| (1) | This section applies in relation to the following actions taken by the Reserve Bank: |
| (b) | an action in relation to a designated institution in resolution, being an action that adversely affects the rights of any person (a ‘person concerned’) and that has a direct, external legal effect. |
| (2) | The Reserve Bank must, subject to subsection (3), before taking an action to which this section applies— |
| (a) | publish a notice of the action with a statement that— |
| (i) | states the reasons for the proposed action; and |
| (ii) | includes information relevant to the matter; and |
| (b) | invite any person concerned to make representations to the Reserve Bank on the matter within a reasonable period specified in the notice, which period may not exceed 14 days. |
| (3) | In deciding whether to take the action, the Reserve Bank must take into account all submissions received by the end of the period specified in terms of subsection (2)(b). |
| (4) | If the Reserve Bank determines that compliance with subsections (1) and (2) in respect of a proposed action is likely to affect financial stability adversely, or defeat the object of the proposed action, the Reserve Bank may take the action without complying with those subsections. |
(5)
| (a) | If the Reserve Bank takes an action to which this section applies without complying with subsection (1) or (2), it must publish a statement of the reasons why the subsections were not complied with. |
| (b) | Any person concerned may make submissions to the Reserve Bank within one month after publication of the statement. |
| (c) | The Reserve Bank must consider the submissions and, as soon as practicable, publish a further notice stating what action, if any, the Reserve Bank proposes to take on the matter, including whether the Reserve Bank proposes to rescind or revoke the action or to provide concerned persons with restitution. |
| (6) | The Reserve Bank must not rescind or revoke an action taken in terms of section 166J or 166K. |
| (7) | In respect of an action to which this section applies, the procedure specified in this section applies instead of the procedure prescribed by section 3(2) and section 4(1), (2) and (3) of the Promotion of Administrative Justice Act. |
[Section 166Z 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]
