Financial Institutions Amendment Act
STAATSKOERANT VAN DIE REPUBLIEK VAN SUID-AFRIKA
REPUBLIC OF SOUTH AFRICA
,. '
GOVERNMENT GAZETTE
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KAAP.STAD, 20MEI1988 . .
CAPE TOWN, 20 MAY 1988 No. 11313
KANTOOR VAN DIE STAATSPRESIDENT STATE PRESIDENT'S OFFICE
No.987. 20Mei 1988 No. 987. 20May1988
Hierby word bekend gemaak dat die Staatspresident sy goedkeuring geheg het aan die onderstaande Wet wat hierby ter algemene inligting gepubliseer word:-
- 51 van 1988: Wysigingswet op Finansiele Instellings, 1988.
It is hereby notified that the State President has assented to the following Act which is hereby published for general information:-
No. 51 of 1988: Financial Institutions Amendment Act, 1988.
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 uneven numbered pages as the other language is printed on even numbered pages.
GOVERNMENTGAZETIE, 20 MAY 1988 No.l1313 3
FINANCIAL INSTITUTIONS AMENDMENT ACf, 1988 ·Act No. 51, 1988
GENERAL EXPLANATORY NOTE:
[ ] Words in bold type in square brackets indicate omissions from . existing enactments.
Words underlined with solid line indicate insertions in existing enactments.
ACT To amend the Insurance Act, 1943, so as to authorize the Regis·
trar of Insurance to delegate or assign any power or duty as· signed to him by the said Act to an officer or employee in the public service; and to further regulate the compulsory Invest· ment by insurers in certain kinds of assets; to amend the Pension Funds Act, 1956, so as to substitute the definition of "dependant"; to authorize the Registrar of Pension Funds to delegate or assign any power or duty assigned to him by the said Act to an officer or employee in the public service; to add certain Insurance policies to the classes of assets In which a registered fund shall hold a minimum percentage of the ag· gregate value of all the assets of the fund; and to further regulate the disposition of pension benefits upon the death of a member of a registered fund; to amend the Friendly Socie· ties Act, 1956, so as to authorize the Registrar of Friendly Societies to delegate or assign any power or duty assigned to him by the said Act to an officer or employee in the public service; to amend the Unit Trusts Control Act, 1981, so as to substitute the definitions of "licensed stock exchange", "rec· ognized stock exchange" and "securities"; to authorize the Registrar of Unit Trust Companies to delegate or assign any power or duty assigned to him under the said Act to an of· fleer or employee in the public service; to further define the nature of and to increase the amount of share capital and non-distributable reserves to be held by management com· panies of unit trust schemes; to further regulate the powers of the said Registrar in regard to the registration of manage· ment companies of unit trust schemes; to increase the mini· mum amount of investment of a management company in a unit portfolio and to extend the powers of the said Registrar in regard to such amount; and to prevent a close corporation
· . from acting as trustee of a unit trust scheme; to amend the Participation Bonds Act,. 1981, so as to empower the said Registrar to impose further conditions in regard to certain schemes; to . grant certain powers in regard to advertise· ments, brochures and other similar documents to the said Registrar; and to create a certain offence relating to ad- vertisements, brochures and other similar documents; to amend the Inspection of Financial Institutions Act, 1984, and the Financial Institutions (Investment of Funds) Act, 1984, so as to make the provisions of the said Acts applicable to close corporations; to amend the Stock Exchanges Control Act, 1985, so as to substitute the definitions of "Registrar" and "securities"; to provide for the designation of a Regis-
GOVERNMENT GAZETIE, 20 MAY 1988 No.11313 5
FINANCIAL INSTITUTIONS AMENDMENT ACT, 1988
trar and Deputy Registrar of Stock Exchanges; to authorize 'the said Registrar to delegate or assign any power or duty as- signed to or imposed upon him by or under the said Act to an officer or employee in the public service; to substitute or delete certain expressions; to empower the said Registrar to allow the publication of particulars of securities outside the Republic; to provide for the determination of the date on
. which certain rules shall come into operation; to authorize a stock-broker to· sell certain securities held by him or which are in his custody; and to authorize the president of a stock exchange to sign certain forms on behalf of a registered own- er of securities; and to provide for matters connected there- with.
