South African Reserve Bank Amendment Act

1. Section 1 of the South African Reserve Bank Act, 1989 (hereinafter referred to as the principal Act), is hereby amended- 5 (a) by the substitution for the definition of "bank" of the following definition: . " 'bank' means a bank as defined in section 1(1) of the Banks Act. 1990 (Act No. 94 of 1990), and, for the purposes of section lOA, includes a [permanent mutual building society referred to in section 4(2)(a) of·· · the Mutual Building Societies Act, 1965 (Act No. 24 of 1965) 1 mutual· 10 bank;"; - - (b) by the insertion after the definition of "Deputy Governor" of the following · . definition: · · · " 'financial instrument' means- , an securi as referred to in the definition of 'securities' in section 15 I of the Stock Exchanges Control Act, 1985 (Act No. 1 of 1985); (b) any financial instrument as defined in section l of the Financial Markets Control Act, 1989 (Act No. 55 of 1989), irrespective, in the 4 No.17039 GOVERNMENT GAZETfE, 15 MARCH 1996 Act No.2, 1996 SOUTif AFRICAN RESERVE BANK AMENDMENT ACT, 1996 case of such instrument that is an instrument creating or acknowl edging indebtedness, of the term for which it has been issued; (c) any right or other benefit in respect of or accruing to a security referred to in paragraph (a) or a financial instrument referred to in paragraph (b); and _ (d) any other instrument, right or benefit declared by the Minister by notice in the Gazette to be a financial instrument for the purposes of section 10(1)(h);"; 5 (c) by the insertion after the definition of "Minister" of the following definition: · " 'mutual bank' means a mutual bank as defined in section I (I) of the 10 Mutual Banks Act, 1993 (Act No. 124 of 1993);"; (d) by the deletion of the definition of "mutual building society"; (e) by the deletion of the definition of "Republic"; and (j) by the deletion of the definition of "territory". Substitution of section 3 of Act 90 of 1989 15

2. The following section is hereby substituted for section 3 of the principal Ac!: ' "Primary objective of Bank

3. The primary objective of the Bank shall be to protect the value of the currency of the Republic in the interest of balanced and sustainable economic growth in the Republic.". · 20 Amendment of section 4 of Act 90 of 1989, as amended by section 9 of Act 51 of 1991, section 2 of Act 10 of 1993 and section 72 of Act 129 of 1993

3. Section 4 of the principal Act is hereby amended- ( a) by the substitution for subsection (I) of the following subsection: "(I) The Bank shall be managed by a board of fourteen directors, 25 consisting of- !!!.! a Governor, three Deputy Governors (one of whom shall be designated by the [Minister] President of the Republic as Senior Deputy Governor) and three other directors, which Governor, Deputy Governors and other directors shall be appointed by the 30 [Minister] President of the Republic after consultation with the Minister and the Board; and (£1 seven directors elected by the shareholders."; · (b) by the deletion of paragraph (b) of subsection (2); and (c) by the substitution for subsection (4) of the following subsection: (a) (b) " ( 4) No person shall be appointed or elected as or remain a director- if he or she is not [a South African citizen] resident in the Republic;or if he or she is a director, officer or employee of a bank or.!! mutual [building society] bank; or - 35 40 (bA)ifhe or she is a Minister or a Deputy Minister in the Government of the Republic; or if he or she is a member of- · · (c) · (i). Parliament; or (ii) [the legislative assembly of a self-governing territory as 45 defined in section 38(1) of the National States Constitution Act, 1971 (Act No. 21 of 1971);] a provincial legislature referred to in section 125 of the Constitution. [(iii) the National Assembly referred to in section 2 of the South West African Legislative and Executive Authority Estab- 50 Iishment Proclamation, 1985 (Proclamation No. R. 101 of 1985); or (iv) the President's Council.]". 6 No. 17039 Act No.2, 1996 GOVERNMENT GAZETTE, 15 MARCH 1996 SOUTII AFRJCAN RESERVE BANK AMENDMENT ACf, 1996 Amendment of section 6 of Act 90 of1989, as amended by section 9 of Act 51 of1991

4. Section 6 of the principal Act is hereby amended by the substitution for paragraph (a) of subsection (I) of the following paragraph: "(a) in the case of the. Governor or a Deputy Governor or of a Government representative, by the appointment by the [Minister] President of the 5 Republic of another person after consultation with the Minister and the Board; and". Amendment of section 10 of Act 90 of 1989, as amended by section 3 of Act 10 of 1993

