S.L. 370.6 Art. 2Recognition of private collective investment schemes. Cap. 370.

A collective investment scheme which limits the total number of participants to fifteen persons and where the competent authority is satisfied that -

(i) the participants are close friends or relatives of the promoters;

(ii) that the scheme is essentially private in nature and purpose; and

(iii) the scheme does not qualify as a professional investor fund in terms of guidelines issued for this purpose by the competent authority, shall not be subject to a licence in terms of article 4 of the Investment Services Act, hereinafter referred to as "the Act", but shall be subject to recognition by the competent authority under these regulations:

Provided that one of the participants may be a body corporate, subject to such restrictions, requirements and conditions as laid down in guidelines issued by the competent authority in terms of article 6 of the Act.