Supervision of Financial Institutions Rationalisation Act 32 of 1996
REP'tJBLIC OF SOUTH AFRICA
GOVERNMENT GAZETTE
STAATSKOERANT
VAN DIE REPUBLIEK VAN SUID-AFRIKA
Registered at the Post Office as a Newspaper As 'n Nuusblad by die Poskantoor Geregistreer
VoL. 372 CAPE TOWN, 26 JUNE 1996
KAAPSTAD, 26 JUNIE 1996 No. 17278
PRESIDENT'S OFFICE KANTOOR VAN DIE PRESIDENT
No. 1058. 26 June 1996 No. 1058. 26 Junie 1996
It is hereby notified that the President has assented to the following Act which is hereby published for general infor- mation:-
tp. 32 of 1996: Supervision of Financial Institutions Rationa- lisation Act, 1996.
Hierby word bekend gemaak dat die President sy goed- keuring geheg bet aan die onderstaande Wet wat hierby ter a]gemene inligting gepubliseer word:-
No. 32 van 1996: Wet op die Rasionalisering van Toesig- . houding oor Finansiele Instellings, 1996.
Please note that most Acts are published in English and another South African official language. Currently we only have capacity to publish the English versions. This means that this document will only contain even numbered pages as the other language is
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2 No. 17278
Act No. 32, 1996
GOVERNMENT GAZETfE, 26 JUNE 19!?6.
SUPERVISION OF FINANCIAL INSTITUTIONS RATIONALISATION ACf, 1996
ACT To repeal certain laws relating to financial institutions applying in the territories of the former Transkei, Bophuthatswana, Vendaa.rid Ciskei; to apply the laws of the Republic relating to the regulation and control of financial institutions to institutions registered in terms of the laws so repealed; and to extend the operation of the laws so applied to the whole of the national territory of the Republic; and to provide for matters connected therewith.
(English text signed by the President.) (Assented to 21 June 1996.)
BE IT ENACTED by the Parliament of the Republic of South Africa, as follows:- Definitions
1. In this Act, unless the context indicates otherwise- (i) "Board" means the Financial Services Board, established by section 2 of the 5
Finilncial Ser\lices Board Act; (vi) (ii) "Constitution" means the Constitution of the Republic of South Africa, 1993
(Act No. 200 of 1993); (iii) (iii) "effective date" means the date of commencement of this Act; (i) (iv) "executive officer" means the executive officer of the Board referred to in 10
section 13 of the Financial Services Board Act; (viii) (v) "financial institution" means-
(a) any institution of the nature of a financial institution referred to in the Financial Services Board Act;
(b) any institution of the nature of a bank as defined in section 1 (1) of 15 the Banks Act, 1990 (Act No. 94 of 1990), or of the nature of a mutual bank as defined in section I (I) of the Mutual Banks Act, 1993 (Act No. 124 of 1993),
and which immediately prior to the effective date carried on business in, or was regulated under any of the Jaws of, the formerTranskei, Bophuthatswana, 20 Venda or Ciskei repealed by section 2; (ii)
(vi) "Financial Services Board Act" means the Financial Services Board Act, 1990 (Act No. 97 of 1990); (x)
(vii) "Minister" means the Minister of Finance; (v) (viii) "prescribed", in relation to a financial institution- 25
(a) referred to in paragraph (a) of the definition of "financial institution", means prescribed by the Board;
(b) referred to in paragraph (b) of the definition of "financial institution", means prescribed by the Registrar referred to in paragraph (b) of the definition of "Registrar", 30
with the concurrence of the Minister, by regulation in the Gazette; (ix) (ix) "Registrar". in relation to a financial institution-
( a) referred to in paragraph (a) of the definition of "financial institution", means the executive officer;
(b) referred to in paragraph (b) of the definition of "financial 35 institution", means the Registrar of Banks, referred to in section 1 of the Banks Act, 1990; (vii)
(x) "repealed law" means a Jaw repealed by section 2(1); (iv)
4 No. 17278 GOVERNMENT GAZETTE, 26JUNE 1996
Act No. 32, 1996 SUPERVISION OF FINANCIAL INSTITUTIONS RATIONALISATION ACT, 1996
(xi) "RSA financial services law" means any law relating to the regulation or supervision of any financial institution, or any law in terms of which such institution carries on business, referred to in Schedule 2. (xi)
Repeal of laws, and savings
2. (1) Subject to the provisions of this Act, the laws referred to in Schedule 1 are 5 hereby repealed.
