(1)
| (b) | A prudential standard made under this subsection must clearly identify what constitutes a material asset. |
| (2) | The Prudential Authority may not give an approval in terms of subsection (1), unless the Authority is satisfied that the acquisition or disposal will not prejudicially affect— |
| (a) | the prudent management and the financial soundness of an eligible financial institution within the financial conglomerate; |
| (b) | the ability of the Prudential Authority to determine — |
| (i) | how the different types of business of the financial conglomerate are conducted; |
| (ii) | the risks of the financial conglomerate and each person that is part of that financial conglomerate; or |
| (iii) | the manner in which the governance framework is organised and conducted for the financial conglomerate. |
(3)
| (a) | If the Prudential Authority contemplates refusing to grant approval of an acquisition or disposal referred to in subsection (1), prior to taking a decision, the Prudential Authority must notify the holding company of the proposed refusal to grant approval. |
| (b) | A notice referred to in paragraph (a) must— |
| (i) | include a statement of the reasons for the refusal to grant approval; and |
| (ii) | invite the holding company to make submissions on the matter, and give a reasonable period to do so. |
| (4) | In deciding whether to grant or refuse a request for approval in terms of subsection (1), the Prudential Authority must take into account all relevant considerations, including at least the following: |
| (a) | Whether the acquisition or disposal will not prejudicially affect the matters referred to in subsection (2); and |
| (b) | submissions made in relation to the application for approval, including any submissions made in response to a request for submissions referred to in subsection (3). |
| (5) | An acquisition or disposal in contravention of subsection (1) is void. |
[Section 166 came into effect on 1 March 2019 by section (f) of Notice No. 169 of 2018, GG 41549, dated 29 March 2018]
