Co-operative Banks Act, 2007 (Act No. 40 of 2007)

No. and year of Act

Short Title

Extent of repeal or amendment

Act No. 94 of 1990

Banks Act, 1990

1. Amendment of section 2 by insertion in paragraph (b) of the following paragraph:

"(via) a co-operative bank registered under the Co-operative Banks Act, 2007; or"

Act No. 78 of 1998

National Payment System Act, 1998

1. Amendment of section 1 by—

(a) by the insertion after the definition "company" of the following definitions:

" 'co-operative bank' has the meaning assigned to it in section 1 of the Co-operative Banks Act, 2007;

'Co-operative Banks Act' means the Co-operative Banks Act, 2007;";

(b) the substitution for the definition of "Reserve Bank settlement system participant" of the following definition:

" 'Reserve Bank settlement system participant'

means—

(a) the Reserve Bank;

(b) a bank, a mutual bank, a co-operative bank or a branch of a foreign institution; or

(c) a designated settlement system operator,

that participates in the Reserve Bank settlement system;";

(c) the insertion after the definition of "Reserve Bank settlement system participant" of the following definition:

" 'secondary co-operative bank' means a secondary co-operative bank as defined in section 1 of the Co-operative Banks Act, 2007;"

(d) the insertion after the definition of "system operator" of the following definition:

'tertiary co-operative bank' means a tertiary co-operative bank as defined in section 1 of the Co-operative Banks Act, 2007;".

2. Amendment of section 3 by-

(a) the substitution in subsection (3) for paragraph (a) of the following paragraph:

"(a) A bank, mutual bank, a co-operative bank or branch of a foreign institution; and

(b) the substitution in subsection (4) for paragraph (a) of the following paragraph:

"(a) such person is the Reserve Bank, a bank, a mutual bank, a co-operative bank or a branch of a foreign institution and, in the case where a payment system management body has been recognised by the Reserve Bank as contemplated in subsection (1), such person is a member of the payment system management body so recognised: or"

3. Amendment of section 4 by-

(a) the substitution in subsection (1) for paragraph (b) of the following paragraph:

"(b) to act as a medium for communication by its members with the South African Government, the Reserve Bank, the Registrar of Banks, the Co-operative Bank Supervisors, the Registrar of Financial Institutions, any financial or other exchange, other public bodies, authorities and officials, the news media, the general public and other private associations and institutions; and"; and

(b) the substitution in subsection (2) for paragraph (d) of the following paragraph:

"(d) to recommend for approval by the Reserve Bank criteria subject to and in accordance with which a member that is also a Reserve Bank settlement system participant may be authorised to-

(i) allow a bank, mutual bank, co-operative bank or branch of a foreign institution that is not a Reserve Bank settlement system participant to clear; or

(ii) clear on behalf of a bank, a mutual bank, co-operative bank or a branch of a foreign institution that is not a Reserve Bank settlement system participant:

Provided that the member shall settle payment obligations on behalf of such bank, mutual bank, co-operative bank or branch of a foreign institution referred to in subparagraphs (i) and (ii).".

4. Amendment of section 6 by the substitution in subsection (1) for paragraph (b) of the following paragraph:

"(b) bank, mutual bank, co-operative bank or branch of a foreign institution that is allowed to clear in terms of section 4(2)(d)(i).

5. Amendment of section 7 by the substitution for paragraph (a) of the following paragraph:

"(a) the first-mentioned person is the Reserve Bank, a bank, mutual bank, a co-operative bank, branch of a foreign institution, or a designated settlement system operator; or",

6. Amendment of section 8 by-

(a) the substitution for the heading of the following heading:

"Curatorship, judicial management or liquidation"; and

(b) the substitution for subsection (1) of the following subsection:

"(1) The provisions of this section apply despite anything to the contrary in the law relating to insolvency or in the Companies Act, the Co-operative Banks Act.

the Banks Act or the Mutual Banks Act.".

7. Amendment of section 10 by the substitution for subsection (2) of the following subsection:

"(2) Subject to subsection (3), any information-

(a) obtained by the Reserve Bank in terms of subsection (1): and

(b) identifying a specific Reserve Bank settlement system participant,

is confidential and may not be disclosed by any director or officer of the Reserve Bank to any person, except to an officer of the Reserve Bank who requires that information for purposes of the execution of his or her duties in terms of this Act, the South African Reserve Bank Act, the Co-operative Banks Act, the Banks Act or the Mutual Banks Act.".