(2) Subject to subsection (3) anything done in terms of any repealed law, excluding the establishment of any office or the appointment of any person, committee or board charged with regulatory or supervisory functions in respect of financial institutions, shall be deemed to have been done in terms of the corresponding RSA financial services I 0 law.
(3) Any right to carry on the business of a financial institution in terms of subsection (2), except in the case of an insurer which is a subsidiary of an insurer registered in the Republic, may be exercised only in the territory in which the relevant repealed law in terms of which such right to carry on such business was acquired, applied immediately 15 before the effective date.
( 4) (a) A financial institution referred to in subsection (3) which intends to carry on business also in that part of the Republic outside the relevant territory referred to in that subsection, may in the prescribed manner and on payment of the prescribed fee apply to the Registrar for permission to carry on business also in that part of the Republic. 20
(b) The Registrar shall in considering an application submitted to him or her in terms of paragraph (a) have due regard to the public interest, the interests of existing financial institutions, the interests of the users of the financial services offered by them, and the conditions and requirements subject to which the right to carry on the business concerned is granted to any person in terms of the relevant RSA financial services law, 25 and may, if he or she deems it necessary, impose reasonable conditions and lay down reasonable requirements with which the applicant shall comply before the permission applied for is granted.
(c) If the Registrar is satisfied that an applicant has complied with any such conditions and requirements he or she shall- 30
(i) by notice in the Gazette make known the fact that the permission which had been applied for has been granted, with effect from a date determined in the notice;
(ii) inform the applicant accordingly; and (iii) cause the necessary endorsements to be made in or on the relevant official 35
records and documents. (5) (a) The President may, after consultation with the Minister, by proclamation in the
Gazette, repeal or amend, with retrospective effect, any law not mentioned in Schedule 1, which applies in any of the former territories of the Transkei, Bophuthatswana, Venda and Ciskei, and which relates to the financial or investment services industry, the 40 existence of which had come to light at any time subsequent to the date of the passing of this Act, and the repeal or amendment of which is necessary for the effective application of this Act and the achievement of its objects: Provided that such repeal or amendment shall not adversely affect any permission or authority granted in terms of the law so repealed or amended. 45
(b) The provisions of paragraphs (b) and (c) of section 235(7) of the Constitution shall mutatis mutandis apply to any proclamation contemplated in paragraph (a).
(6) Where any official or employee who immediately prior to the effective date was employed by any of the former states of Transkei, Bophuthatswana, Venda or Ciskei in connection with the administration of any repealed law is immediately after that date or 50 within such period thereafter as may be approved by the Board, employed by the Board, the provisions of section 15 of the Financial Services Board Act shall mutatis mutandis apply to such person, his or her pension rights, the pension fund of which he or she was a member and the pension fund of which he or she requests to become a member.
Powers of Board and Registrar in respect of financial institutions
3. (I) The Board may in terms of section 15A of the Financial Services Board Act
55
6 No. 17278
Act No. 32, 1996
GOVERNMENT GAZETfE, 26 JUNE 1996
SUPERVISION OF FINANCIAL INSTITUTIONS RATIONALISATION ACT, 1996
impose a special levy, which shall apply to the exclusion of any other levies payable by an institution in terms of section 15A, on any financial institution referred to in paragraph (a) of the definition of "financial institution"-
(a) in respect of the year in which the effective date falls, or may decide that no levies shall be payable in respect of such year; and 5
(b) in respect of any year thereafter, until permission in terms of section 2(4)(c) has been granted in respect of that institution.
