Financial Sector Regulation Act, 2017 (Act No. 9 of 2017) > Chapter 1 : Interpretation, Object and Administration of Act > Part 1 : Interpretation

(1)	In this Act, unless the context indicates otherwise—

"administrative action"

has the same meaning ascribed to it in terms of section 1 of the Promotion of Administrative Justice Act;

"administrative action committee"

means a committee established in terms of section 87;

"administrative action procedure"

means a procedure determined in terms of section 92;

"administrative penalty order"

means an order in terms of section 167;

"agreement"

includes an arrangement or an understanding, whether in writing or not;

[Definition inserted by section 35(a) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"bank"

means each of the following:

(a)	a bank as defined in the Banks Act;

(b)	a branch as defined in the Banks Act;

(c)	a mutual bank as defined in the Mutual Banks Act, 1993 (Act No. 124 of 1993); or

(d)	a co-operative bank as defined in the Co-operative Banks Act, 2007 (Act No. 40 of 2007);

"Banks Act"

means the Banks Act, 1990 (Act No. 94 of 1990);

"benchmark"

means any index—

(a)	by reference to which the amount payable under a financial instrument or a financial contract, or the value of a financial instrument, is determined; or

(b)	that is used to measure the performance of an investment fund with the purpose of tracking the return of such index or of defining the asset allocation of a portfolio or of computing the performance fees;

"Board"

means the Board of the Corporation referred to in section 166AI;

[Definition inserted by section 35(b) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"bridge company"

means a company incorporated in terms of section 166F;

"business document"

means a document held by a person in connection with carrying on a business;

"business premises"

means premises, including a building or a part of a building, used by a person for carrying on a business;

"Chairperson"

means the person holding the office of the Chairperson of the Tribunal in terms of section 220(4), and includes a person acting as the Chairperson;

"Chief Executive Officer"

means the Chief Executive Officer of the Prudential Authority appointed in terms of section 36(1), and includes a person acting as the Chief Executive Officer;

"Chief Executive Officer of the Corporation"

means the Chief Executive Officer of the Corporation appointed in terms of section 166AL(1), and includes a person acting as the Chief Executive Officer of the Corporation;

[Definition inserted by section 35(c) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"Chief Ombud"

means a person appointed as the Chief Ombud of the Ombud Council in terms of section 188;

"collective investment scheme"

has the same meaning ascribed to it in terms of section 1 of the Collective Investments Schemes Control Act, 2002 (Act No. 45 of 2002);

"Commissioner"

in relation to the Financial Sector Conduct Authority, means the Commissioner of the Financial Sector Conduct Authority appointed in terms of section 61(1), and includes a person acting as the Commissioner;

"Companies Act"

means the Companies Act, 2008 (Act No. 71 of 2008);

"company"

has the same meaning ascribed to it in terms of section 1 of the Companies Act;

"Competition Commission"

means the Competition Commission established in terms of section 19 of the Competition Act, 1998 (Act No. 89 of 1998);

"conduct standard"

means a standard made in terms of section 106;

"Constitution"

means the Constitution of the Republic of South Africa, 1996;

"Consumer Protection Act"

means the Consumer Protection Act, 2008 (Act No. 68 of 2008);

"contractor"

means a person with whom a financial institution has entered into an outsourcing arrangement but does not include an independent contractor as described in the definition of "staff member";

"control function"

means each of the following:

(a)	The risk management function;

(b)	the compliance function;

(c)	the internal audit function; and

(d)	the actuarial function;

"Corporation"

means the Corporation for Deposit Insurance established by section 166AE;

[Definition inserted by section 35(d) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"Council for Medical Schemes"

means the Council for Medical Schemes established in terms of section 3 of the Medical Schemes Act;

"Court"

means a Superior Court as defined in section 1 of the Superior Courts Act, 2013 (Act No. 10 of 2013);

"covered deposit"

means the portion of a qualifying deposit covered by the Deposit Insurance Fund provided for in section 166AB;

[Definition inserted by section 35(e) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"credit"

has the same meaning ascribed to it in section 1 of the National Credit Act;

"credit agreement"

has the same meaning ascribed to it in section 1 of the National Credit Act;

