Tag archives: Regulations

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

High Frequency Trading

In the United States High Frequency Trading (HFT) is expected to account for about 48,5% of exchange trade volume in 2014. This percentage has dropped from HFT’s peak of 61% in 2009. In the UK, estimates are that HFT represents approximately 36% of UK stock market transactions. This is a globally significant volume of trades. … Continue reading

Government provides tax incentive to avoid those rainy days

National Treasury has published draft Regulations which allow tax free savings products and investments from 1 March 2015. Licensed banks, long-term insurers, managers of registered collective investment schemes, authorised users (stock-brokers), linked investment service providers (LISPs) and the National Government will be able to offer tax free savings and investments to the public and will … Continue reading

60 not 40 days’ notice to FSB to end binders

Regulation 6.6 of the Short-term Insurance Act requires an insurer to give notice to the Financial Services Board (FSB) 60 days before the termination date of a binder agreement (the form of the notice is in Annexure A of Directive 151). Directive 151 mistakenly stipulates that notice must be given 40 days before the termination … Continue reading

Insurance and Emergency Medical Services Regulations

The Minister of Health has published draft emergency medical services regulations. Interested parties have till 23 October 2014 to comment. The proposed regulations deal with ambulance services and emergency medical services including pre-hospital medical treatment and transport. The draft regulations envisage mandatory licensing of emergency medical services. No licence will be issued unless proof of … Continue reading

Draft demarcation regulations 2014 – deadline extended

The final date for comment on the proposed amendments to the Draft Demarcation Regulations has been extended to 31 July 2014 because of the public interest in the regulations and several extension requests. National Treasury has also published a set of Frequently Asked Questions with their responses to some questions already received from stakeholders. The … Continue reading
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