(Afrikaans text signed by the State President.) (Assented to 5 May 1988.)
BE IT ENACfED by the State President and the Parliament of the Republic of South Africa, as follows:-
Act No. 51, 1988
1. The following section is hereby inserted in the Insurance Insertion of section Act, 1943, after section 2B: 2CinAct27of
1943. 5 "Delegation
of powers and assign- mentofdu-
2C. The Registrar may, subject to such conditions as he may determine, delegate or assign any power or duty assigned to him by this Act to an officer or employee in the public service, but shall not thereby be divested or relieved of a power or duty so del-
. ega ted or assigned.". 10
15
20
25
30
35
· ties.
2. Section 17 of the Insurance Act, 1943, is hereby amended Amendment of by the substitution for subsection (2) of the following subsection: section 17 of
Act 27 of 1943, "(2) [(a)] The assets referred to in subsection (1) (b) assubstitutedby
shall, subject to the provisions of subsections (2A) and section 12of (3), include assets of the kinds mentioned in Part I of Act 10 of 1965 the Third Schedule ·having an aggregate value not less ::!:~n~r by than- · Act 41 of 1966, ·
(i) thirty-three per cent of the amount of net liabilities section 2 of · referred to in subsection (1) (b), excluding such Act91of1972,
• section 6 of net liabilities in respect of long-term msurance Act 101 of 1976, business carried on with pension funds and retire- section 3 of ment annuity funds; [and] Act 94 of 1977,
(ii) subject to any exemption under section 18ter fifty- section 2 of ,.,....-:...---::-.,..,,...:.--....,......,,.,..--.-.--~ Act 80 of 1978, three per cent of the amount of the said net liabili- section 4 of ties in respect of long-term insurance business car- Act 103 of 1979, ried on with pension funds and retirement annuity section 2 of funds, [but subject to any exemption under section Act.36 ofl981, 18 l I d. h 1. b'l' . . f sect1on 1 of ter exc u mg sue net 1a 1 ttles m respect o Act 82 of 1982 long-term insurance business carried on under and section 4 of policies referred to in paragraph (j) of subsection Act 86 of 1984. (1) of section 19 of the Pension Funds Act, 1956 (Act No. 24 of 1956); and
(iii) one hundred per cent of the· amount of the said net liabilities in respect of long-term insurance busi- ness carried on under policies referred to in para- graph (j) of subsection (1) of section 19 of the Pen· sion Funds Act, 1956.".
3. Section 1 of the Pension Funds Act, 1956, is hereby amended by the substitution for the definition of "dependant" of
40 the following definition:
Amendment of. section 1 of Act 24 of 1956, as amended by
GOVERNMENTGAZETIE,20MAY1988 No.l1313 7
FINANCIAL INSTITUTIONS AMENDMENT ACT, 1988 Act No. 51; 1988
"'dependant', in relation to a member, means- section 21 of (a) a person [considered by the person ·managing the Act 101 of1976,
section 9 of business of the fund concerned as being in fact de· Act 94 of 1977, pendent on the member for maintenance, regard· section 10 of less of whether or not] in ·respect of whom the Act 80 of 1978 5
b. · ) 11 )' bl f [ ] · and section 38 of mem er 1s ega y 1a e or the mamtenance [of Act 99 of 1980.
10
15
20
such person]; ~ · (b) [and Includes] a person [who is in fact not depen-
dent on the member] in respect of whom the mem· ber is not legally liable for maintenance, if such person [is]- (i) was upon the death of the member in fact de-
pendent on the member for maintenance; or [(i) the spouse of the member, including a party to . a customary union according to Black law and
custom or to a union recognized as a marriage under the tenets of any Asiatic religion; or]
(ii) a child or descendant of a child of the member . or the spouse of such child or descendant;
[who in accordance with the rules of the fund may become entitled to a benefit] ·
(c) a person in respect of.whom the member would have become legally liable for maintenance, had the member not died;".