"creditor hierarchy"

means the order in which a liquidator must, in terms of the Insolvency Act, read with sections 166U and 166W, apply property to satisfy claims of creditors;

[Definition inserted by section 35(f) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"critical function"

in relation to a designated institution, means a function that is—

(a)	essential to, or that contributes substantially to, financial stability and is performed by the designated institution; or

(b)	provided to, and essential to the continued operation of, the designated institution;

"debarment order"

means an order made in terms of section 153 or 205;

"deposit"

has the meaning assigned to it in section 1(1) of the Banks Act;

[Definition inserted by section 35(g) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"deposit insurance levy"

means a levy of that name that may be imposed by legislation, in accordance with section 166BC;

"deposit insurance premium"

means a premium imposed in terms of section 166BG and Schedule 5

[Definition substituted by the Schedule: Amendment of Laws: Section 4 of the Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums Act, 2022 (Act No. 12 of 2022), Notice No. 1512, GG47696, dated 9 December 2022 - effective 1 April 2023 per section (d), item (1) of Commencement Notice No. 3188, GG48291, dated 24 March 2023]

"depositor"

means a person that holds a deposit as defined in section 1 of the Banks Act;

"Deputy Commissioner"

means a person appointed as a Deputy Commissioner in terms of section 61(2), and includes a person acting as a Deputy Commissioner;

"Deputy Governor"

means a person appointed in terms of section 4 or 6(1)(a) of the Reserve Bank Act as a Deputy Governor of the Reserve Bank;

"designated institution"

means a designated institution as defined in section 29A;

[Definition inserted by section 35(h) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"designated institution in resolution"

means a designated institution in respect of which a determination in terms of section 166J(2), is in force;

"director"

means a director of the Corporation;

"deposit insurance premium"

means a premium imposed in terms of section 166BG and Schedule 5;

[Definition substituted by the Schedule: Amendment of Laws: Section 4 of the Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums Act, 2022 (Act No. 12 of 2022), Notice No. 1512, GG47696, dated 9 December 2022 - effective 1 April 2023 per section (d), item 1(a) of Commencement Notice No. 3188, GG48291, dated 24 March 2023]

"Director-General"

means the Director-General of the National Treasury, and includes a person acting as the Director-General;

"disqualified person"

means a person who—

(a)	is engaged in the business of a financial institution, or has a direct material financial interest in a financial institution, except as a financial customer;

(b)	is a member of the Cabinet, a member of the Executive Council of a province, a member of the National Assembly, a permanent delegate to the National Council of Provinces, a member of a provincial legislature or a member of a municipal council;

(c)	is an office-bearer of, or is in a remunerated leadership position in, a political party;

(d)	has at any time been removed from an office or position of trust;

(e)	is or has been subject to debarment in terms of a financial sector law;

(f)	is or has at any time been sanctioned for contravening a law relating to the regulation or supervision of financial institutions, or the provision of financial products or financial services or a corresponding law of a foreign jurisdiction;

(g)	is or has at any time been convicted of—

(i)	theft, fraud, forgery, uttering of a forged document, perjury or an offence involving dishonesty, whether in the Republic or elsewhere; or

(ii)

an offence in terms of the Prevention of Corruption Act, 1958 (Act No. 6 of 1958), the Corruption Act, 1992 (Act No. 94 of 1992), Parts 1 to 4, or section 17, 20 or 21 of the Prevention and Combating of Corrupt Activities Act, 2004 (Act No. 12 of 2004), or a corresponding offence in terms of the law of a foreign country;

(h)	is or has been convicted of any other offence committed after the Constitution came into effect, where the penalty imposed for the offence is or was imprisonment without the option of a fine;

(i)	is subject to a provisional sequestration order or is an unrehabilitated insolvent;

(j)	is disqualified from acting as a member of a governing body of a juristic person in terms of applicable legislation; or

(k)	is declared by the High Court to be of unsound mind or mentally disordered, or is detained in terms of the Mental Health Care Act, 2002 (Act No. 17 of 2002);

"document"

includes—

(a)	a book, record, security, invoice, account and any other information appearing on a physical object;

(b)	information stored or recorded electronically, digitally, photographically, magnetically or optically; and

(c)	any device on, or by means of, which information is recorded or stored;

