This contains UNCERTIFIED COPY for information/reference. For authentic copy, please refer to certified copy only.  In case of any mistake, please bring it to our notice.


LegalB's Resources
QUICK LINKS: ROOT DATABASE | OVERVIEW | VERSIONS & TEXT ACCESS  | TIMELINE | SUBORDINATE TEXTS | COMMENTARY | POTENTIAL TRANSGRESSOR LISTS | TRANSGRESSION ANALYSIS | EMAIL A REQUEST FOR UPDATES | HELP | CONTACT US | SEARCH SITE | LOG OUT |

South Africa
NATIONAL LEGISLATION OVERVIEWS
LegalB Logo
 
Financial Sector Regulation Act, No. 9 of 2017

Long title


To establish a system of financial regulation by establishing the Prudential Authority and the Financial Sector Conduct Authority, and conferring powers on these entities; to preserve and enhance financial stability in the Republic by conferring powers on the Reserve Bank; to establish the Financial Stability Oversight Committee; to provide for the establishment of a framework for the resolution of designated institutions to ensure that the impacts or potential impact of a failure of a designated institution on financial stability are managed appropriately; to designate the Reserve Bank as the resolution authority; to establish a deposit insurance scheme, including a Corporation for Deposit Insurance; to regulate and supervise financial product providers and financial services providers; to improve market conduct in order to protect financial customers; to provide for co-ordination, co-operation, collaboration and consultation among the Reserve Bank, the Prudential Authority, the Financial Sector Conduct Authority,  the Corporation for Deposit Insurance, the National Credit Regulator, the Financial Intelligence Centre and other organs of state in relation to financial stability and the functions of these entities; to establish the Financial System Council of Regulators and the Financial Sector Inter-Ministerial Council; to provide for making regulatory instruments, including prudential standards, conduct standards and joint standards; to make provision for the licensing of financial institutions; to make comprehensive provision for powers to gather information and to conduct supervisory on-site inspections and investigations; to make provision in relation to significant owners of financial institutions and the supervision of financial conglomerates in relation to eligible financial institutions that are part of financial conglomerates; to make provision for designated institutions in connection with resolution matters;to provide for powers to enforce financial sector laws, including by the imposition of administrative penalties; to provide for the protection and promotion of rights in the financial sector asset out in the Constitution; to establish the Ombud Council and confer powers on it in relation to ombud schemes; to provide for coverage of financial product and financial service providers by appropriate ombud schemes; to establish the Financial Services Tribunal as an independent tribunal and to confer on it powers to reconsider decisions by financial sector regulators, the Ombud Council and certain market infrastructures; to establish the Financial Sector Information Register and make provision for its operation; to provide for information sharing arrangements; to create offences; to provide for regulation-making powers of the Minister; to amend and repeal certain financial sector laws; to make transitional and savings provisions; and to provide for matters connected therewith.

[...Long title amended by Act 2021_023_060_20220128]