25 4. The following section is hereby inserted in the Pension Insertion of Funds Act, 1956, after section 3: section 3A in
. . . . Act24 of 1956. "Delegation 3A. The registrar may, subject to such conditions
·of powers · h d · d I · ·and assign- as e may etermme, e egate or ass1gn any power ment of du- or duty assigned to him by this Act to an officer or
30 ties. . employee in the public service, but shall not thereby be divested or relieved of a power or duty so del- egated or assigned.".
5. Section 19 of the Pension Funds Act, 1956, is .hereby amended- . .
35 (a) by the addition to subsection (1) of the following para· graph:
"(j) policies issued to the fund concerned b an insurer lawfully carrying on long-term insurance business within the meaning of the Insurance Act, 1943
40 (Act No. 27 of 1943)- .·· · (aa) under which the extent of the benefits is to be
calculated with reference to the market value of the insurer's assets of the classes mentioned in paragraphs (a) to (i) ofthis subsection; and
45 (bb)which the registrar has approved on such con- ditions as he may determine."; and
. (b) by the substitution for subsection (2) of the following subsection: .. ·
"(2) For the purposes of subsection (1), the aggre- 50 gate value of the assets of a fund shall not include any
policies of insurance (other than policies mentioned in paragraph (j) of subsection (1)) issued by a person law- fully carrying on insurance business within the meaning of the Insurance Act, 1943 (Act No. 27 of 1943).".
Amendment of section 19 of Act 24 of1956, as amended by section 13 of Act 80 of 1959, section 9 of Act 58 of 1966, section 1 of Act 80 of 1969, section 2 of Act 23 of 1970, section 7 of Act 91 of 1972, section 23 of Act 101 of 1976, section 11 of Act 94 of 1977, section 11 of Act 80 of1978, section 14 of Act 103 of 1979, section 39 of Act 99 of 1980, section 14 of Act 82 of 1982, section 20 of Act 46 of 1984, section 17 of Act 86 of 1984 and section 11 of Act 50 of 1986.
55 6. Section 37C of the Pension Funds Act, 1956, amended-
is hereby. Amendmentof section 37C of
( a) by the insertion after paragraph (b) of the following paragraph:
Act 24 of 1956, as inserted by section 24 of
GOVERNMENT GAZETTE, 20MA Y 1988 No.11313 9
FINANCIAL INSTITUTIONS AMENDMENT ACf,l988 Act No. 51, 1988
.5
10
15
20
(b)
"(bA) If the fund within .twelve months of the death of the member becomes aware of or traces a depend- ant or dependants of the member, and the member has designated in writing to . the fund a nominee who is not a dependant of the member; to receive the benefit......: · . ·
(i) so much of the benefit as is, in the opinion of ·the person managing the business of the fund, required for the maintenance of the depend- ant or dependants, shall be paid to such de- pendant or dependants; and
(ii) the balance of the benefit shall, subject to the proviso to paragraph (b), be paid to the nomi- nee."; and . ·
by the ad"ditiin of the following subsection, the existing section becoming subsection (1): . .
" 2 For the u ose of this section, a a ment b a registered fund to a dependant shall be deemed to in- clude a payment made by the fund to a trustee contem- plated in the Trust Moneys Protection Act, 1934 (Act No. 34 of 1934), for the benefit of a dependant contem- plated in this section.".
7. The following section is hereby inserted in the Friendly So- cieties Act, 1956, after section 4: . .
25 "Delegation · 4A. The registrar may, ~ubject t~ such conditions as ofpowers h d · d I · and assign- e may etermme, e egate or assign any power or ment of du- duty assigned to him by this Act to an officer or em- ties. ployee in the public service, but shall not thereby be
divested or relieved of a power or duty so delegated or 30 assigned.".
8. Section 1 of the Unit Trusts Co~roi' Act, 1981, is hereby amended- .
(a) by the substitution for the definition of "licensed stock exchange" of the following definition:
35 "'licensed stock exchange' means a stock exchange li- censed under the Stock Exchanges Control Act, [1947] 1985 (Act No. [7] 1 of [1947] 1985);";
(b) by the substtiu'tion for the definition ~recognized stock exchange" of the following definition:
40 "'recognized stock exchange' means a stock exchange licensed under· the Stock' Exchanges Control Act,
. [1947] 1985 (Act No. 1 of 1985), or a stock ex- change outside the Republic recognized by the registrar for the purposes of this Act;"; and
45 · (c) by the substitution for the definition of "securities" of the following definition: · "'securities' means shares, stock, units in a unit trust
scheme in property shares, debentures, debenture stock and debenture bonds, and includes unse-
50 · cured notes, whether or not they have inherent op· tion rights or are convertible;".
