Tag archives: Regulations

Financial Sector Laws Amendment Bill 2020 to go to Parliament

During a virtual meeting held on 10 June 2020, Cabinet approved the Financial Sector Laws Amendment Bill of 2020, for submission to Parliament. In the first step to formalising a resolution process for financially distressed banks, the Bill proposes to designate the SARB as the Resolution Authority, and enhances the SARB’s regulatory tools for discharging … Continue reading

COVID-19: Is a government announcement law?

Since the declaration of a national state of disaster in response to the COVID-19 pandemic, South Africans have been presented almost daily with announcements, as well as regulations and directions issued in terms of the Disaster Management Act (DMA). Regulations and directions are formal law, but a regulator does not have the legal authority to … Continue reading

FSCA relaxes reporting requirement in response to COVID-19

On 24 March 2020, in recognition of the impact of the current COVID-19 pandemic on the financial services industry, the FSCA released general communication 9 of 2020 which sets out relaxations of regulatory requirements. In summary, the FSCA has granted: Financial services providers A four month extension for the submission of some financial statements (not … Continue reading

Amendment to HPCSA Inquiry Regulations

The regulations relating to inquiries into alleged unprofessional conduct of healthcare practitioners registered with the Health Professions Council of South Africa (HPCSA) have been amended. Practitioners must ensure that their current and correct e-mail address is in the HPCSA’s records. Two of the three amendments bring the regulations up to speed with modern times. A … Continue reading

SARB intends to regulate crypto assets

In mid-January 2019, the SARB published its Consultation Paper on Policy Proposals for Crypto Assets, amid a growing interest, investment and participation in crypto assets by financial institutions and individuals and an estimated market capitalisation of about US$200 billion for crypto assets globally. Crypto assets are digital representations or tokens that are accessed, verified, transacted … Continue reading

Proposed changes to financial laws to deal with failing financial institutions

The Draft Financial Sector Laws Amendment Bill has been published for comment. The Bill proposes amendments to various acts including the Insolvency Act, the South African Reserve Bank Act, the Banks Act, the Mutual Banks Act, the Competition Act, the Financial Markets Act and the Insurance Act – with a view to strengthening the ability of … Continue reading

Short-term Insurance Act 1998: Proposed amendments to the regulations made under section 70 affecting premium collection

New draft premium collection legislation The National Treasury has published draft regulations for comment by 23 April 2018 regarding the collection of premiums by intermediaries (short-term and long-term premiums). The draft regulations require detailed premium collection authorisations by insurers to intermediaries. The proposed regulations also require a separate bank account for premiums received and require payment … Continue reading

Amended long-term insurance regulations

The amendments to the Long-term Insurance Regulations gazetted on 15 December 2017 became effective on 1 January 2018 with some later effective dates below. The corresponding amendments to section 49 of the Long-term Insurance Act 1998 (LTIA) also take effect on 1 January 2018. The changes to the Long-term Insurance Act Regulations include changes to the remuneration and practices … Continue reading

Amended short-term insurance regulations

The amendments to the Short-term Insurance Regulations gazetted on 15 December 2017 became effective on 1 January 2018 with some later effective dates below. Corresponding amendments required to the Short-term Insurance Act 1998 (STIA) also take effect on 1 January 2018. The majority of the changes to the Short-term Insurance Act Regulations relate to the circumstances in which … Continue reading

Medicines Control Council, not the courts, must classify medicines and medical devices

In December 2016 the Pretoria High Court ruled that one cannot avoid regulatory oversight by the Medicines Control Council (MCC) by declaring that a health-related product is a medical device and not a medicine. That is a determination which the MCC must make. In Omegalabs (Pty) Ltd v The Medicines Control Council and Others, the … Continue reading

Office of Health Standards Compliance procedural regulations in force

The ‘Procedural regulations pertaining to the functioning of the office of health standards compliance and handling of complaints by the ombud’ (the procedural regulations) were brought into force on 13 October 2016. The Office of Health Standards Compliance (The OHSC), was established by the National Health Act. It is responsible for the monitoring and enforcement … Continue reading

Members of Information Regulator for POPI voted by Parliament

On Wednesday, 7 September 2016, the National Assembly approved the nomination of advocate Pansy Tlakula as the Chairperson of the Information Regulator for the Protection of Personal Information Act 2013 (POPI). Four other appointments that were approved – full-time members Advocate Lebogang Stroom and Johannes Weapond; and part-time members Professor Tana Pistorius and Sizwe Snail. … Continue reading

Is Bitcoin legal?

Because of the anonymity associated with Bitcoin and many other cryptocurrencies and their role in illicit transactions on the Dark Net (a hidden part of the internet that is not accessible through normal browsers and search engines), public perception is often suspicious or at least cautious. However, the use of Bitcoin and other cryptocurrencies is … Continue reading

Don’t use regulations to interpret an act

In two recent cases the Supreme Court of Appeal pointed out that it is generally impermissible to use regulations created by a Minister as an aid to interpret an act passed by Parliament, even if the act includes the regulations. Even a specific provision in a regulation cannot override a general provision in a statute … Continue reading

Challenge to regulations and other regulatory action

We have been reminded again that regulations that are unreasonable and irrational can be challenged under the Promotion of Administrative Justice Act (PAJA). Regulations are made under empowering provisions in the governing law, have a direct external legal effect on the parties they apply to, and adversely affect the rights of persons in the industry … Continue reading

WhatsApp faces possible regulation in South Africa

The parliamentary telecommunications and postal services portfolio committee will hold a meeting on “Over-The-Top” (OTT) services on 26 January 2016 with a view to possibly regulating them. Popular OTT services include WhatsApp, Google Hangouts and Skype. Some mobile networks feel it is unfair that these services generate profits by riding on the back of infrastructure paid … Continue reading

New prescribed rate of interest in effect

[CLICK HERE TO SEE THE UPDATED RATE FOR 2018 IN THIS POST] The prescribed rate of interest has been changed. With effect from 8 January 2016, interest will be charged at 9.75% per annum, up from the previous rate of 9%. Interest on debts will be calculated at the repo rate plus 3.5%. The repo … Continue reading

Protection of Investment Act 2015 assented to

The President has assented to the Protection of Investment Act 2015 and the Act has been published for general information. The Act will only come into operation on a date determined by the President by proclamation in the Gazette. The intention of the Act is to achieve a balance of the rights and obligations of … Continue reading

Regulatory rules must be rational

Public bodies performing administration functions such as the SA Pharmacy Council must give rational reasons for their decisions and have a factual basis for making the decision. Even a body with statutory powers to generally “do all such things as the Council deems necessary or expedient to achieve the objects of this Act” does not … Continue reading

Regulation of derivatives: mandatory central clearing

What is a derivative? Although ‘derivative’ is a commonly used term, there is often confusion over what a derivative actually is. A derivative is a type of financial instrument whose price is determined by reference to one or more underlying assets, such as shares, currencies or interest rates. Derivatives may either be traded on an … Continue reading
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