Table of contents

SECTION TITLE
ARRANGEMENT OF SECTIONS
CHAPTER 1. INTERPRETATION, OBJECT AND ADMINISTRATION OF ACT
Part 1. Interpretation
1. Definitions
2. Financial products
3. Financial services
4. Financial stability
5. Responsible authorities
6. Financial institutions that are juristic persons
Part 2. Object and administration of Act
7. Object of Act
8.  Administration of Act
Part 3. Application of other legislation
9. Inconsistencies between Act and other laws [...Title amended by Act 2021_023_037_20220128 - was entitled "Inconsistencies between Act and other financial sector laws"]
10. Application of other legislation
CHAPTER 2. FINANCIAL STABILITY
Part 1. Powers and functions of Reserve Bank
11. Responsibility for financial stability
12. Monitoring of risks by Reserve Bank
13. Financial stability review
Part 2. Managing systemic events and risks in relation to systemic events
14. Determination of systemic events
15. Functions of Reserve Bank in relation to systemic events
16. Information to Minister
17. Responsibilities of financial sector regulators
18. Directives to financial sector regulators
19. Exercise of powers by other organs of state
Part 3. Financial Stability Oversight Committee
20. Establishment of Financial Stability Oversight Committee
21. Functions of Financial Stability Oversight Committee
22. Membership
23. Administrative support by Reserve Bank
24. Meetings and procedure
Part 4. Financial Sector Contingency Forum
25. Financial Sector Contingency Forum
Part 5. Roles of financial sector regulators and other organs of state in maintaining financial stability
26. Co-operation among Reserve Bank and financial sector regulators in relation to financial stability
27. Memoranda of understanding [...Title amended by Act 2021_023_039_20220128 - was entitled "Memoranda of understanding relating to financial stability"]
28. Roles of other organs of state in relation to financial stability and resolution [...Title amended by Act 2021_023_040_20220128 - was entitled "Roles of other organs of state in relation to financial stability"]
Part 6. Systemically important financial institutions and payment systems [...Title amended by Act 2021_023_041_20220128 - was entitled "Part 6. Systemically important financial institutions"]
29. Designation of systemically important financial institutions
29A. Designated institutions [...inserted by Act 2021_023_042_20220128]
29B. Designation of systemically important payment systems [...inserted by Act 2021_023_042_20220128]
30. Prudential standards and regulator’s directives in respect of systemically important financial institutions and designated institutions [...Title amended by Act 2021_023_043_20220128 - was entitled "Prudential standards and regulator’s directives in respect of systemically important financial institutions"]
31. ... [...repealed by Act 2021_023_044_20220128 - was entitled "Winding-up and similar steps in respect of systemically important financial institutions"]
CHAPTER 3. PRUDENTIAL AUTHORITY
Part 1. Establishment, objective and functions
32. Establishment
33. Objective
34. Functions
Part 2. Governance
35. Overall governance objective
36. Appointment of Chief Executive Officer
37. Role of Chief Executive Officer
38. Term of office of Chief Executive Officer
39. Removal of Chief Executive Officer
40. Acting Chief Executive Officer
41. Establishment of Prudential Committee
42. Role of Prudential Committee
43. Meetings of Prudential Committee
44. Decisions of Prudential Committee
45. Governance and other subcommittees
46. Duties of members of Prudential Committee and members of subcommittees
47. Regulatory strategy
48. Delegations
49. Disclosure of interests
Part 3. Staff, resources and financial management
50. Staff and resources
51. Resources provided by Reserve Bank
52. Duties of staff members
53. Financial management duties of Chief Executive Officer
54. Information by Chief Executive Officer
55. Annual reports and financial accounts
CHAPTER 4. FINANCIAL SECTOR CONDUCT AUTHORITY
Part 1. Establishment, objective and functions
56. Establishment
57. Objective
58. Functions
Part 2. Governance
59. Overall governance objective
60. Establishment and role of Executive Committee
61. Commissioner and Deputy Commissioners
62. Roles of Commissioner and Deputy Commissioners
63. Terms of office
64. Service conditions
65. Removal from office
66. Meetings of Executive Committee
67. Decisions of Executive Committee
68. Governance and other subcommittees
69. Duties of Commissioner, Deputy Commissioners and other subcommittee members
70. Regulatory strategy
71. Delegations
72. Disclosure of interests
Part 3. Staff and resources
73. Staff and resources
74. Duties of staff members
75. Information by Commissioner
CHAPTER 5. CO-OPERATION AND COLLABORATION
Part 1. Co-operation and collaboration
76. Co-operation and collaboration between financial sector regulators and Reserve Bank
77. Memoranda of understanding
78. Other organs of state
Part 2. Financial System Council of Regulators
79. Financial System Council of Regulators
80. Meetings
81. Working groups and subcommittees
82. Support for Financial System Council of Regulators
Part 3. Financial Sector Inter-Ministerial Council
83. Financial Sector Inter-Ministerial Council
84. Meetings
85. Protection for financial customers in terms of financial sector laws, National Credit Act and Consumer Protection Act
86. Independent evaluation of effectiveness of co-operation and collaboration
CHAPTER 6. ADMINISTRATIVE ACTIONS