Act 101 of 1976 and substituted by section 41 of .. Act 99 of 1980.
Insertion of section 4A in Act 25 of 1956.
Amendment of section 1 of Act 54 of 1981.
9. The following section is hereby inserted in the Unit Trusts Insertion of Control Act, 1981, after section 2: section 2A in
Act 54 of 1981. "Delegation
55 ofpowers and assign- mentofdu- ties.
2A. The registrar may, subject to such conditions as he may determine, delegat~ or assign any power or duty assigned tohim under this Act to an officer or employee. in the public service, but shall not thereby be divested or relieved of a power or duty so delegated or assigned.".
GOVERNMENTGAZETIE, 20 MAY 1988 No.11313 11
FINANCIAL INSTifUTIONS AMENDMENT ACT, 1988 Act No. St; 1988
10. Section 3 of the Unit Trusts Control Act, 1981, is hereby Am~ndmentof amended by_the substitution for paragraph (b) of subsection (2) ~~~ff;f~~81. of the followmg paragraph: ·
"(b) has a paid-up share capital and [a capital reserve] !!2!!: 5 · distributable reserves which together amount to not
less than [R600 000] R2 000 000 actually employed or immediately available for employment in its unit trust business,". ·
11. Section 4 of the Unit Trusts Control Act, 1981, is hereby Amendment of 10 amended by the substitution in subsection (3) forthe words fol- ~ctiff~~~81 · lowing paragraph (c) of the following words: ; . ct 0 •
"he shall, subject to the provisions of ~ubsection (4) and on such conditions as he may deem fit, register the appli'Ciiirt"'iiS
·a management company and issue to it a certificate of regis- 15 tration in the prescribed .form.";
12. The following section is hereby substituted for section 9 of Sub~titution of theUnitTrustsControlAct 1981: . . sectton9of .·.
' · Act 54 of 1981. "Manage- • 9 • .(ll Every management company shall of its own ma~;~:::~ke resources have at all times invested in every unit
20 fnvestmentin portfolio an amount equal to at least 10 per cent of eve~ u.nit the value· of the underlying securities in such unit port olio. portfolio, and shall hold the units in respect of such
investment as beneficial owner: Provided that the registrar may, on application by a management com-
25 pany; determine that the' amount so invested by that company sh~ll not be required to exceed [R200 000] Rl 000 000.
2) The registrar may in his discretion at any time
30
13. Section 20 of the Unit Trusts Control Act, 1981, is hereby Am~ndmentof amended by_the substitution for paragraph (b) of subsection (1) ~~~ff;?1~~1. of the followmg paragraph: . .
"(b) a .company or institution, excluding a close corporation 35 referred to in the Close Corporations Act, 1984 (Act
No. 69 of 1984), incorporated under a special Act;".
14. The following section is hereby substituted for section 26 Substitution of of the Unit Trusts Control Act, 1981: section26of "Powers of 26. (1) In addition to the powers and duties con-
40 inspection. ferred or imposed upon him by this Act, the registrar shall have all the powers and duties conferred or im-
• posed upon him by the Inspection of Financial Insti- tutions Act, [1962] !2§i (Act No. [68] ~ of [1962] 1984). .
45 (2) 'Any reference in this Act to an inspection or ·investigation made under this section shall be con- strued as a reference· to an inspection made under the Inspection of Financial Institutions Act, [1962] 1984.". .
15. Section 29 of the Unit Trusts Control Act;· 1981, is hereby amended by the substitution for paragraph (b) of subsection (2) of the following paragraph: . · ·
"(b) has a paid-up share capital and [a capital reserve] non- distributable reserves which together amount to not
55 less than [R1 000 000] R2 000 000 actually employed or immediately available for employment in its unit trust business; and".
