Statutes section 3

Section 3

In force date not confirmed

3. (1) Mo Molaong ono “tirelo ya ditshelete” e kaya—

(a) nngwe le nngwe ya ditiro tse di latelang tse di dirwang mo Rephaboliking mabapi le kuno ya ditshelete, kuno ya ditshelete ya boditshaba, sediriswa sa ditshelete, kgotsa sediriswa sa ditshelete sa boditshaba:

(i) Kabelo, tsweletso, papatso kgotsa phatlalatso;

(ii) go tlamela ka kgakololo, dikatlanegiso kgotsa kaelo; 60

(iii) go dirisa ka kgotsa go tsamaisa;

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(iv) providing administration services;

(b) dealing or making a market in the Republic in a financial product, a foreign financial product, a financial instrument or a foreign financial instrument;

(d) securities services;

(e) an intermediary service as defined in section 1(1) of the Financial Advisory and Intermediary Services Act;

(f) a service related to the buying and selling of foreign exchange;

(g) a service related to the provision of credit, including a debt collection service, but excluding the services of—

(i) a debt counsellor registered in terms of section 44 of the National Credit Act who provides the services of a debt counsellor as contemplated in that Act;

(ii) a payment distribution agent as defined in section 1 of the National Credit Act; or

(iii) an alternative dispute resolution agent, as defined in section 1 of the National Credit Act;

(h) a service provided to a financial institution through an outsourcing arrangement;

(i) any other service provided by a financial institution, being a service regulated by a specific financial sector law; and

(j) a service designated by the Regulations for this section as a financial service.

(2) A service provided by a market infrastructure is not a financial service unless designated by Regulations in terms of subsection (3).

(3) If doing so will further the object of this Act set out in section 7, the Regulations may designate as a financial service—

(a) any service that is not regulated in terms of a specific financial sector law if the service, that is provided in the Republic, relates to—

(i) a financial product, a foreign financial product, a financial instrument or a foreign financial instrument;

(ii) an arrangement that is in substance an arrangement for lending, making a financial investment or managing financial risk, all as contemplated in section 2(2) to (4); or

(iii) the provision of a benchmark or index; or

(b) a service provided by a market infrastructure.

(4) For the purposes of subsection (1)(b) of the definition of “financial service” in subsection (1)—

“dealing” means any of the following, whether done as a principal or as an agent:

(a) In relation to securities or participatory interests in a collective investment scheme, underwriting the securities or interests; and

(b) the buying or selling of the securities or interests for own account or on behalf of another person as a business, a part of a business or incidental to conducting a business;

“making a market” in a financial instrument takes place when—

(a) a person, through a facility, at a place or otherwise, states the prices at which the person offers to acquire or dispose of financial instruments, whether or not on the person’s own account; and

(b) other persons reasonably expect that they can enter into transactions for those instruments at those prices.

(5) Regulations designating a financial service in terms of subsection (3) may specify the financial sector regulator that is the responsible authority for the designated financial service.

Financial stability

4. (1) For the purposes of this Act, “financial stability” means that—

(a) financial institutions generally provide financial products and financial services, and market infrastructures generally perform their functions and duties in terms of financial sector laws, without interruption;

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Nmr 9 ya 2017

(iv) go tlamela ka ditirelo tsa tsamaiso;

(b) go samagana kgotsa go dira mmaraka mo Rephaboliking mo kunong ya ditshelete, kuno ya ditshelete ya boditshaba, sediriswa sa ditshelete kgotsa sediriswa sa ditshelete sa boditshaba;

(d) ditirelo tsa dithoto;

(e) tirelo ya magareng jaaka e tlhalositswe mo karolong (1) ya Financial Advisory and Intermediary Services Act;

(f) tirelo e e amanang le theko le thekiso ya kananyo ya boditshaba;

(g) tirelo e e amanang le kabelo ya sekoloto, go akaretsa le tirelo ya kgobokanyo ya molato, mme ga e akaretse ditirelo tsa—

(i) mogakolodi wa tsa sekoloto yo o kwadisitsweng go ya ka karolo 44 ya Molao wa Bosetshaba wa Sekoloto yo o tlamelang ka ditirelo tsa mogakolodi wa tsa sekoloto jaaka go tlhalositswe mo Molaong oo;

(ii) modiredi yo o phatlalatsang tuelelo jaaka go tlhalositswe mo karolong 1 ya Molao wa Bosetshaba wa Sekoloto; kgotsa

(iii) moemedi yo mongwe wa tharabololo ya dithulano, jaaka go tlhalositswe mo karolong 1 ya Molao wa Bosetshaba wa Sekoloto;

(h) tirelo e e tlamelwang kwa setheong sa ditshelete ka thulaganyo ya go bona tirelo kwa ntle; 20

(i) tirelo nngwe le nngwe e e tlamelwang ke setheo sa ditshelete, e leng tirelo e e laolwang ke molao o o tsepameng wa lephata la ditshelete; le

(j) tirelo e e tlhomilweng ka Melawana ya karolo eno jaaka tirelo ya ditshelete.

