On the 4th of May 2023, the FSCA released FSCA Communication 12 of 2023 (CIS) dealing with changes to the criminal verification checks process in respect of Collective Investment Schemes (CIS).
In terms of the Determination of Fit and Proper Requirements and Conditions for Managers of Collective Investment Schemes, published under Notice 910 of 2010 the Collective Investment Schemes Control Act, No. 45 of 2002 (CISCA), any CIS Manager must adhere to the fit & proper requirements, honesty & integrity requirements and conditions set out in Notice 910 of 2010 (N 910).
The updated FSCA verification procedure, as outlined in Communication 12 of 2023, makes use of Managed Integrity Evaluation (Pty) Ltd (MIE), as an impartial agency that will carry out all verification tests in relation to requests for registration of a CIS manager in terms of section 42 of CISCA and approval of a change in the CIS manager’s board of directors or shareholding of the CIS manager in terms of section 43 of CISA. The MIE process will replace the previous requirement of verification by submission of police clearance certificates.
In order for MIE to conduct verifications checks, the FSCA will require the fingerprints of the following persons:
- all directors of the entity applying for registration as a CIS manager; or
- the new director(s) where approval is requested under section 43(1)(a), and/or
- all significant owners, who are natural persons, of the-
– entity applying for registration as a CIS manager, or
– CIS manager requesting approval for a change in shareholding in terms of s43(1)(a).
In terms of the new procedure, the FSCA will schedule appointments with MIE and will cover the costs of MIE screening. MIE has locations across the country, but applicants may choose, at their own cost, to make use of a SAPS 91(a) form and courier the original SAPS 91(a) form to MIE. Fees payable to the SAPS for SAPS 91(a) and courier fees will therefore not be covered by the FSCA. The notification provides specifics regarding the duties of the FSCA under the amended procedure, as well as the location of the MIE offices.
Communication 12 of 2023 repeals CISCA Circular No. 16 to Managers and Trustees of Collective Investment Schemes – Verification Checks dated 12 January 2012 (Circular 16) which prescribed the previous procedure for the use of police clearance certificates.