Act 54 of 1981.
Amendment of section 29 of Act 54 of 1981.
GOVERNMENT GAZETTE, 20 MAY 1988 No.11313 13
FINANCIAL INSTITUTIONS AMENDMENT ACT, 1988 Act No. 51, 1988
5
16. Section 30 of the Unit Trusts Control Act, 1981, is hereby amended by the substitution in subsection (3) for the words fol- lowing paragraph (d) of the following words:
"he shall, on such conditions as he may deem fit, register the applicant as a management company in property shares and issue to it a certificate of registration in the prescribed form/'.
Amendment of section 30 of Act 54 of 1981.
17. Section 39 of the Unit Trusts Control Act, 1981, is hereby Amendment of ·amended by the substitution for subsection (3) of the following section39of
10 subsection: Act 54 of 1981. "(3) In the application of section 427 (2) of the said Act
in respect of a management company, section 346 (4) (a) shall be construed as if the words 'or to the Registrar of Unit Trust Companies appointed under· the Unit Trusts
15 Control Act, [1947] 1981', were inserted after the words 'shall be lodged with theMaster' in that section.". ·
18. Section 10 of the Participation Bonds Act, 1981, is hereby Am~ndmentof amended by the substitution for the words preceding paragraph ~~~~; 1?1~~1 (a) of subsection (2) of the following words: . · c 0 •
20 "The rules referred to in subsection (1) shall be deemed to include any conditions imposed by the registrar under sec- tion 37 (2) (a) of the Unit Trusts Control Act, 1981 (Act No. 54 of 1981), in relation to the scheme, as well as any other conditions the registrar may from time to time impose
25 in relation to the scheme for the purposes of this Act, and shall include-".
19. The following section is hereby substituted for section 13 Substitution of of the Participation Bonds Act, 1981: · · ··· · ~~~5; ~/1~~1. "Powers of 13. (1) An inspector appointed under section 2 of
30 inspection. the Inspection of Financial· Institutions Act, [1962] 1984 (Act No. [68] 38 of [1962] 1984), may at any tiiUe' at the directionof the Registrar of Financial Institutions inspect the affairs of a scheme and of a manager and of a nominee company in relation to
35 that scheme. · · (2) The provisions of the Inspection of Financial
Institutions 'Act, [1962] 1984. shall apply in respect of an inspection carried out in terms of subsection (1).". .
40 . 20. The follo\Ving section is hereby inserted. in the Partici- Insertion of Pation Bonds Act, 1981, after section 14: section 14A in Act 55 of 1981. "Registrar's 14A. Notwithsta~din ~n bing to the contra in :;{{~~~{_e- any law contained, the registrar may, if he is of the tain ad- opinion that the terms of any advertisement, bro-
45 vertisements, ·chure or other similar document relating to a scheme :~c!~:: and proposed to be published or being published by similar docu- a manager or its authorized agent are misleading or ments; for any other reason objectionable, direct such man-
50 ager or such agent, as the· case may be, not to pub- lish or to cease the publication of the advertisement, brochure or document concerned or to effect such adjustments thereto as he may deem fit.".
21. The following section is hereby substituted for section 15 of the Participation Bonds Act, 1981:
55 "Offences. 15. Any person who- (a) contravenes or fails to comply with any provis- - ion of this Act or of a rule of a scheme with
which it is his duty to comply;
Substitution of section 15 of Act 55 of 1981.
GOVERNMENT GAZETTE, 20 MAY 1988 No.l1313 15
FINANCIAL INSTITUTIONS AMENDMENT ACf, 1988 Act No. 51, 1988
5
(b) fails to comply with a direction under section 14A,
shall be guilty of an offence and liable on conviction, if no penalty is specially prescribed in this Act for such contravention or default, to a fine not exceeding R1 000 or to imprisonment for a period not exceed- ing one year or to both such fine and such im- prisonment.".
22. Section 1 of the Inspection of Financial Institutions Act, Am7ndmentof 10 ~984,. is ?,ereby amend~d by th~. insertion after the definition of ~~~:;f~~B4,
aud1tor of the followmg defimt10n: as amended by "'company' includes a close corporation referred to in the section 106 of
Close Corporations Act, 1984 (Act No. 69 of1984);1'. Act82of1986.