"eligible financial institution"

means each of the following:

(a)	A financial institution licensed or required to be licensed as a bank in terms of the Banks Act;

(b)	a financial institution registered as a long-term insurer in terms of the Long-term Insurance Act or a short-term insurer in terms of the Short-term Insurance Act or licensed or required to be licensed in terms of the Insurance Act;

[Definition (b) substituted by item 1(1)(a) of Schedule 1 of Act No. 18 of 2017]

(c)	a market infrastructure; and

(d)	a financial institution prescribed in Regulations for the purposes of this definition;

"enforceable undertaking"

means an undertaking referred to in section 151 or 203;

"Executive Committee"

means the Committee established in terms of section 60;

"Financial Advisory and Intermediary Services Act"

means the Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002);

"financial conglomerate"

means a group of companies designated as a financial conglomerate in terms of section 160;

"financial crime"

includes an offence in terms of—

(a)	a financial sector law;

(b)	sections 2, 4, 5 and 6 of the Prevention of Organised Crime Act, 1998 (Act No. 121 of 1998);

(c)	the Financial Intelligence Centre Act; or

(d)	section 4 of the Protection of Constitutional Democracy against Terrorist and Related Activities Act, 2004 (Act No. 33 of 2004);

"financial customer"

means a person to, or for, whom a financial product, a financial instrument, a financial service or a service provided by a market infrastructure is offered or provided, in whatever capacity, and includes—

(a)	a successor in title of the person; and

(b)	the beneficiary of the product, instrument or service;

"financial inclusion"

means that all persons have timely and fair access to appropriate, fair and affordable financial products and services;

"financial institution"

means any of the following, other than a representative:

(a)	A financial product provider;

(b)	a financial service provider;

(c)	a market infrastructure;

(d)	a holding company of a financial conglomerate; or

(e)	a person licensed or required to be licensed in terms of a financial sector law;

"financial instrument"

means—

(a)	a share as defined in section 1 of the Companies Act;

(b)	a depository receipt and other equivalent instruments;

(c)	a debt instrument such as a debenture or a bond, but not a credit agreement;

(d)	money market securities as defined in section 1(1) of the Financial Markets Act;

(e)	a derivative instrument as defined in section 1(1) of the Financial Markets Act; or

(f)	a warrant, certificate, securitisation instrument or other instrument acknowledging, conferring or creating rights to subscribe to, acquire, dispose of, or convert, the financial instruments referred to in paragraphs (a) to (e);

"Financial Intelligence Centre"

means the Financial Intelligence Centre established in terms of section 2 of the Financial Intelligence Centre Act;

"Financial Intelligence Centre Act"

means the Financial Intelligence Centre Act, 2001 (Act No. 38 of 2001);

"Financial Markets Act"

means the Financial Markets Act, 2012 (Act No. 19 of 2012);

"financial product"

means a financial product as defined in section 2;

"financial product provider"

means a person that, as a business or as part of a business, provides a financial product;

"Financial Sector and Deposit Insurance Levies Act"

means the Financial Sector and Deposit Insurance Levies Act;

[Definition inserted by the Schedule: Amendment of Laws: Section 4 of the Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums Act, 2022 (Act No. 12 of 2022), Notice No. 1512, GG47696, dated 9 December 2022 - effective 1 April 2023 per section (d), item 1 of Commencement Notice No. 3188, GG48291, dated 24 March 2023]

"financial sector body"

means each of the following:

(a)	The Prudential Authority;

(b)	the Financial Sector Conduct Authority;

(c)	the Tribunal;

(d)	the Ombud Council;

(e)	the Office of the Pension Funds Adjudicator; and

(f)	the Office of the Ombud for Financial Services Providers;

(g)	the Reserve Bank, in relation to its resolution functions; and

(h)	the Corporation;

[Definition substituted by section 35(i) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"Financial Sector Conduct Authority"

means the authority established in terms of section 56;

"financial sector law"

means—

(a)

this Act;

(b)	a law listed in Schedule 1;

(c)	a Regulation made in terms of this Act or made in terms of a law referred to in Schedule 1; or

(d)	a regulatory instrument made in terms of this Act or made in terms of a law referred to in Schedule 1;