(2) The Registrar may- ( a) take such steps as may be necessary for the transfer of any official documents
and records relating to financial institutions in territories in which repealed 10 laws applied, to offices in the Republic;
(b) in such manner as he or she may deem fit, including a public notice, request any financial institution to provide him or her within a specified period with such information and particulars as he or she may require for effective administration or supervision of that financial institution, and any such 15 financial institution shall within that period comply with such request;
(c) take such other administrative steps as may be necessary for the effective application of the provisions of this Act, or of any RSA financial services law in respect of financial institutions referred to in any repealed law; and
(d) with the concurrence of the Minister, grant written temporary exemption to 20 any financial institution referred to in any repealed law, subject to the conditions which he or she so determines, from any provision of a law referred to in section 4.
Application of certain laws to whole of Republic
4. The laws mentioned in Schedule 2 shall, subject to the provisions of this Act, with 25 effect from the effective date apply to the whole of the national territory of the Republic.
Short title and commencement
5. This Act shall be called the Supervision of Financial Institutions Rationalisation Act, 1996, and shall come into operation on a date fixed by the President by proclamation in the Gazette. 30
8 No. 17278
Act No. 32, 1996
No. and year of law
Act No. 27 of 1943
Act No. 20 of 1983
Act No. 24 of 1956
Act No. 68 of 1962
Act No. 23 of 1965
Act No. 27 of 1980
Act No. 28 of 1980
Act No. 22 of 1981
Act No. 39 of 1984
Act No. 15 of 1985
Decree No. 12 of 1992
Act No. 27 of 1943
Act No. 18 of 1947
Act No. 24 of 1956
Act No. 25 of 1956
Act No. 68 of 1962
Act No. 48 of 1964
Act No. 56 of 1964
Act No. 23 of 1965
Act No. 24 of 1965
Proclamation No. 28 of 1979
Act No. 61 of 1980
Act No. 39 of 1984
Act No. 35 of 1980
Act No. 54 of 1981
Act No. 35 of 1988
Act No. 13 of 1989
Act No. 14of 1989
Act No. 18 of 1989
Act No. 19 of 1989
GOVERNMENT GAZETTE, 26 JUNE 1996
SUPERVISION OF ANANCIAL INSTITUTIONS RATIONALISATION ACT, 1996
Title
SCHEDULE!
Laws repealed (Section 2(1))
Insurance Act, 1943
Insurance Amendment Act, 1983
Pension Funds Act, 1956
Inspection of Financial Institu-
tions Act, 1962
Banks Act, 1965
Transkei Building Society Act,
1980
Banks Amendment Act, 1980
Financial Institutions Amendment
Act, 1981
Financial Institutions (Investment
of Funds) Act, 1984
Financial Institutions Amendment
Act, 1985
Amendment of Insurance Act
Decree, 1992 (Decree No. 12 of
1992)
Insurance Act, 1943
Unit Trusts Control Act, 1947
Pension Funds Act, 1956
Friendly Societies Act, 1956
Inspection of Financial Institu-
tions Act, 1962
Participation Bonds Act, 1964
Stock Exchanges Control Act,
1964
Banks Act, 1965
Mutual Building Society Act,
1965
Regulations for the Licensing of
Insurance Brokers and Insurance
Sales, 1979
Building Societies Amendment
Act, 1980
Financial Institutions (Investment
of Funds), Act, 1984
Banks Amendment Act, 1980
Unit Trusts Control Act, 1981
Banks Amendment Act, 1988
Insurance Amendment Act, 1989
Financial Institutions Amendment
Act, 1989
Financial Institutions Second
Amendment Act, 1989
Insurance Second Amendment
Act, 1989
Territory in which applicable
Transkei
Transkei
Transkei
Transkei
Transkei
Transkei
Transkei
Transkei
Transkei
Transkei
