The extended saga of participation mortgage bond company Fedbond is drawing to a close. The Financial Services Board (FSB), which initially agreed to joint management of Fedbond, has withdrawn appeals to the Supreme Court of Appeal against earlier High Court decisions to place Fedbond under curatorship.
However, the FSB instruction that has prevented Fedbond from taking in any new funds for the past three years remains in place, despite the fact that Fedbond has continued to make the full and correct interest payments to investors throughout the period, and since last year has been paying out all matured investments on application by investors.
Dube Tshidi, FSB deputy executive in charge of collective investments, says the ban on new investments will be lifted as soon as Fedbond has at least 75 percent of its assets in participation mortgage bonds, reducing its direct property holdings.
Currently, Fedbond has about 35 percent of its assets in direct property holdings.