Part 1. Administrative action committees
87. Establishment and membership
88. Terms of membership
89. Meetings
90. Application of Part to Ombud Council
Part 2. Administrative justice
91. Applicability of Promotion of Administrative Justice Act [...Title amended by Act 2021_023_045_20220128 - was entitled "Applicability of Promotion of Administrative Justice Act to administrative action by financial sector regulators"] 
92. Procedures for specific administrative action in terms of Act
93. Processes for determining or amending administrative action procedures
94. Review of administrative action procedures
95. Revocation of decisions
96. Interpretation
CHAPTER 7. REGULATORY INSTRUMENTS
Part 1. Regulatory instruments
97. Interpretation
98. Process for making regulatory instruments
99. Substantially different regulatory instrument
.
100.Urgent regulatory instruments
101. Part does not limit other consultation
102. Making, publication and commencement of regulatory instruments
103. Submission of regulatory instruments to Parliament
104. Reports on consultation processes
Part 2. Standards
105. Prudential standards
106. Conduct standards
107. Joint standards
108. Additional matters for making standards
109. Standards requiring concurrence of Reserve Bank
110. General
CHAPTER 8. LICENSING
Part 1. Licensing requirements
111. Licence requirement in respect of providers of financial products and financial services, and market infrastructures
Part 2. Licences required in terms of section 111(1)(b) or (2) or section 162
112. Interpretation
113. Power to grant licences
114. Request for further information or documents by responsible authority
115. Relevant matters for application for licence
116. Determination of applications
117. Reporting obligations of licensee
118. Licences not transferable
119. Variation of licences
120. Suspension of licences
121. Revocation of licences
122. Continuation of licensed activity despite suspension or revocation of licence
123. Procedure for varying, suspending and revoking licences
124. Applications for licences
Part 3. Provisions relating to all licences under financial sector laws
125. Application
126. Concurrence of financial sector regulators on licensing matters
127. Compulsory disclosure of licences
128. Publication
CHAPTER 9. INFORMATION GATHERING, SUPERVISORY ON-SITE INSPECTIONS AND INVESTIGATIONS
Part 1. Application and interpretation
129. Application and interpretation of Chapter
130. Legal professional privilege
Part 2. Information gathering
131. Information gathering
Part 3. Supervisory on-site inspections
132. Powers to conduct supervisory on-site inspections
133. Interference with supervisory on-site inspections
Part 4. Investigations
134. Investigators
135. Powers to conduct investigations
135A. Investigations into designated institutions in resolution [...inserted by Act 2021_023_050_20220128]
136. Powers of investigators to question and require production of documents or other items
137. Powers of investigators to enter and search premises
138. Warrants
139. Interference with investigations
Part 5. Protections
140. Protections
CHAPTER 10. ENFORCEMENT
Part 1. Guidance notices and interpretation rulings
141. Guidance notices
142. Interpretation rulings
Part 2. Guidance notices and interpretation rulings
143. Directives by Prudential Authority
144. Directives by Financial Sector Conduct Authority
145. Removal of person from position
146. Consultation requirements
147. Period for compliance
148. Revoking directives
149. Compliance with directives
150. Application and interpretation
Part 3. Enforceable undertakings
151. Enforceable undertakings
Part 4. Court orders
152. Compliance with financial sector laws
Part 5. Debarment
153. Debarment
154. Consultation requirements
155. Where person cannot be located
Part 6. Leniency agreements
156. Leniency agreements
CHAPTER 11. SIGNIFICANT OWNERS
Part 1. Significant owners
157. Significant owners
158. Approvals and notifications relating to significant owners
159.  Standards in respect of, and regulator’s directives to, significant owners
CHAPTER 12. FINANCIAL CONGLOMERATES
Financial conglomerates [sic - heading in TOC but not text]
160. Designation of financial conglomerates
161. Notification by eligible financial institution
162. Licensing requirements for holding companies of financial conglomerates
163. Non-operating holding companies of financial conglomerates
164. Standards for financial conglomerates
165. Directives to holding companies
166. Approval and prior notification of acquisitions and disposals
CHAPTER 12A. RESOLUTION OF DESIGNATED INSTITUTIONS [... inserted by Act 2021_023_051_20220128[
Part 1. General provisions with respect to designated institutions [... inserted by Act 2021_023_051_20220128[
166AExercise of Reserve Bank's powers [... inserted by Act 2021_023_051_20220128[
166BReserve Bank's resolution objectives [... inserted by Act 2021_023_051_20220128[
166CReserve Bank's resolution functions [... inserted by Act 2021_023_051_20220128[
166DWinding up and similar steps in respect of designated institutions [... inserted by Act 2021_023_051_20220128[
166EResolution planning [... inserted by Act 2021_023_051_20220128[
166FBridge companies [... inserted by Act 2021_023_051_20220128[
166GAct of, and evidence of, insolvency [... inserted by Act 2021_023_051_20220128[
166HLiquidation [... inserted by Act 2021_023_051_20220128[
166 IDelegation of Reserve Bank's resolution functions [... inserted by Act 2021_023_051_20220128[
