The Prudential Authority (PA) and the Financial Sector Conduct Authority (FSCA) published Joint Standard 1 of 2020 earlier this week. The communication focuses on fitness, propriety and other matters relating to significant owners, in terms of the Financial Sector Regulation Act 9 of 2017 (FSR Act). The Joint Standard will become effective on 1 December 2020 and will apply to significant owners of financial institutions as well as financial institutions itself.
What is a significant owner?
A person i.e. a natural person, legal person or an organ of state, is a significant owner of a financial institution if the person, directly or indirectly, alone or together with a related or inter-related person, has the ability to control or influence materially the business or strategy of the financial institution.
Objective of the Joint Standard
This Joint Standard sets out the criteria that must be met by significant owners in order to be considered fit and proper as well as factors that would constitute, on a prima facie basis, evidence of the absence of fitness and propriety. The Authorities recognise that the assessment of fitness and propriety requires an application of judgement, therefore this Joint Standard sets out the factors to be considered when exercising such judgement.
Click here to read more about the Joint Standard that commences on 1 December 2020.