South Africa threatens action as hedge funds slow to enroll

South Africa’s Financial Services Board is threatening to take regulatory and enforcement action against hedge funds that fail to register as collective investments.

“The Registrar of Collective Investment Schemes is concerned that to date, no application has been received from hedge fund operators, almost three months since the declaration came into effect,” the FSB said in an e-mailed statement on Monday.

The funds have until Sept. 30 to apply for registration in order to continue operating, the Pretoria-based regulator said. The new regulatory regime will make hedge funds subject to legislation that govern other investment funds, including investor protections and risk management measures. The country has 107 hedge funds with about 57 billion ($4.7 billion) of assets, according to the National Treasury.

Read more: South Africa Threatens Action as Hedge Funds Slow to Enroll – Bloomberg Business