23. Section 1 of the Financial Institutions (Investment of 15 Funds) Act, 1984, is hereby amended by the insertion before the
definition of "fimincial institution" of the following definition: "'com an ' includes a close corporation referred to in the
Close Corporations Act, 1984 Act No. 69 of 1984 ;".
Amendment of section 1 of Act 39 of1984.
24. Section 1 of the Stock Exchanges Control Act, 1985, is Am7ndmentof 20 hereby amended- · . section 1 of
(a) by the substitution for the definition of "Registrar" of ~c~~!J;~~Y the following definition: section 14 of "'Registrar' means the Registrar of Stock Exchanges Act50of1986.
designated under section 2;"; and 25 (b) by the addition to paragraph (ii) of the definition of
"securities" of the word "or" and the addition to the said definition of the following paragraph:
"(iii) treasury bills, bankers' acceptances, negotiable certificates of deposit issued by a banking institu-
30 tion registered under the Banks Act, 1965 (Act No. 23 of 1965), or by a mutual building society registered under the Mutual Building Societies Act, 1965 (Act No. 24 of 1965); or by a building society registered in terms of the Building' Societies
35 Act, 1986 (Act No. 82 of 1986), or any other simi- lar short-term instruments designated by the Registrar by notice. in the Gazette, or options on or
·. rights to such bills, acceptances; certificates or in- struments;''. ·
40 . 25. The following section is hereby substituted for section 2 of Substitution of the Stock Exchanges Control Act, 1985: section 2 of
2 (1) Th M. . h II d . ffi . h Act 1 of 1985. "Retistrar of • e IOJSter s a es1gnate an o cer m t e Stoc Ex· public service as Registrar of Stock Excha. nges, who changes.
shall, subject to the control of the Minister, exercis 45 all the powers and perform all the duties assigned t
or imposed upon the Registrar by or under this Act. (2) The Minister may designate an officer in the
public service as Deputy Registrar of Stock Ex- changes, who shall, subject to the control and direc-
50 . tions of the Registrar, be competent to exercise an power and perform any duty which the Registrar is permitted or required to perform.
(3) There shall be a right of appeal to the Minister against a decision of the Registrar, and such appeal
55 shall be prosecuted in the manner and within the time prescribed.".
GOVERNMENT GAZETIE, 20 MAY 1988 No.11313 17
FINANCIAL INSTITUTIONS AMENDMENT ACT, 1988 Act No. 51,1988
26. The following section is hereby inserted in the Stock Ex- Insertion of changes Control Act, 1985, after section 2: section 2A in
Act 1 of 1985. "Delegation of powers
2A. The Registrar may, subject to such conditions as he may determine, delegate or assign any power or duty assigned to or imposed upon him by or under this Act to an officer or employee in the public ser- vice, but shall not thereby be divested or relieved of a power or duty so delegated or assigned.".
5 and assign-mentofdu- ties:
27. Section 3 of the Stock Exchanges· Control Act, 1985, is 10 hereby amended-
( a) by the substitution for paragraph (c) of subsection (3) of the following paragraph:
"(c)· [the Electricity Supply Commission] Eskom; or"; (b) by the substitution for paragraph (v)ot:"SiibSection (3)
15 of the following paragraph: "(v) the Rand Water Board or. [the Electricity Supply
Commission] ~ or the Land and Agricultural Bank of South Africa; or"; and
(c) ·by the substitution for subparagraphs (i) and (ii) of 20 paragraph (a) of subsection (7) of the following sub-
paragraphs: · "(i) it is a regular feature of his business to buy and sell
securities on behalf of other persons or on his own account or,on behalf of other persons and on his
25 own account; [and] · (ii) he holds himself out [to members of the public] as
a person who buys and sells securities;".
Amendment of section3 of Act 1 of 1985, as amended by section 15 of Act 50 of 1986.
