South Africa’s financial regulators have announced new rules allowing fund managers to hold 100% of their portfolios in foreign assets under ring-fenced mandates. The change comes as part of a broader regulatory update aimed at improving transparency and flexibility in the financial sector.
The South African Financial Services Conduct Authority (FSCA) confirmed the policy shift, which applies to both local and international fund managers operating within the country. Under the new framework, funds can now be fully invested in foreign assets without restrictions, provided they meet specific regulatory criteria. This includes compliance with anti-money laundering laws and investor protection standards.
The move follows a series of discussions between the FSCA and industry stakeholders, including fund managers and financial institutions. Officials stated the policy aims to enhance market competitiveness and attract foreign investment. It also aligns with global trends toward more flexible financial regulations.
This development comes after years of debate over the limitations on foreign asset ownership in South African funds. Previously, there were restrictions on the percentage of foreign assets that could be held, which some industry players argued hindered growth and diversification. The new policy is expected to streamline operations for fund managers and improve access to international markets.
The change is part of a wider effort to modernize South Africa’s financial regulations and support economic growth. It reflects the government’s ongoing push to create a more attractive investment environment, particularly in the wake of economic challenges and global market shifts.
