CFCL General information – South Africa
Reference
CFCL eligible fund types
Register market
Collective Investment Schemes (CIS) – CIS are regulated by the Collective Investment Schemes Control Act, 2002 (CISCA).
CISCA provides for five categories of permitted collective investment schemes in South Africa, namely:
- CIS in securities;
- CIS in property;
- CIS in participation bonds;
- Retail hedge funds; and
- Qualified investor hedge funds.
Hedge Funds – Hedge funds are regulated under CISCA as collective investment schemes. There are two types of hedge funds permitted in terms of CISCA, namely:
- Retail hedge fund; and
- Qualified investor hedge funds
Private Equity Funds – Private equity funds can have any legal form however the most common forms are:
- Limited liability partnerships (the en commandite partnership) and;
- Bewind trusts (i.e. vesting trusts).
Funds that are not registered with the Financial Sector Conduct Authority in accordance with the Collective Investment Schemes Control Act, 2002 are not eligible under CFCL.
CSD link
Exchange-Traded Funds (ETFs) are permitted and can be traded within the South African market.
Please refer to the Market Link Guide – South Africa for more information.
Eligible funds
Only ETFs is eligible for CFCL.
Custody chain and depository
Type of link | Indirect via Standard Chartered Bank - Johannesburg Branch to Strate Ltd |
CSD | Custodian | CBL (as CFCL’s depository) | |
Name | Strate | Standard Chartered Bank, Johannesburg Branch | Clearstream Banking S.A. |
FATCA GIIN | 66R8NP.99999.SL.710 | JXJVJM.00000.LE.710 | N1V1GJ.00000.LE.442 |
LEI | 378900F4A0A690EA6735 | RILFO74KP1CM8P6PCT96 | 549300OL514RA0SXJJ44 |
Country of incorporation | South Africa | UK | Luxembourg |
Account type | Omnibus | Omnibus | Segregated |
Legal Account name/holder | Clearstream Banking S.A. | Clearstream Fund Centre | Clearstream Fund Centre S.A. |
Depository
Depository | CSD/Local custodian/Agent |
CBL | STANDARD CHARTERED BANK - JOHANNESBURG BRANCH 1 Depository Code: 1Z |
Operational arrangements
This section describes the operational arrangements of the South African market:
Domestic Market | Register Market | Remarks | |
Yes/No | |||
Settlement free of payment | Yes | Yes | |
Settlement against payment | Yes | Yes | Eligible settlement currencies: South African Rand (ZAR) |
Settlement against payment in central bank money | No | N/A | CBL, as a sub-custodian for CFCL holds a cash account at the custodian. Against payment settlement in ZAR takes place on the cash account of Standard Chartered Bank Johannesburg at the local central bank. |
Settlement penalty fees | Yes | N/A | |
Partial settlement | No | N/A | Except when the local CSD imposes the partial delivery of securities. |
Recycling | No | N/A | |
Settlement with Euroclear | No | N/A | |
Allegements | No | N/A | |
Registered securities | No | N/A | |
Proxy voting | Yes | N/A | |
Liquidity Hub Connect | No | N/A | |
Sale and purchase of rights | No | N/A | |
Repo services | Yes | N/A | |
Market restrictions | Yes | N/A | |
FTT | No | N/A | |
Daily reconciliation | Yes | N/A | |
Moments of entry of instructions | The CSD rules do not define the moment of entry within the meaning of the Settlement Finality Directive. | ||
Irrevocability of instructions | Transactions that are with status matched and committed are irrevocable and require bilateral cancellation. | ||
Finality of instructions | Settlement finality, by law, of both cash and securities is achieved upon settlement in the respective systems of Strate and the central bank SARB (South African Reserve Bank). | ||
Legal arrangements
The below section is valid on the date of the legal opinions that were issued and might be subject to change.
The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.
As CBL is our sub-custodian, please refer to the CBL General information - South Africa for the complete information about Legal arrangements.
Cash correspondent details
Currency: | South African Rand (ZAR) |
CCB name: | Standard Chartered Bank, Johannesburg Branch |
CBL account: | 051 013288 00 |
Swift address: | SCBLZAJJXXX |