Supervision of Financial Institutions Rationalisation Act

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on business in, or was regulated under any of the Jaws of, the formerTranskei, Bophuthatswana, 20 Venda or Ciskei repealed by section 2; (ii) (vi) "Financial Services Board Act" means the Financial Services Board Act, 1990 (Act No. 97 of 1990); (x) (vii) "Minister" means the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"financial 35 institution", means the Registrar of Banks, referred to in section 1 of the Banks Act, 1990; (vii) (x) "repealed law" means a Jaw repealed by section 2(1); (iv) 4 No. 17278 Act No. 32, 1996 GOVERNMENT GAZETTE, 26JUNE 1996 SUPERVISION OF FINANCIAL INSTITUTIONS RATIONALISATION ACT, 1996 (xi) "RSA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 law. I 0 (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; inform the applicant accordingly; and (ii) (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 55 3. (I) The Board may in terms of section 15A of the Financial Services Board Act 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) (b) 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 in respect of any year thereafter, until permission in terms of section 2(4)(c) has been granted in respect of that institution. 5 (2) The Registrar may- ( a) take such steps as may be necessary for the transfer of any official documents (b) (c) and records relating to financial institutions in territories in which repealed 10 laws applied, to offices in the Republic; 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; 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 GOVERNMENT GAZETTE, 26 JUNE 1996 SUPERVISION OF ANANCIAL INSTITUTIONS RATIONALISATION ACT, 1996 SCHEDULE! Laws repealed (Section 2(1)) No. and year of law Title Territory in which applicable 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 Insurance Act, 1943 Transkei Insurance Amendment Act, 1983 Transkei 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 Transkei Transkei Transkei Transkei Transkei Transkei Financial Institutions (Investment of Funds) Act, 1984 Transkei Financial Institutions Amendment Act, 1985 Transkei Amendment of Insurance Act Decree, 1992 (Decree No. 12 of 1992) Transkei Insurance Act, 1943 Bophuthatswana Unit Trusts Control Act, 1947 Bophuthatswana Pension Funds Act, 1956 Bophuthatswana Friendly Societies Act, 1956 Bophuthatswana Inspection of Financial Institu- tions Act, 1962 Bophuthatswana Participation Bonds Act, 1964 Bophuthatswana 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 Bophuthatswana Bophuthatswana Bophuthatswana Bophuthatswana Bophuthatswana Bophuthatswana Banks Amendment Act, 1980 Bophuthatswana Unit Trusts Control Act, 1981 Bophuthatswana Banks Amendment Act, 1988 Bophuthatswana Insurance Amendment Act, 1989 Bophuthatswana Financial Institutions Amendment Act, 1989 Bophuthatswana Financial Institutions Second Amendment Act, 1989 Insurance Second Amendment Act, 1989 Bophuthatswana Bophuthatswana 10 No. 17278 Act No. 32, 1996 GOVERNMENT GAZETTE, 26 JUNE 1996 SUPERVISION OF FINANCIAL.!NSTITUTIONS RATIONALISATION ACT, 1996 No. and year of law Title Territory in which applicable 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 Insurance Amendment Act, 1991 Bophuthatswana Banks Amendment Act, 1992 Bophuthatswana Building Societies Amendment Act, 1993 Insurance Act, 1943 Pension Funds Act, 1956 Friendly Societies Act, 1956 Inspection of Financial Institu· tions Act, 1962 Banks Act, 1965 Mutual Building Societies Act, 1965 Bophuthatswana Venda Venda Venda Venda Venda Venda Financial Institutions (Investment Venda of Funds) Act, 1984 Building Societies Amendment Act, 1987 Venda Venda Venda Ciskei Ciskei Ciskei Ciskei Ciskei Ciskei Ciskei Ciskei Regulations in Regulation Gazelle No. 13 of 1991 Regulations relating to Deposit- taking Institutions, 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 Deposit-taking Institutions Proc- lamation, 1991 Insurance Act, 1943 Unit Trusts Control Act, 1947 Pension Fund Act, 1956 Inspection of Financial Institu- tions Act, 1962 Stock Exchanges Control Act, 1964 Banks Act, 1965 Mutual Building Societies Act, 1965 Building Societies Amendment Act, 1985 Decree No. 8 of 1993 Pension Funds Act Decree, 1993 Ciskei Decree No. 15 of 1993 Decree No. 16 of 1993 Building Societies Amendment Decree, 1993 Deposit-taking Institutions De- cree, 1993 Ciskei Ciskei 12 No. 17278 Act No. 32, 1996 GOVERNMENT GAZETTE, 26 JUNE 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.