Outline the structure of the collective investment industry
8999 Outline the structure of the collective investment industry
Status was "Reregistered" 2004-12-02 2007-02-21 SAQA 1657/04
243147 Outline the structure of the collective investment industry Level 3 NQF Level 03 2
This unit standard provides a broad introduction to the collective investment industry. It builds on the unit standard `Describe collective investment schemes`.
Identifying the main elements in the structure of the collective investment industry.
Describing the structure of a Collective Investment Schemes Manager.
Explaining how the collective investment industry is regulated.
Identifying the Act that applies to the collective investment industry.
There is open access to this unit standard. The learner should be competent in Communication, Financial Literacy and Mathematical Literacy at NQF Level 2.
The main elements in the industry include, but are not limited to the Collective Investment Schemes Manager, trustee/custodian and portfolio manager.
Identify the main elements in the structure of the unit trust industry.
1. The management company, trustee, asset manager are named as the main elements of the industry with examples of each.
2. The relationship between the elements is described according to their purpose statement portfolio.
3. The purpose of a trust deed is explained and the main provisions of a trust deed are identified with reference to a trust deed for a selected unit trust fund.
Describe the structure of a unit trust management company.
1. The structure of a unit trust management company is illustrated graphically.
2. The functions of a unit trust management company are identified with reference to a specific management company.
Explain how the unit trust industry is regulated.
1. The Association of Unit Trusts (AUT) is identified as the industry's representative body and its functions are explained in relation to the regulation of the industry.
2. The role and functions of the Financial Services Board are explained as they apply to the unit trust industry.
3. Reasons are given to explain why the industry is so highly regulated with examples of the consequences of an unregulated environment.
Identify legislation that applies to the unit trust industry.
1. The Unit Trust Control Act no 54 of 1981, Unit Trust Control Amendment Act no 12 of 1998. And the collective Investment Schemes Bill/Act are named as the legislation that controls the unit trust industry and the main points addressed in the Acts are noted in a mind map.
2. The basic regulations are listed that apply to a fund mandate.
3. Amendments are identified that have been made to the different legislation in the last two years.
4. The manner in which industry regulation protects the investor is understood and explained with reference to unit trusts control requirements, legalities governing unit trusts, minimum cash holdings, limitations on equity, gold weighting, money market limitations, statutory holdings, trustee and management company relationship, all securities registered in the name of the trust, asset swop limitations, regulations relating to pension funds, market capitalisation and derivative exposure.
Identify the main elements in the structure of a collective investment scheme.
1. The Collective Investment Scheme Manager, trustee, custodian and portfolio manager are named as the main elements of the industry with examples of each.
2. The relationship between the elements is described according to their purpose.
3. The purpose of a deed or document of incorporation is explained and the main provisions of the documents are identified with reference to a deed or document of incorporation for a selected collective investment scheme portfolio.
Describe the structure of a Collective Investment Scheme Manager.
1. The structure of a Collective Investment Scheme Manager is illustrated graphically.
2. The functions of a Collective Investment Scheme Manager are identified with reference to a specific Collective Investment Scheme Manager.
Explain how the collective investment industry is regulated.
1. The Association of Collective Investments (ACI) is identified as the industry`s representative body and its functions are explained in relation to the regulation of the industry.
2. The role and functions of the Financial Services Board (FSB) are explained as they apply to the collective investment industry.
Identify the Act that applies to the collective investment industry.
1. The Collective Investment Schemes Control Act, 45 of 2002 (CISCA) is named as the legislation that controls the collective investment industry and the main points addressed in the Act are recorded graphically.
2. Amendments to the Act are identified and an indication is given of why the change was necessary.
3. The purpose of industry regulation is explained with reference to protection of the investor.
UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE
UNIT STANDARD DEVELOPMENTAL OUTCOME
UNIT STANDARD LINKAGES
Learners can use visual and mathematical communication skills when graphically depicting the structure of a Collective Investment Schemes Manager graphically.
Learners are able to explore a variety of strategies of learning more effectively by using a graphic organiser to depict legislation affecting the collective investment industry.
UNIT STANDARD ASSESSOR CRITERIA
This unit standard has been replaced by unit standard 243147, which is ' Outline the structure of the collective investment industry ', Level 3, 2 credits.
Core 20638	 National Certificate: Collective Investment Schemes Level 4 NQF Level 04 Passed the End Date -