Part 2. Placing designated institutions in resolution [... inserted by Act 2021_023_051_20220128[
166JDetermination by Minister to place designated institution in resolution [... inserted by Act 2021_023_051_20220128[
166KWhen designated institution ceases to be in resolution [... inserted by Act 2021_023_051_20220128[
166LPlacing designated institution in resolution not termination or acceleration event [... inserted by Act 2021_023_051_20220128[ [... inserted by Act 2021_023_051_20220128[
166MReserve Bank to manage and control affairs of designated institution [... inserted by Act 2021_023_051_20220128[
166NReserve Bank not holding company [... inserted by Act 2021_023_051_20220128[
166OResolution practitioners [... inserted by Act 2021_023_051_20220128[
166PTransfer of shares in designated institutions in resolution [... inserted by Act 2021_023_051_20220128[
Part 3. Resolution measures [... inserted by Act 2021_023_051_20220128[
166QValuation [... inserted by Act 2021_023_051_20220128[
166RPowers [... inserted by Act 2021_023_051_20220128[
166SResolution action, including restructuring and bail in [... inserted by Act 2021_023_051_20220128[
166TOutcome of resolution actions [... inserted by Act 2021_023_051_20220128[
166UCreditor hierarchy and equality of claims [... inserted by Act 2021_023_051_20220128[
166VNo creditor worse off' rule [... inserted by Act 2021_023_051_20220128[
166WRanking of claims [... inserted by Act 2021_023_051_20220128[
166XRegistration of transactions [... inserted by Act 2021_023_051_20220128[
166YCosts of resolution [... inserted by Act 2021_023_051_20220128[
Part 4. Protections [... inserted by Act 2021_023_051_20220128[
166Z166Z. Administrative process for actions taken by Reserve Bank in terms of Chapter [... inserted by Act 2021_023_051_20220128[
Part 5. Banks in resolution- covered deposits [... inserted by Act 2021_023_051_20220128[
166AACorporation to ensure bank depositors have reasonable access to their covered deposits [... inserted by Act 2021_023_051_20220128[
166ABLimit of cover for covered deposits
166ACPayments made in error or as result of fraud
166ADCorporation substituted for depositor in respect of claims
Part 6. Corporation for Deposit Insurance- establishment, functions and governance [... inserted by Act 2021_023_051_20220128[
166AEEstablishment [... inserted by Act 2021_023_051_20220128[
166AFObjective and functions [... inserted by Act 2021_023_051_20220128[
166AGMembership [... inserted by Act 2021_023_051_20220128[
166AHGovernance of Corporation [... inserted by Act 2021_023_051_20220128[
166A IBoard [... inserted by Act 2021_023_051_20220128[
166AJFunctions of Board [... inserted by Act 2021_023_051_20220128[
166AKMeetings of Board and decisions [... inserted by Act 2021_023_051_20220128[
166ALAppointment of Chief Executive Officer of Corporation [... inserted by Act 2021_023_051_20220128[
166AMTerm of office of Chief Executive Officer of Corporation [... inserted by Act 2021_023_051_20220128[
166ANRemoval of Chief Executive Officer of Corporation [... inserted by Act 2021_023_051_20220128[
166AOCommittees [... inserted by Act 2021_023_051_20220128[
166APDuties of directors of Board and members of committees [... inserted by Act 2021_023_051_20220128[
166AQDisclosure of interests [... inserted by Act 2021_023_051_20220128[
166SRShare capital [... inserted by Act 2021_023_051_20220128[
166ASFinancial year of Corporation [... inserted by Act 2021_023_051_20220128[
166ATSurplus funds [... inserted by Act 2021_023_051_20220128[
166AUBookkeeping and auditing [... inserted by Act 2021_023_051_20220128[
166AVAnnual report [... inserted by Act 2021_023_051_20220128[
166AWWinding up of Corporation [... inserted by Act 2021_023_051_20220128[
166AXStaff and resources [... inserted by Act 2021_023_051_20220128[
166AYResources provided by Reserve Bank [... inserted by Act 2021_023_051_20220128[
166AZDuties of directors, committee members and staff members [... inserted by Act 2021_023_051_20220128[
166BACo-operation and collaboration with financial sector regulators and Reserve Bank [... inserted by Act 2021_023_051_20220128[
166BBMemoranda of understanding [... inserted by Act 2021_023_051_20220128[
166BCDeposit insurance levy [... inserted by Act 2021_023_051_20220128[
Part 7. Deposit Insurance Fund [... inserted by Act 2021_023_051_20220128[
166BDDeposit Insurance Fund [... inserted by Act 2021_023_051_20220128[
166BEInvestment [... inserted by Act 2021_023_051_20220128[
166BFInformation [... inserted by Act 2021_023_051_20220128[
Part 8. Contributions to Fund [... inserted by Act 2021_023_051_20220128[
166BGDeposit insurance premiums [... inserted by Act 2021_023_051_20220128[
166BHFund liquidity [... inserted by Act 2021_023_051_20220128[
CHAPTER 13. ADMINISTRATIVE PENALTIES
167. Administrative penalties
168. Payment
169. Interest
170. Enforcement
171. Application of amounts paid as administrative penalties
172. Administrative penalty taken into account in sentencing
173. Remission of administrative penalties
174. Prohibition of indemnity for administrative penalties
CHAPTER 14. OMBUDS
Part 1. Ombud Council
175. Ombud Council
176. Objective
177. Functions of Ombud Council
178. Overall governance objective
179. Board of Ombud Council
180. Appointment of Board members
181. Terms of office of Board members
182. Service conditions of Board members
183. Removal of Board members
184. Role of Board
185. Meetings of Board
186. Decisions of Board
187. Governance and other committees of Ombud Council
