As a result of the rapidly changing nature of the financial services landscape in South Africa, the Financial Services Board (FSB) is implementing a new system to ensure it is able to continue effectively monitoring the compliance of collective investment schemes.
As a result the FSB has appointed Morningstar South Africa (“Morningstar”) as a provider to assist with its unit trust portfolio compliance monitoring.
According to Deputy Executive Officer of the FSB, Jurgen Boyd, this appointment will equip the regulator to ensure that collective investment schemes operate within their prescribed asset spreading requirements and prescribed investment policies.
Morningstar will assist by running compliance filters on the underlying holdings of funds and subsequently deliver mandate compliance output to the FSB for its fund analysis and compliance monitoring.
To ensure the effectiveness of this appointment, the FSB will require collective investment schemes to provide full portfolio holdings data to Morningstar within 10 working days of each quarter end. The Registrar will communicate separately with managers in this regard.
“Morningstar has led the collection and analysis of full fund portfolio holdings in South Africa and globally based on our fundamental belief that investors need transparent and consistent analysis of holdings in order to fully understand their investments,” said Tal Nieburg, managing director for Morningstar South Africa. “By working with the FSB, we are pleased to help ensure that its portfolio compliance monitoring process will evolve to provide efficient mandate compliance transparency for the industry.”
Morningstar, Inc., a leading provider of independent investment research, is a NASDAQ- listed company with operations in 27 countries.
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