Banks Act, 1990 (Act No. 94 of 1990)

Notices

Designation of Institution of which the activities do not fall within the meaning of "The business of a bank"

Financial Service Co-operative

3. Conditions
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3.1The activities of a financial service co-operative, in so far as they correspond to the activities contemplated in paragraphs (a), (b), (c) and (d) of the definition of "the business of a bank in section 1(1) of the Banks Act, shall be performed solely-
3.1.1in respect of its members; and
3.1.2in pursuit of such financial service co-operative's objective of providing banking-related financial services to its members.

 

3.2A financial service co-operative shall not-
3.2.1in the performance of its activities, use, or refer to itself by, any name, description or symbol indicating, or calculated to lead persons to infer, that it is a bank;
3.2.2in respect of itself or any of its undertakings use a name or description that includes the word "bank, or any derivative thereof, unless such name or description is composed of words that include the word "bank" as part of a place-name or a personal name;
3.2.3despite any provisions to the contrary-
3.2.3.1perform any of the acts provided for in paragraphs (d), (f), (g), (k), (o) and (sA) of subsection (1) of section 49 of the Co-operatives Act;
3.2.3.2advance any money as envisaged in section 52 of the Co-operatives Act;
3.2.3.3overdraw a banking account as envisaged in section 53 of the Co-operatives Act;
3.2.3.4issue shares not fully paid up;
3.2.3.5without the prior written approval of the Registrar of Banks, register its statute with the Registrar of Co-operatives, or register an amendment or replacement of its statute with the Registrar of Co-operatives;
3.2.4pursue any objective or perform any function not authorized by its statute; or
3.2.5at any time, hold deposits from members amounting in the aggregate to more than R20 million.

 

3.3A financial service co-operative shall strictly comply with-
3.3.1the provisions relating to—
3.3.1.1the management of co-operatives contained in Chapter VI of the Co-operatives Act; and
3.3.1.2accounting records, accounting and auditing of co-operatives contained in Chapter VII of the Co-operatives Act;
3.3.2any additional prescriptions of or conditions imposed by the Registrar of Co-operatives.

 

3.4A financial service co-operative must at all times voluntarily subject itself to supervision and regulation by the South African Microfinance Apex Fund, a trading entity established within the administration of the Department of Trade and Industry under the Public Finance Management Act, 1999 (Act No. 1 of 1999).