Financial Sector Regulation Act, 2017 (Act No. 9 of 2017)Chapter 12A : Resolution of Designated InstitutionsPart 3 : Resolution measures166Q. Valuation |
(1)
| (a) | Before the Reserve Bank takes a resolution action in relation to a designated institution in resolution, or a designated institution in resolution takes such action, the Reserve Bank must obtain a valuation of the assets or liabilities involved. |
| (b) | The valuation must state the amount that, in the valuator’s opinion, would be realised from the asset, or the amount that, in the valuator’s opinion, would be the amount payable on the liability, in a winding up of the designated institution. |
| (c) | The purpose of the valuation is to inform the Reserve Bank in relation to the resolution action. |
| (2) | As soon as practicable after a designated institution ceases to be in resolution, the Reserve Bank must obtain a valuation of the assets and liabilities that were dealt with in the resolution action. |
| (3) | The Reserve Bank, in engaging a valuation for the purpose of this section, must specify the assumptions the valuator must make in conducting the valuation. |
| (4) | A valuation in terms of this section must be carried out— |
| (a) | by a valuator that meets the requirements prescribed in; and |
| (b) | otherwise in accordance with the requirements prescribed in, |
a prudential standard made for this section.
| (5) | The Reserve Bank must make valuations obtained in terms of this section available to the creditors and shareholders of the designated institution. |
[Section 166Q inserted by section 51 of the Financial Sector Laws Amendment Act, 2021 (Act No. 23 of 2021), Notice No. 789, GG45825, dated 28 January 2022- effective 1 June 2023 per (b)(ii) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]