Transkei
Bophuthatswana
Bophuthatswana
Bophuthatswana
Bophuthatswana
Bophuthatswana
Bophuthatswana
Bophuthatswana
Bophuthatswana
Bophuthatswana
Bophuthatswana
Bophuthatswana
Bophuthatswana
Bophuthatswana
Bophuthatswana
Bophuthatswana
Bophuthatswana
Bophuthatswana
Bophuthatswana
Bophuthatswana
10 No. 17278
Act No. 32, 1996
No. and year of law
Act No. 18 of 1991
Act No. 50 of 1992
Act No. 25 of 1993
Act No. 27 of 1943
Act No. 24 of 1956
Act No. 25 of 1956
Act No. 68 of 1962
Act No. 23 of 1965
Act No. 24 of 1965
Act No. 39 of 1984
Act No. 26 of 1987
Regulations in Regulation Gazelle
No. 13 of 1991
Proclamation No. 18 of 1991
Act No. 27 of 1943
Act No. 18 of 1947
Act No. 24 of 1956
Act No. 68 of 1962
Act No. 56 of 1964
Act No. 23 of 1965
Act No. 24 of 1965
Act No. 35 of 1985
Decree No. 8 of 1993
Decree No. 15 of 1993
Decree No. 16 of 1993
GOVERNMENT GAZETTE, 26 JUNE 1996
SUPERVISION OF FINANCIAL.!NSTITUTIONS RATIONALISATION ACT, 1996
Title Territory in which applicable
Insurance Amendment Act, 1991 Bophuthatswana
Banks Amendment Act, 1992 Bophuthatswana
Building Societies Amendment Bophuthatswana
Act, 1993
Insurance Act, 1943 Venda
Pension Funds Act, 1956 Venda
Friendly Societies Act, 1956 Venda
Inspection of Financial Institu· Venda
tions Act, 1962
Banks Act, 1965 Venda
Mutual Building Societies Act, Venda
1965
Financial Institutions (Investment Venda
of Funds) Act, 1984
Building Societies Amendment Venda
Act, 1987
Regulations relating to Deposit- Venda
taking Institutions, 1991
Deposit-taking Institutions Proc- Venda
lamation, 1991
Insurance Act, 1943 Ciskei
Unit Trusts Control Act, 1947 Ciskei
Pension Fund Act, 1956 Ciskei
Inspection of Financial Institu- Ciskei
tions Act, 1962
Stock Exchanges Control Act, Ciskei
1964
Banks Act, 1965 Ciskei
Mutual Building Societies Act, Ciskei
1965
Building Societies Amendment Ciskei Act, 1985
Pension Funds Act Decree, 1993 Ciskei
Building Societies Amendment Ciskei
Decree, 1993
Deposit-taking Institutions De- Ciskei
cree, 1993
12 No. 17278 GOVERNMENT GAZETTE, 26 JUNE 1996
Act No. 32, 1996 SUPERVISION OF FINANCIAL INSTI11Jfl0NS RATIONALISATION ACf, 1996
SCHEDULE2
Laws of the Republic which apply to the whole of the national territory of the Republic
(Section 4)
1. Insurance Act, 1943 (Act No. 27 of 1943) 2. Pension Funds Act, 1956 (Act No. 24 of 1956) 3. Friendly Societies Act, 1956 (Act No. 25 of 1956) 4. Mutual Building Societies Act, 1965 (Act No. 24 of 1965) 5. Unit Trusts Control Act, 1981 (Act No. 54 of 1981) 6. Participation Bonds Act, 1981 (Act No. 55 of 1981) 7. Inspection of Financial Institutions Act, 1984 (Act No. 38 of 1984) 8. Financial Institution (Investment of Funds) Act, 1984 (Act No. 39 of 1984) 9. Banks Act, 1990 (Act No. 94 of 1990)
10. Financial Services Board Act, 1990 (Act No. 97 of 1990) 11. Safe Deposit Securities Act, 1992 (Act No. 85 of 1992) 12. Financial Supervision of Multilateral Motor Vehicle Accidents Fund Act,
1993 (Act No.8 of 1993) 13. Mutual Banks Act, 1993 (Act No. 124 of 1993) 14. Policy Board for Financial Services and Regulation Act, 1993 (Act No. 141 of
1993) 15. Section 17 of the Financial Institutions Amendment Act, 1990 (Act No. 64 of
1990) 16. Any provision-
( a) of any Act of Parliament which amends any law or provision of a law mentioned in this Schedule; and
(b) of any regulation, notice or similar subordinate legislative or adminis- trative measure made, issued or taken in terms of any law referred to in this Schedule,
and which has on the effective date not yet come into operation.