(2) Tirelo e e tlamelwang ke thulaganyetso ya popegotheo ya mmaraka ga se tirelo ya ditshelete, ntle le fa e tlhomilwe ka Melawana go ya ka karolotlaleletso (3). 25

(3) Fa go dira jalo go tla tsweletsa maikaelelo a Molao ono jaaka a tlhagisitswe mo karolong 7, Melawana e ka tlhoma jaaka tirelo ya ditshelete—

(a) tirelo nngwe le nngwe e e sa laolweng go ya ka molao o o tsepameng wa lephata la ditshelete fa tirelo, e e tlamelwang mo Rephaboliking, e amana le—

(i) kuno ya ditshelete, kuno ya boditshaba ya ditshelete, sediriswa sa ditshelete kgotsa; sediriswa sa ditshelete sa boditshaba

(ii) thulaganyo eo e leng ka boyona thulaganyo ya kadimo, go dira peeletso ya ditshelete kgotsa taolo ya dikotsi tsa ditshelete, tsotlhe jaaka di kailwe mo dikarolong 2(2) go fitlha go (4); kgotsa

(iii) kabelo ya kaelo kgotsa tshupanekelo; kgotsa

(b) tirelo e e tlamelwang ke thulaganyetso ya popegotheo ya mmaraka.

(4) Mabapi le maitlhomo a karolo (1)(b) a tlhaloso ya “tirelo ya ditshelete” mo karolotlaleletsong (1)—

“go dirisana le”, go kaya nngwe le nngwe ya tse di latelang, e dirilwe jaaka mookamedi kgotsa moemedi: 40

(a) Mabapi le dipoelo tsa dithoto kgotsa botsayakarolo jwa kgatlhego mo sekemeng sa peeletssommogo, go tsamaisa dithoto kgotsa dipoelo; le

(b) go reka le go rekisa dithoto kgotsa morokotso mabapile le maikarabelo bobona kgotsa mo boemong jwa motho yo mongwe jaaka kgwebo, karolo ya kgwebo kgotsa ka go tsamaelana le go dira kgwebo; 45

“go dira mmaraka” mo sedirisweng sa ditshelete go diragala fa—

(a) motho, ka tiriso ya sediriswa, kwa lefelong kgotsa ka gongwe, a tlhagisa ditlhotlhwa tse motho a di beileng go fitlhelela kgotsa go rulaganya sediriswa sa ditshelete, e ka tswa e le ka kgotsa e se ka akhaonto ya motho yoo; le

(b) batho ba bangwe ka mabaka ba solofela gore ba ka tsena mo kgwebisanong ya didiriswa tseo ka ditlhotlhwa tseo.

(5) Melawana e e tlhomang tirelo ya ditshelete go ya ka karolotlaleletso (3) e ka tsepamisa bolaodi jwa lephata la ditshelete joo e leng bothati jo bo rweleng maikarabelo a go laola batlamedi ba tirelo.

## Tlhomamo ya ditshelete

4. (1) Mabapi le maitlhomo a Molao ono, “tlhomamo ya ditshelete” e kaya gore—

(a) ditheo tsa ditshelete ka kakaretso di tlamela dikuno tsa ditshelete le ditirelo tsa ditshelete, le dithulaganyetso tsa popegotheo ya mmaraka di dira ka kakaretso ditiro le maikarabelo a tsona go ya ka melao ya lephata la ditshelete, ntle le kgoreletso;

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(b) financial institutions are capable of continuing to provide financial products and financial services, and market infrastructures are capable of continuing to perform their functions and duties in terms of financial sector laws, without interruption despite changes in economic circumstances; and

(c) there is general confidence in the ability of financial institutions to continue to provide financial products and financial services, and the ability of market infrastructures to continue to perform their functions and duties in terms of financial sector laws, without interruption despite changes in economic circumstances.

(2) A reference in this Act to maintaining financial stability includes, where financial stability has been adversely affected, a reference to restoring financial stability. 10

## Responsible authorities

5. (1) Subject to subsection (2), the responsible authority for a financial sector law is the financial sector regulator identified in Schedule 2 as the responsible authority for that financial sector law. 15

(2) Despite subsection (1) and sections 2(5) and 3(5), if a section 77 memorandum of understanding provides for one of the financial sector regulators to delegate its functions and powers in relation to a provision of a financial sector law for which it is the responsible authority to another financial sector regulator, the other financial sector regulator is, to the extent of the delegation, the responsible authority for the provision. 20

## Financial institutions that are juristic persons

6. Where a financial sector law imposes an obligation to be complied with by an entity that is a juristic person, the members of the governing body of that juristic person must ensure that the obligation is complied with.

## Part 2

## Object and administration of Act

## Object of Act

7. (1) The object of this Act is to achieve a stable financial system that works in the interests of financial customers and that supports balanced and sustainable economic growth in the Republic, by establishing, in conjunction with the specific financial sector 30 laws, a regulatory and supervisory framework that promotes—

(a) financial stability;

(b) the safety and soundness of financial institutions;

(d) the efficiency and integrity of the financial system; 35

(e) the prevention of financial crime;

(f) financial inclusion;

(g) transformation of the financial sector; and

(h) confidence in the financial system.

(2) When seeking to achieve the object of this Act, the Reserve Bank and the financial 40 sector regulators must not be constrained from achieving their objectives and responsibilities as set out in sections 11, 33 and 57.

## Administration of Act