188. Chief Ombud
189. Duties of Board members
190. Delegations
191. Staff and resources
192. Duties of staff members
193. Disclosure of interests
Part 2. Recognition of industry ombud schemes
194. Recognition of industry ombud schemes
195. Requirement for further information or documents by Ombud Council
196. Determination of applications
197. Varying conditions
198. Suspension of recognition
199. Revocation of recognition
200. Procedure for varying, suspending and revoking recognition
.
Part 3. Powers of Ombud Council
201. Ombud Council rules
202. Directives of Ombud Council
203. Enforceable undertakings
204. Compliance with financial sector laws
205. Debarment
206. Administrative penalties
207. Requests for information
208. Supervisory on-site inspections and investigations
Part 4. General provisions
209. Access to ombud schemes
210. Restrictions on financial institutions in relation to ombud schemes
211. Applicable ombud schemes
212. Overlaps between ombud schemes
213. Collaboration between ombuds and ombud schemes
214. Governing rules of recognised industry ombud scheme
215. Obligation to comply with governing rules of recognised industry ombud schemes
216. Suspension of time barring terms
217. Reporting
CHAPTER 15. FINANCIAL SERVICES TRIBUNAL
Part 1. Interpretation
218. Definitions
Part 2. Financial Services Tribunal
219. Establishment and function of Financial Services Tribunal
220. Members of Tribunal
221. Term of office and termination of membership
222. Staff and resources
223. Duties of staff members
224. Panels of Tribunal
225. Panel list
226. Disclosure of interests
227. Tribunal rules
Part 3. Right to reasons for decisions
228. Right to be informed
229. Right to reasons for decisions
Part 4. Reconsideration of decisions
230. Applications for reconsideration of decisions
231. Decision of Tribunal not suspended
232. Proceedings for reconsideration of decisions
233. Decisions of panels
234. Tribunal orders
235. Judicial review of Tribunal orders
236. Enforcement of Tribunal orders
CHAPTER 16. FEES, LEVIES AND FINANCES
Part 1. Fees and Levies
237. Fees and levies
238. Fees and levies to be debts
239. Budget, fees and levies proposals
240. Consultation requirements
241. Determinations of information required for assessment of levy
242. Assessments of levy
243. Payment of fee or levy by instalments
244. Interest on late or non-payment of fees and levies
245. Exemption from fee
246. Management of fees and levies
Part 2. Finances
247. Finances of financial sector bodies
Part 3. Budgeting, accounting, auditing and financial reporting
248. Budgeting, accounting, auditing and financial reporting
Part 4. Application of Chapter to Tribunal
249. Application of Chapter to Tribunal
CHAPTER 17. MISCELLANEOUS
Part 1. Information sharing and reporting
250. Designated authority
251. Information sharing
252. Reporting by auditors to financial sector regulators
253. Reporting to financial sector regulators
254. Prohibition of victimisation
255. Protected disclosures
Part 2. Financial Sector Information Register
256. Establishment and operation of Financial Sector Information Register
257. Purpose of Register
258. Content of Register
259. Keeping of Register
260. Requirements for registered documents
261. Status of Register and judicial notice
262. Extracts from Register regarding licence status
263. Rectification of Register
264. Delegations by Director-General
Part 3. Offences and penalties
265. Duties of members and staff of certain bodies
266. Licensing
267. Requests for information, supervisory on-site inspections and investigations
268. Enforcement
269. Administrative penalties
270. Ombud schemes
271. Proceedings in Tribunal
272. Miscellaneous
273. False or misleading information
274. Accounts and records
275. False assertion of connection with financial sector regulator
276. Liability in relation to juristic persons
Part 4. General matters
277. Complaints
278. Compensation for contraventions of financial sector laws
279. Extension of period for compliance
280. Conditions of licences
281. Exemptions
282. Requirements for notification and concurrence
283. Arrangements for engagements with stakeholders
284. Records and entries in books of account admissible in evidence
285. Immunities
286. Notices to licensees
287. Publication requirements in financial sector laws
Part 5. Regulations and Guidelines
288. Regulations and guidelines
Part 6. Amendments, repeals, transitional and saving provisions
289. Interpretation
290. Amendments and repeals
291. Transitional provision in relation to medical schemes
292. Transitional prudential powers of Financial Sector Conduct Authority
293. Transfer of assets and liabilities of Financial Services Board
294. Transfer of staff of Financial Services Board
295. Annual reports
296. Inspections and investigations
297. Co-operation agreements with foreign agencies
298. Enforcement Committee and Appeal Board
299. Right of appeal of Financial Services Board decisions
300. Pending proceedings
301Savings of approvals, consents, registrations and other acts
302Levy
303Chief Actuary
304Additional transitional arrangements
Part 7. Short title and commencement
305Short title and commencement
Sch. 1.SCHEDULE 1. FINANCIAL SECTOR LAWS (Section 1(1)) [s1]
Sch. 2. SCHEDULE 2. RESPONSIBLE AUTHORITIES (Section 5) [s5]
Sch. 3. SCHEDULE 3. DOCUMENTS TO BE PUBLISHED IN THE REGISTER (Section 258) [s258] 
Sch. 4. SCHEDULE 4. AMENDMENTS AND REPEALS (Section 290) [s290; s300; s301; s302

