Collective Investment Schemes
CODE SERIES FSSOO STATEMENT 803:
THE MEASUREMENT OF THE ACCESS TO FINANCIAL SERVICES ELEMENT OF BROADBASED BLACK ECONOMIC EMPOWERMENT AS IT RELATES TO COLLECTIVE INVESTMENT SCHEMES

Collective Investment Schemes do not represent an ideal solution to cater for the savings requirements of consumers earning under the tax threshold, as typical CIS products do not fit the financial requirements of lower income consumers.

For this reason an access target will not be applied to measured entities distribution of CIS product under this Code. As a sign of commitment however, to broaden access to savings for the lower end of the market, the savings and investment industry agrees to:

  • Continue to distribute the current subsidised Fundisa product that is aimed at enabling low income consumers to save for tertiary education in a subsidised manner.

  • Endeavour to increase the allocation of bonus money to the underlying bonus pool, which subsidises the product. The size of this subsidy is seen as a constraint to the overall penetration levels for this product.

  • Endeavour to increase the scope of application of the Fundisa offering, to include other social imperatives such as housing.

  • Expand the current distribution of Fundisa through additional marketing of the product offering to low income consumers via various channels.

  • Investigate together with the sectors' regulators, possible mechanisms to remove certain regulatory obstacles to the distribution of Fundisa.

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