Tag archives: Financial Institutions

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

By Shawn Barnett (ZA) and Hishaam Khan on February 8, 2022 Posted in Finance

(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

By Shawn Barnett (ZA) and Hishaam Khan on February 7, 2022 Posted in Finance

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

Powers of the Financial Services Tribunal

By Donald Dinnie and Patrick Bracher (ZA) on May 13, 2021 Posted in General

Industry role players who have found themselves subject to regulatory action taken by the Prudential Authority (PA) or the Financial Sector Conduct Authority (FSCA) may apply to the Financial Service Tribunal (FST) for reconsideration of that action. Reasons for the decision can be requested within 30 days and the application must be made within 30 … Continue reading

Trade Finance – no respite from inventory and documentation fraud

By Steve Chemaly and Darragh Meaker on April 19, 2021 Posted in Banking

The increase in documentation fraud which has adversely impacted financial institutions operating within the trade finance space is an unwanted development that blockchain technology can mitigate. The types of lending most frequently seen in the trade financing space, including letters of credit, revolving credit facilities as well as guarantees have proven susceptible to fraud. An … Continue reading

More debarment guidance from the Tribunal

By Patrick Bracher (ZA) on March 31, 2021 Posted in General

More debarment guidance from the Tribunal A representative’s dishonesty, negligence or incompetence must be sufficiently serious to impugn the honesty and integrity of the representative as a person before debarment is justified. The ambit of the enquiry determining fit and proper characteristics is that a representative must conduct themselves with honesty and integrity and be … Continue reading

Failure to submit valuation reports will result in the imposition of administrative penalties

By Amina Yuda on March 31, 2021 Posted in Banking

On 17 March 2021, the Financial Services Tribunal confirmed that failure to timeously submit an actuarial valuation can result in the imposition of administrative penalties on a pension fund. The Financial Sector Conduct Authority (“FSCA”) may take into consideration the number of days that the pension fund was late in submitting the actuarial valuation when … Continue reading