Act 89 of 1998

Competition Act,1998

1. Amendment of section 18 by-

(a) the substitution in subsection (2)(a) for subparagraph (ii) of the following subparagraph:

"(ii) a transaction for which consent is required in terms of section 54 of the Banks Act, 1990 (Act No. 94 of 1990), or section 29 of the Co-operative Banks Act, 2007: and"; and

(b) the substitution in subsection (2)(b) for subparagraph (ii) of the following subparagraph:

"(ii) it is in the public interest that the merger is subject to the jurisdiction of the Banks Act, 1990 (Act No. 94 of 1990), or section 29 of the Cooperative Banks Act, 2007, only.".

Act No.37 of 2004

Financial Services Ombud Schemes Act, 2004

1. Amendment of section 1 by the substitution for paragraph (a) of the definition of "financial institution" of the following paragraph:

(a) a bank as defined in section 1(1) of the Banks Act, 1990 (Act No. 94 of 1990) or a mutual bank as defined in section 1(1) of the Mutual Banks Act, 1993 (Act No. 124 of 1993), or a co-operative bank as defined in section 1 of the Co-operative Banks Act, 2007;"

Act No. 14 of 2005

Co-operatives Act, 2005

1. Insertion of section 5A:

The following section is hereby inserted in the Co-operatives Act after section 5:

"Application of Co-operative Banks Act

5A.  (a)  The Co-operative Banks Act, 2007, applies to any co-operative registered under that Act or any financial services co-operative that takes deposits and-

(i) has 200 or more members; and

(ii) holds deposits of members to the value of one million Rand or more.

(b) In the event of an inconsistency between any provision of this Act and any provision of the Co-operative Banks Act. 2007, the provision of that Act prevails.".

2. Amendment of section 18 by the addition in subsection (4) of the following paragraph:

"(c) in relation to a co-operative registered as a co-operative bank under the Co-operative Banks Act, 2007, the supervisor of that co-operative bank has approved the amendment.".

3. Amendment of section 50 by-

(a) the insertion after subsection (3) of the following subsection:

"(3A) If a co-operative bank registered under the Co-operative Banks Act, 2007, fails to appoint an auditor in accordance with subsections (1) and (2), the supervisor of the co-operative bank may appoint the auditor of that co-operative bank."

(b) the insertion after subsection (4) of the following subsection:

"(4A) The fees payable to the auditor of a co-operative bank registered under the Co-operative Banks Act, 2007, must be approved by the registrar with the written concurrence of the supervisor of the co-operative bank.".

4. Amendment of section 55 by the insertion after subsection (1) of the following subsection:

"(1 A) The registrar may with the written concurrence of the supervisor of the co-operative bank exempt a co-operative bank registered under the Co-operative Banks Act, 2007, from compliance with any requirement of this Chapter.".

5. Amendment of section 95 by the insertion after subsection (1) of the following subsection:

"(1A) Any regulations relating to the financial services co-operatives must be made in consultation with the Minister of Finance."

6. Insertion of Item 2A in Part 3 of Schedule 1:

(a) The following item is hereby inserted in part 3 of schedule 1 after item 2:

2A. "Co-operative Banks Act"

Any financial services co-operative that takes deposits and has 200 or more members or holds deposits of members to the value of one million Rand or more is required to register in terms of the Cooperative Banks Act, 2007, as a co-operative bank of a specific type.

7. Amendment of Item 6 of Part 3 of Schedule 1 by -

(a) the substitution for subitem (1) of the following subitem:

"(1) The registrar may, in consultation with the Registrar of Banks, the Registrars of Long-term or Short-term Insurance, or the Registrar of Medical Schemes, as the case may be, direct that all co-operatives,to whom this part applies, or any category of co-operative to whom this part applies, other than a co-operative bank, belong to a secondary co-operative that will act as a self-regulatory body, in compliance with any requirement for exemption from any provision of the Banks Act, 1990 (Act No. 94 of 1990), the Long-term Insurance Act, 1998 (Act No. 52 of 1998), or Short-term Insurance Act, 1998 (Act No. 53 of 1998), or the Medical Schemes Act, 1998 (Act No. 131 of 1998).".

(b) the deletion of subitem (2).

8. Amendment of item 7 of part 3 of schedule 1.

(a) Item 7 of part 3 of schedule 1 is hereby amended by the substitution for subitem (1) of the following subitem:

"Regulations

(1) The Minister may, in consultation with the Minister of Finance, the relevant supervisor for co-operative banks, the Registrar of Banks or the Registrars of Long-term or Short-term Insurance, or the Registrar of Medical Schemes, as the case may be, make regulations regarding any matter relating to the operation or administration of financial services co-operatives or any category of financial services co-operatives.

(2) The Minister must at the request of the Minister of Finance, make regulations regarding any matter relating to the operation or administration of financial services co-operatives or any category of financial services co-operatives.".