"financial sector regulator"

means—

(a)	the Prudential Authority;

(b)	the Financial Sector Conduct Authority;

(c)	the National Credit Regulator, but only in respect of Parts 2, 3 and 5 of Chapter 2, and Parts 1, 2 and 3 of Chapter 5; or

(d)	the Financial Intelligence Centre, but only in respect of Parts 2, 3 and 5 of Chapter 2, and Parts 1, 2 and 3 of Chapter 5;

"financial service"

means a financial service as defined in section 3;

"financial service provider"

means a person that, as a business or as part of a business, provides a financial service;

"financial stability"

means financial stability as defined in section 4;

"Financial Stability Oversight Committee"

means the committee established in terms of section 20;

"financial system"

means the system of institutions and markets through which financial products, financial instruments and financial services are provided and traded, and includes the operation of a market infrastructure and a payment system;

"Financial System Council of Regulators"

means the council established in terms of section 79(1);

"financial year"

means a period of 12 months commencing on 1 April of each year;

"flac instrument"

means a financial instrument issued by a designated institution, being an instrument that—

(a)	complies with the requirements prescribed by a prudential standard for a flac instrument; and

(b)	is of a kind that is not counted for the purpose of determining whether the designated institution satisfies the applicable requirements of—

(i)	Chapter VI of the Banks Act;

(ii)	Chapter V of the Mutual Banks Act, 1993 (Act No. 124 of 1993);

(iii)

Chapter III of the Co-operative Banks Act, 2007 (Act No. 40 of 2007); or

(iv)	Chapter 6 of the Insurance Act, 2017 (Act No. 18 of 2017), or prudential standards made for the purposes of any of those provisions;

[Definition inserted by section 35(j) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"foreign financial instrument"

means an instrument provided outside the Republic, or provided by a person outside the Republic, that is similar to, or corresponds to, a financial instrument;

"foreign financial product"

means a facility or arrangement provided outside the Republic, or provided by a person outside the Republic, that is similar to, or corresponds to, a financial product;

"Friendly Societies Act"

means the Friendly Societies Act, 1956 (Act No. 25 of 1956);

"Fund"

means the Deposit Insurance Fund established by section 166BD;

[Definition inserted by section 35(k) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"governing body"

means—

(a)

in relation to a financial institution, a person or body of persons, whether elected or not, that manages, controls, formulates the policy and strategy of the financial institution, directs its affairs or has the authority to exercise the powers and perform the functions of the financial institution, and includes—

(i)	the general partner of an en commandite partnership or the partners of any other partnership;

(ii)	the members of a close corporation;

(iii)

the trustees of a trust;

(iv)	the board of directors of a company; and

(v)	the board of a pension fund referred to in section 7A of the Pension Funds Act; and

(b)	in relation to an ombud scheme, the body of persons that oversees the affairs of the ombud scheme;

"Governor"

means the person appointed in terms of section 4 or 6(1)(a) of the Reserve Bank Act as the Governor of the Reserve Bank;

"group of companies"

has the same meaning ascribed to it in terms of section 1 of the Companies Act;

"head of a control function"

means a person appointed by a financial institution to ensure the performance of a control function, and includes a person so appointed through an outsourcing arrangement;

"holding company"

means a holding company as defined in section 1 of the Companies Act, being a company incorporated in the Republic;

"index"

means any figure—

(a)	that is published or made available to the public; and

(b)	that is regularly determined—

(i)	entirely or partially by the application of a formula or any other method of calculation, or by an assessment; and

(ii)	on the basis of the value of one or more underlying assets or prices, and any derivative thereof; and

(c)	is determined to be an index for this purpose by the Financial Sector Conduct Authority;

"industry ombud scheme"

means an arrangement with the following characteristics:

(a)	The arrangement is established by one or more financial institutions;

(b)	the purpose of the arrangement is to facilitate mediation and resolution of complaints from financial customers about financial institutions that are members of the ombud scheme; and

(c)	mediation or resolution of the complaints in terms of the ombud scheme is undertaken by an ombud appointed in terms of the ombud scheme’s governing rules;

"Insolvency Act"

means the Insolvency Act, 1936 (Act No. 24 of 1936);

[Definition inserted by section 35(l) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"Insurance Act"

means the Insurance Act, 2017 (Act No. 18 of 2017)