Legislation Text Access Point

Versions
[To check whether a version has commenced, and how it was commenced, please see the Timeline for the Act, and the Annotated Text for the version.]
Access Official Gazette PDF  Request Subscription Fee Subscriber Access
As unamended Act 2017_009_000_20170822 EXT.LINK REQ.INFO LINK
As amended by Act 2017_018_000_20180118 . N/AREQ.INFOLINK
As amended by Act 2021_023_000_20220128 . N/AREQ.INFOLINK
As amended by ... N/A REQ.INFO LINK

* LegalB refers to a "version" of an Act or its sections in the format "YYYY_NNN_SSS_YYYYMMDD", which refers to "YEAR OF ACT_ACT NUMBER_SECTION OF ACT_DATE OF GAZETTE", and where "DATE OF GAZETTE" refers to the "YEAR_MONTH_DAY" on the face of the Gazette in which either the Act was originally published or in which the amending, lapsing or repealing instrument was published. Where any segment of the reference string contains only zeros, it means that information is not relevant, not made available, or unavailable.
* Unbolded grey text in square brackets is additional information provided by LegalB.
* "..." indicates further information not provided by LegalB for purpose of brevity
* An Asterisk indicates uncertainty regarding information, and a double asterisk indicates information must be read in the light of our relevant Commentary.