Financial Markets Act Regulations in Place

National Treasury

Financial Markets Act regulations have been published in Government Gazette 41433.

The regulations were published for comment in 2016.

According to a national treasury statement released at the time, the regulations are necessary to meet South Africa’s commitment to the G20 decision to implement regulatory and legislative reforms to make financial markets safer.

The reforms are also intended to regulate over-the-counter (OTC) derivatives markets.

Included in the regulations are:

•    Requirements for the regulation of OTC derivatives;
•    Category of regulated person;
•    External central securities depositories links;
•    Assets and resources requirements for certain market infrastructures;
•    Central counterparties; and
•    Transitional arrangements and commencement.

The regulations came into effect on the date of publication.

Meanwhile, in Notice 99, treasury has announced the commencement of amendments to the Financial Markets Act of 2012 as contained in the Financial Sector Regulation Act of 2017.

In effect on 9 February 2017 are all items and parts of items other than those listed below as commencing on 1 April 2018 and 1 April 2019.
Item 60 (in respect of sections 84 and 85) kicks in on 1 April 2018 while Items 3 (in respect of section 1A (8)), 9 (in respect of section 7(3)(c)(v)), 26(1) (in respect of section 47(3)(c)(iii)), 29 (in respect of section 49A(3)(c)), 35(b) (in respect of section 54(3) (c)(iii)) and 38 (in respect of section 56A(3)(b)) come into force on 1 April 2019.

Meanwhile, in Notice 17, the Independent Regulatory Board for Auditors (IRBA) has called for nominations of candidates to serve on its board.

The board currently consists of nine members and a tenth member, specializing in human resources, is being sought.

The closing date for nominations is 9 March 2018.

In Notice 18, IRBA has published amendments to the code of professional conduct for registered auditors relating to the long association of personnel with an audit or assurance client.

In a separate matter, treasury has published the explanatory summary of the 2018/19 Division of Revenue Bill.

The proposed legislation will be tabled in parliament on Budget Day scheduled for 21 February 2018.

In Notice 89, treasury has published adjusted fees payable to the Registrar of Financial Services Providers.

Application for recognition as a representative body under section 6(4) read with section 6(3)(a)(iii) of the act will now cost R31 527 while application for approval of a key individual will cost R1 377.

Recognition of a qualification will be charged R2 568.

The new fees come into effect one month after the date of publication.

Sabinet Cape Town Office

Related legislation: