Topic: Finance

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“Too late to have your matter reconsidered,” says the Financial Services Tribunal

On 4 May 2022, the Financial Services Tribunal (Tribunal) dismissed an application for condonation in an application that was filed a year and a day later than the determination, which was the subject of the reconsideration. The grounds for the dismissal were, inter alia, that the pension fund and the respondents would be severely prejudiced. … Continue reading

Financial Services Tribunal hold FSCA has no penalty jurisdiction over foreign persons

In Viceroy Research Partnership LLC and others against the Financial Sector Conduct Authority, the Financial Services Tribunal was faced with the question whether the FSCA had the authority to impose administrative penalties jointly and severally on three partners in a foreign partnership who were not South African citizens nor residents, and the acts allegedly committed … Continue reading

The Basics of Venture Debt Financing

Bank or private debt and venture debt are separate segments in the debt financing market. In contrast to venture debt financings, which relate to start-ups, bank or private debt financings involve the financing of established companies that have already generated profits, can provide collateral and service the debt from the start. Venture debt financings are … Continue reading

Regulation on Crypto Assets – Part 2

Following on from our earlier blog on the declaration of crypto assets as financial products under the FAIS Act (the Declaration) we have received numerous queries on the transitional arrangements relevant to the new licensing regime, and the impact of the Declaration on crypto asset derivatives.  Transitional arrangements  Specific concerns have been raised regarding whether … Continue reading

Crypto Asset Exemption

With the declaration of crypto assets as a financial product, providers of crypto assets are left wondering whether they need to register as a financial service provider under the Financial Advisory and Intermediary Services Act, 2002. Following an exemption published by the Financial Sector Conduct Authority, a person who provides a financial service in relation … Continue reading

Regulation on Crypto Assets

In general notice 1350 of 2022, effective as of 19 October 2022, the FSCA has formally declared a crypto asset as a financial product under the Financial Advisory and Intermediary Services Act, 2002.   The declaration marks the first step in crypto asset regulation, in South Africa, and follows a draft declaration published in 2020 and … Continue reading

Developments in the regulation of open finance

The Intergovernmental Fintech Working Group (IFWG) has published a new blog on Open Finance, noting that South African regulatory authorities have started looking at open finance as it relates to their respective mandates. What is open finance? The premise of “open finance” is to give customers the ability to access and share their own financial … Continue reading

Regulations for cryptocurrency promised by end of 2023

This article was co-authored by: Kristen de Wet, Candidate Attorney The deputy governor of the South African Reserve Bank (SARB) has confirmed that the trading of cryptocurrency in South Africa will be regulated within the next 12 to 18 months from 12 July 2022. The use of cryptocurrency in South Africa is prevalent and recent … Continue reading

Financial Services Tribunal reluctant to overturn FSCA administrative decisions

This blog was co-authored by Kristen de Wet, Candidate Attorney On 4 April 2022, the Financial Services Tribunal in JHE Murray v FSCA, held that there exists no requirement in terms of the legislative framework that obliges the Financial Sector Conduct Authority (FSCA) to conduct a formal hearing before making administrative decisions. Consequently, reconsideration applications … Continue reading

Green Loans and Sustainability Linked Loans – same but different?

From a reputational and corporate governance perspective, green and sustainable activity both gain favour with shareholders and investors (particularly those who place emphasis on investment with a positive environmental, social and governance (ESG) impact). Green Loans and Sustainability Linked Loans have distinctive characteristics which should influence the type of loan offering borrowers consider. A key … Continue reading

Green Loans: a grassroots overview

What are Green Loans? Green loans are loan instruments made available exclusively to finance or re-finance, wholly or partly, new or existing eligible Green Projects, according to the Loan Market Association’s Green Loan Principles (the GLPs). There are no specific qualifying criteria for a “Green Project” but indicative categories set out in the GLPs include … Continue reading

Regulation on Crypto Assets

In November 2020, the FSCA released a draft declaration to include crypto assets as ‘financial products’ under the Financial Advisory and Intermediary Services Act, 2002.  The effect of the draft declaration, once made final, would be that any person providing advice or intermediary services in relation to crypto assets would need to be licensed as … Continue reading

National Treasury again commits to the ‘modernised system’ of exchange control regulation in 2022 Budget Speech

This blog was co-authored by: Kristin January, Candidate Attorney On Wednesday 23 February 2022, the Minister of Finance presented his inaugural Budget Speech.  The National Treasury confirmed its commitment to transformation of exchange control regulations with several new proposals: Individuals are permitted to export dual listed domestic securities to a foreign recognised exchange, subject to … Continue reading

The Role and Powers of the FAIS Ombud

This Supreme Court of Appeal judgment in The Ombud for Financial Services Providers and C S Brokers CC and Others [2021] ZASCA 117 is a reminder that section 20 of FAIS created the office of the Ombud as a mechanism for the speedy resolution of disputes which would otherwise be dealt with in court. A … Continue reading

Crypto Wallets: What You Need To Know

This blog was co-authored by: Preshanta Poonan, Associate Designate Bitcoin started the cryptocurrency frenzy in 2009, and since then there have been several new cryptocurrencies launched which are fast growing in interest and adoption. When purchasing cryptocurrency, it is important to understand how the wallets work that store your crypto. You must choose the right … Continue reading

Fitness, propriety and other matters related to significant owners – Part 2

(Click here for part 1) Joint Standard 1 of 2020 and the Financial Sector Regulation Act, 2017 (FSRA) prescribe wide ranging obligations for significant owners, but certain persons are exempt.  Financial Sector Conduct Authority (FSCA) General Notice 3 of 2020 exempts the following persons from the requirements of the Joint Standard probably because these entities … Continue reading

Fitness, propriety and other matters related to significant owners – Part 1

The Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA) Joint Standard 1 of 2020 sets out the requirements on fitness, propriety and other matters relating to significant owners of financial institutions and the financial institutions themselves.  It is worth reminding ourselves of the requirements. Prudent business management of financial institutions is dependent on … Continue reading

FSCA publishes a digital banking research report

In recognition of the increase in the adoption of digital channels by financial consumers, in late 2021 the FSCA published a Digital Banking Research Report on the state of digital banking activities in South Africa. The term “digital banking” refers to the digitisation of traditional banking services in order to more efficiently deliver financial services … Continue reading

YouTube channel for the Financial Sector Conduct Authority (FSCA)

In a welcomed development, the Financial Sector Conduct Authority has established a YouTube channel (https://m.youtube.com/channel/UCh3dQcOQAzdptNTKFQvB7HQ/about). The channel is a useful resource and provides valuable insight  as to the FSCA’s stance on certain issues.  Check out their latest videos: How to establish a FAIS compliance function: https://www.youtube.com/watch?v=QlnMYmwlj1Y How the FSCA complies to PAIA: https://youtu.be/TdUUOEckfB0 Financial soundness requirements … Continue reading

FAIS debarment and what constitutes honesty and integrity

In order for a representative to be debarred, there must be non-compliance by the representative or the key individual of the financial services provider with, amongst other things, the “fit and proper” requirements of the FAIS Act. The fit and proper requirements are measured against a number of categories including those of personal character qualities … Continue reading
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