| (2) | An external central counterparty from an equivalent jurisdiction may apply to the Authority for a licence. |
| (3) | An application for a licence in terms of this section must— |
| (a) | be made in the manner and contain information determined by the Authority; |
| (b) | be accompanied by a copy of the proposed rules; |
[Section 49A(3)(c) became effective on 1 April 2019, Notice No. R. 99, GG 41433, dated 9 February 2018]
| (d) | be supplemented by any additional information that the Authority may reasonably require. |
(4)
| (a) | The Authority must publish a notice of an application for a licence in two national newspapers at the expense of the applicant and on the Authority’s website. |
| (b) | The notice must state— |
| (i) | the name of the applicant; and |
| (ii) | the availability of the operating rules of the external central counterparty on the Authority’s website, for members of the public. |
| (a) | a company as defined in section 1(1) of the Companies Act; or |
| (b) | an external company as defined in section 1(1) of the Companies Act that is registered as required by section 23 of that Act. |
| (a) | require an applicant or a licensed external central counterparty to furnish such information, or require such information to be verified, as the Authority may deem necessary in connection with the application; and |
| (b) | take into consideration any other information regarding the applicant or the external central counterparty, derived from whatever source, including any other supervisory authority, if such information is disclosed to the applicant or the external central counterparty, as the case may be, and the latter is given a reasonable opportunity to respond thereto. |
| (7) | Regulations or joint standards may prescribe additional criteria for the licensing or exemption of an external central counterparty. |
| (8) | The Authority may, with the concurrence of the South African Reserve Bank and the Prudential Authority, grant a licence or an exemption, if— |
| (a) | the applicant or the external central counterparty undertakes to co-operate and share information with the Authority, the Prudential Authority and the South African Reserve Bank to assist with the performance of functions and the exercise of powers in terms of financial sector law; and |
| (b) | the objects of this Act referred to in section 2 will be furthered by the granting of the licence. |
| (9) | A licence or exemption may only be granted after the following factors have been taken into consideration: |
| (a) | Relevant international standards; |
| (b) | the type and size of external central counterparty; |
| (c) | the impact of the activities of the external central counterparty on the South African financial system; |
| (d) | the degree of systemic risk posed by the activities of the external central counterparty; and |
| (e) | any other factors that the Minister, the Authority, the South African Reserve Bank or the Prudential Authority, as the case may be, deem relevant. |
| (10) | A licensed external central counterparty must comply with the relevant requirements of this Act and any other terms and conditions of the licence. |
| (11) | The licence granted in terms of subsection (8) must specify those functions or duties, or services that may be provided by the external central counterparty and the securities in respect of which those functions or duties, or services may be performed. |
| (12) | A licensed external central counterparty may at any time apply to the Authority for an amendment of the terms of its licence or the conditions subject to which the licence was granted. |
(13)
| (a) | The Authority must publish a notice of an application for an amendment of the terms of a licence and the conditions subject to which the licence was granted in two national newspapers at the expense of the applicant and on the Authority’s website. |
| (b) | The notice must state— |
| (i) | the name of the applicant; |
| (ii) | the nature of the proposed amendments; and |
| (iii) | the period within which objections to the application may be lodged with the Authority. |
| (14) | The Authority may, with the concurrence of the South African Reserve Bank and the Prudential Authority, amend the terms of a licence or the conditions subject to which the licence was granted. |
(15)
| (a) | In respect of regulations that may be prescribed in terms of subsection (7), the Minister may repeal regulations, and new requirements may then be prescribed in joint standards or conduct standards. |
| (b) | Paragraph (a) does not affect or limit the power of the Minister to prescribe or amend regulations in terms of subsection (7). |
| (c) | Joint standards may be prescribed to address any matters that are not prescribed in regulations, or to provide detail that is additional to, but not inconsistent with, regulations prescribed by the Minister in terms of subsection (7). |
[Section 49A inserted by section 290, item 29 of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice No. R. 99, GG 41433, dated 9 February 2018]