28. Section 6 of the Stock Exchanges Control Act, 1985, is Amendmentof hereby amended by the addition of the following subsection: section 6 of
30 " 3 Notwithstandin the rovisions of subsection 1 , the Act 1 of 1985. Registrar may, subject to such conditions as he may deter mine from time to time, authorize any other person to ente into or carry on a scheme or arrangement in pursuance o which particulars are published outside the Republic of se-
35 curities which such other person desires to buy or to sell.".
29. Section 12 of the Stock Exchanges Control Act,. 1985, is Amendment of · her~ by amend~d by the substitution for subsection (5) of t~e fol- ~~f~/f9~~. lowmg subsectiOn: .
" 5 (a) No addition to or alteration other than a sus en- 40 sion) of the rules of an association which is the holde
· of a stock exchange licence shall be valid unless it has been approved by the Registrar, and if he approves thereof, such addition or alteration shall come into op- . eration on a date mentioned in the approval.
45 (b) If the Registrar does not disapprove of an addition to or alteration of the rules referred to in paragraph (a) within a period of two months after the expiry of. the period referred to in subsection (7), he shall be deemed to have approved thereof, and such addition or alter-
50 . ation shall come into operation on the day immediately following upon the date of expiry of ·the aforesaid period of two months.".
30; Section 22 of the Stock Exchanges Control Act, 1985, is hereby amended-
55 (a) by the substitution for paragraph (b) of subsection (2) of the following paragraph:
"(b) sell for the purchaser's account so much of any other securities belonging to. the purchaser and held by or in the custody of the stock-Qroker or so
Amendment of section 22 of Act 1 of 1985.
GOVERNMENT GAZETTE, 20 MAY 1988 No.11313 19
FINANCIAL INSTITUTIONS AMENDMENT ACT, 1988 Act No. 51, 1988
much of any other securities to be delivered to the' stock-broker in respect of any transaction in con- nection with securities previously entered into on behalf of the purchaser as may be necessary to rea-
5 lize an amount equal to the amount still owing, after the sale of securities in terms of paragraph (a), in respect of the securities purchased on behalf of the purchaser.";
(b) by the substitution for paragraph (b) of subsection (3) 10 of the following paragraph:
"(b) sell for the purchaser's account so much of any other securities belonging to the purchaser and held by or in the custody of the stock-broker or so much of any other securities to be delivered to the
15 stock-broker in respect of any transaction in con- nection with securities previously entered into on behalf of the purchaser as may be necessary to real- ize an amount equal to the amount still owing, after the sale of securities in terms of paragraph
20 (a), in respect of the securities purchased on behalf of the purchaser."; and
(c) by the substitution for paragraph (b) of subsection (4) of the following paragraph:
"(b) sell for the purchaser's account so much of any 25 other securities belonging to the purchaser and
held by or in the custody of the stock-broker or so much of any other securities to be delivered to the stock-broker in respect of any transaction in con- nection with securities previously entered into on
30 behalf of the purchaser as may be necessary to realize an amount equal to the amount still owing, after the sale of securities in terms of paragraph (a), in respect of the securities purchased on behalf of the purchaser.".
· 35 31. Section 23 of the Stock Exchanges Control Act, 1985, is Amendment of hereby amended by the substitution for paragraph (b) of subsec- ~c:ifnfi9~~ tion (2) of the following paragraph: c 0 •
"(b) other securities belonging to the purchaser and held by or in the custody of the stock-broker or so much of
40 other securities to be delivered to the stock-broker in respect of a transaction in connection with securities previously entered into on behalf of such person,".
32. The following section is hereby inserted in the Stock Ex- changes Control Act, 1985, after section 23:
45 "Sig'!ing of certam forms on behalf of registered owner of se· curities.
50
23A. If securities were sold by a stock-broker in compliance with the provisions of sections 22. or 23 and the stock-broker is unable to obtain a form pre- scribed by any Jaw for the purposes of transferring such securities to the purchaser thereof and duly signed by the registered owner of such securities or his nominee, the president may sign such form on behalf of such owner.".
33. This Act shall be called the Financial Institutions Amend- ment Act, 1988.
55 (2) Sections 3 and 6 (a) shall come into operation on a date fixed by the State President by proclamation in the Gazette.
Insertion of section 23A in Act 1 of 1985.
Short title and commence- ment.