5. Sectfon 10 of the principal Act is hereby arriended- 10 (a) by the substitution for paragraph (h) of subsection (I) of the following paragraph: "(h) buy [and], sell or deal in [securities] financial instruments and, in accordance with the provisions of any law regulating the safe deposit of securities,· hold such financial instruments in safe 15 custody, or cause such financial instruments to be held in safe custody, for other persons;"; and (b) by the substitution for paragraph (v) of subsection (I) of the following paragraph: · · · · "(v) perfonn the functions assigned to the Bank by the Banks Act, 1990 20 (Act No: 94 of 1990), and the Mutual [Building Societies Act, 1965 (A.ct No. 24 of 1965)] Banks Act, 1993 (Act No: 124 of 1993).". Amendment of section 11 of Act 90 of 1989, as amended by section 5 of Act 10 or 1993 .

6. Section II of the principal Act is hereby amended by the substitution for subsection 25 (1) of the following subsection: "(I) The Bank may appoint inspectors (in either apennanent or a temporary capacity) to carry out inspections of the affairs, or of any part thereof, of a bank [as defined in the Banks Act, 1990 (Act No. 94 of 1990),] or a mutual [building society as defined in the Mutual Building Societies Act, 1965 (Act No. 24 of 30 · · 1965)] bank."; · · Substitution of section 12 of Act 90 of 1989, as substituted by section 6 of Act 10 of . 1993 . . '. . .

7. The following section is hereby substituted for section 12 of the principal Act: "Inspection of affairs of person, partnership, ·close corporation, 35 company· or other juristic person not registered as bank or mutual bank · 12. (I) If th·e Governor or a Deputy Governor has reason to suspect that any person, 'partnership, close corporation, company or other juristic person who or which is not registered in tenns of the Banks Act, 1990 (Act No. 94 40 · of 1990), as a bank or in tenns of the [Mutual Building Societies Act, 1965 (Act No. 24 of 1965)] Mutual Banks Act, 1993 (Act No. 124 of 1993), as a mutual [building society] bank, is carrying on the business of a bank or a mutual [building society] bank, he or she may direct the Registrar of Banks · referred to in section 4 of the Banks Act, 1990; to cause the affairs or any 45 part of the 31fairs. of such person, partnership, close corporation, company or other juristic person to be inspected by an inspector appointed under section 11(1), in order to establish whether or not the business of a bank or mutual [building society 1 bank, as the case may be, is being carried on by that person, partnership, close corporation, company or other juristic 50 person. . (2) The provisions of sections 4, 5, 8 and 9 of the Inspection of Financial Institutions Act, 1984 (Act No. 38 of 1984), shall apply mutatis mutandis in respect of an inspection carried out in tenns of subsection (I).". 8 No. 17039 Act No. 2, 1996 . SOUTII AFRICAN RESERVE BANK AMENDMENT ACf, 1996 GOVERNMENT GAZETfE. 15 MARCH 1996 Amendment of section 22 of Act 90 of 1989, as amended by section 16 of Act 85 of 1992

8. Section 22 of the principal Ac~ is hereby amended by the addition of the following subsection: · "(6) If the number of shares held by a shareholder in the Bank increases to more 5 than 10 000 shares, he or she shall as soon as practicable dispose of the number of shares held by him or her in excess of 10 000.". Amendment or section 23 or Act 90 of 1989 ·

9. Section 23 of the principal Act is hereby amended by the substitution for subsection (2) of the following subsection: · 10 ~'(2} No shareholder referred to in subsection (2) or (6) of section 22 shall either . . directly or indirectly exercise any vote as a shareholder in respect of the number of shares in ~e. Bank held by him or her in exce~s of 10 000, and no group of companies with interlocking directorates shall either directly or indirectly exercise any vote a.s shareholders in re_spect of the total nu~~er ·of shares in the Bank held 15 by those companies in excess of 10 000.". .., · ....... J ! - .., Amendment of section 34 of Act 90 of 1989 ·

10. Section 34 ·of the principal Act is hereby amended by the substitution for paragraph (j) of subsection (1) of the following paragraph: · . "UJ sells, exchanges or otherwise disposes of any metal reproduction of [the 20 Krugerrand, 112-Krugerrand, 114-Krugerrand or 1110-KrugerrandJ ~ gold coin contemplated in Schedule 2, or uses the word "Krugerrand", "Natura" or "Protea", or any derivative thereof or any combination thereof with any other word, in the furtherance of the sale, exchange or disposal in any .•. other manner of such a reproduction or of any metal article of commerce;". 25 . . Repeal of section 39 of Act 90 of 1989

11. Section 39 of the principal Act is hereby repealed. Short title . .

12. This Act shall be called the South African Reserve Bank Amendment Act, 1996.