FINANCIAL SECTOR REGULATION ACT: SARB CLARIFIES SECTION ON EXCLUSIONS FROM RESOLUTION ACTIONS

FINANCIAL SECTOR REGULATION ACT: SARB CLARIFIES SECTION ON EXCLUSIONS FROM RESOLUTION ACTIONS

• 01 June 2023
• Financial Sector
• SA Legal Academy

The South African Reserve Bank (SARB) has issued a ruling on the interpretation and application of sub-sections 166S(7) and (9) of the Financial Sector Regulation Act, 2017, as amended. It came into effect on 1 June 2023.

Inserted into the principal statute by the Financial Sector Regulation Amendment Act, 2021, these sections form part of Chapter 12A (resolution of designated institutions) and provide for resolution action, including restructuring and bail-in.

In facilitating the orderly resolution of a designated institution – and in relation to an agreement to which that institution is party – in terms of sub-section 166S(7) the SARB may take certain actions by written order.

Sub-section 166S(9) lists the circumstances in which sub-section 166S(7) does not apply.

• SARB interpretation ruling

Financial Sector Regulation Amendment Act

Published by SA Legal Academy Policy Watch

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