Dewvest Compliance

DEWVEST / Dewvest Compliance
5.1.1 In order to avoid such misperception from the outset, we recommend that:
5.1.1.1 Dewvest take extra care to avoid inadvertently giving advice in
respect of the investment;
5.1.1.2 Dewvest provide no more than purely factual, neutral, objective and
generic information about the opportunity without taking any specific
investor’s needs and objectives, etc into account. This is due to the
fact that shares qualify as financial products and the rendering of any
advice in respect of shares would qualify as “financial services” for
which a FSP license would be required.
5.2 The definition of “intermediary service” in FAIS is incredibly wide and there is a
lot of debate about what it actually covers.
5.2.1 In order to avoid being characterised as an intermediary under this Act, we
recommend that:
5.2.1.1 Dewvest should avoid activities such as, for example, assisting
investors to complete subscription forms and/or generally concluding
the investment process.
5.2.1.2 Dewvest should not extend their role beyond merely making the
investment opportunity known to investors, and
5.2.1.3 Dewvest should not be seen as acting as an agent or go between of
any of the parties involved.
5.3 The reference to the investment opportunity as a “Fund” may create the
impression that the opportunity is structured as a collective investment scheme
(“CIS”) as contemplated in the Collective Investment Schemes Control Act 45 of
2002 (“CISCA”). CIS’s generally involve an investor acquiring an interest in a
portfolio of assets through a participatory interest (ie the investor actually
becomes beneficially entitled to the CIS’s assets in proportion to his/her
participatory interests.
5.4 We do not understand the Dewvest fund opportunities to work in this manner.
Rather our understanding is that investors will acquire ordinary shares that will
not give them direct beneficial interest in the company’s assets. The investment
will thus not qualify as a CIS.
5.4.1 It is however not inconceivable that the investment may, to the FSB,
appear to be similar to a CIS. For this reason, we recommend that:
5.4.1.1 Dewvest, in all materials relating to the opportunity, explicitly state
that the various companies and/or funds are not CISs regulated
under CISCA.