This week the Prudential Authority (PA) and the Financial Sector Conduct Authority (FSCA) jointly published a proposed Joint Standard on fit and proper requirements for significant owners of financial institutions in terms of section 159 read with sections 105, 106 and 107 of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017) (FSRA), for a second round of public consultation.
Pam Saxby of Legalbrief Policy Watch reported that “these provisions seek to prevent any individual from prejudicially controlling or influencing the business or strategy of a financial institution or impacting negatively on its prudential management and financial soundness either alone, or in collaboration with any other related or interrelated person”.
The Joint Standard was published together with the following set of accompanying documents (click on the hyperlinks to download the documents):
| (1) | a notice inviting submissions in relation to the Joint Standard, stating where, how and by when submissions are to be made; |
| (2) | a statement explaining the need for, the expected impact of, and the intended operation of the draft Joint Standard; |
| (3) | a matrix setting out the comments received during the first round of public consultation and the Authorities’ responses to the comments; |
| (4) | draft Joint Standard; |
| (5) | a draft FSRA Exemption Notice to be issued in conjunction with the Joint Standard by the FSCA; |
| (6) | a draft FSRA Exemption Notice to be issued in conjunction with the Joint Standard by the PA; |
| (7) | amended Prudential Standard GOI 4 – Fitness and Propriety of Key Persons and Significant Owners of Insurers; and |
| (8) | a comments submission template. |
Comments on the draft Joint Standard must be submitted on or before 4 September 2019 via email to: PA-Standards@resbank.co.za.
