for hedge fundsPart 4 : General Provisions Applicable to all Hedge Fund21. Counterparties |
| (1) | A hedge fund may only invest in derivative instruments where the counterparty is— |
| (a) | the South African Government; |
| (b) | a bank; |
| (c) | a long-term insurer registered or deemed to be registered as a long-term insurer under the Long-term Insurance Act, 1998 (Act No. 52 of 1998); |
| (d) | a short-term insurer registered or deemed to be registered as a short-term insurer under the Short-term Insurance Act, 1998 (Act No. 53 of 1998); |
| (e) | a clearing house; or |
| (f) | an authorised user; |
| (g) | a person outside the Republic who is registered, licensed, recognised, approved or otherwise authorised to render services or conduct the business of a bank or a business referred to in paragraphs (b) to (f) by a foreign regulator with functions similar to those of the registrar, the Registrar of Banks, the Registrar of Financial Services Providers or the Registrar of Long-term or Short-term Insurance. |
| (2) | A manager must conduct appropriate stress-testing to assess counterparty exposure and the impact of a change in the risk profile of the counterparty on financing and collateral requirements. |