[Definition inserted by item 1(1)(b) of Schedule 1 of Act No. 18 of 2017]

"Inter-Ministerial Council"

means the Financial Sector Inter-Ministerial Council established in terms of section 83(1);

"interpretation ruling"

means a statement in terms of section 142;

"inter-related"

has the same meaning ascribed to it in terms of section 1 of the Companies Act;

"investigator"

means a person appointed as an investigator in terms of section 134;

"joint standard"

means a standard made in terms of section 107;

"juristic person"

includes—

(a)	a company, close corporation or co-operative incorporated or registered in terms of legislation whether in the Republic or elsewhere;

(b)	an association, partnership, club or other body of persons of whatever description, corporate or unincorporated;

(c)	a trust or trust fund;

(d)	an entity referred to in paragraph (a), (b) or (c) that is in liquidation, under business rescue proceedings or under judicial management; and

(e)	the estate of a deceased or insolvent person;

"key person"

in relation to a financial institution, means each of the following:

(a)	A member of the governing body of the financial institution;

(b)	the chief executive officer or other person in charge of the financial institution;

(c)	a person other than a member of the governing body of the financial institution who makes or participates in making decisions that—

(i)	affect the whole or a substantial part of the business of the financial institution; or

(ii)	have the capacity to affect significantly the financial standing of the financial institution;

(d)	a person other than a member of the governing body of the financial institution who oversees the enforcement of policies and the implementation of strategies approved or adopted by the governing body of the financial institution;

(e)	the head of a control function of the financial institution; and

(f)	the head of a function of the financial institution that a financial sector law requires to be performed;

"legal practitioner"

means a legal practitioner as defined in section 1 of the Legal Practice Act, 2014 (Act No. 28 of 2014);

"leniency agreement"

means an agreement referred to in section 156;

"levy"

means a levy imposed in terms of the Financial Sector and Deposit Insurance Levies Act, and includes interest payable on an unpaid levy;

"licence"

includes a written licence, registration, approval, recognition, permission, consent or any other authorisation in terms of a financial sector law, however it is described in that law, to provide a financial product, financial service or a market infrastructure;

"Long-term Insurance Act"

means the Long-term Insurance Act, 1998 (Act No. 52 of 1998);

"market infrastructure"

means each of the following, as they are defined in section 1(1) of the Financial Markets Act:

(a) A central counterparty;

(b) a central securities depository;

(d) an exchange; and

(e) a trade repository;

"Medical Schemes Act"

means the Medical Schemes Act, 1998 (Act No. 131 of 1998);

"member"

means a member of the Corporation, in accordance with section 166AG;

[Definition inserted by the Schedule: Amendment of Laws: Section 4 of the Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums Act, 2022 (Act No. 12 of 2022), Notice No. 1512, GG47696, dated 9 December 2022 - effective 1 April 2023 per section (d), item (1) of Commencement Notice No. 3188, GG48291, dated 24 March 2023]

"Minister"

means the Minister of Finance;

"National Credit Act"

means the National Credit Act, 2005 (Act No. 34 of 2005);

"National Credit Regulator"

means the National Credit Regulator established in terms of section 12 of the National Credit Act;

"National Payment System Act"

means the National Payment System Act, 1998 (Act No. 78 of 1998);

"National Treasury"

means the National Treasury established in terms of section 5 of the Public Finance Management Act;

"ombud"

means each of the following:

(a)	The Adjudicator as defined in section 1(1) of the Pension Funds Act;

(b)	the Ombud for Financial Services Providers as defined in section 1(1) of the Financial Advisory and Intermediary Services Act;

(c)	a person declared by a specific financial sector law to be a statutory ombud; and

(d)	a person who has the function, in terms of the rules of a recognised industry ombud scheme, of mediating or resolving complaints to which the scheme applies;

"Ombud Board"

means the Board of the Ombud Council established in terms of section 179(1);

"Ombud Council"

means the Ombud Council established in terms of section 175;

"Ombud Council rule"

means a rule made by the Ombud Council in terms of section 201;

"ombud scheme"

means—

(a) an industry ombud scheme; or

(b) a statutory ombud scheme;

"orderly resolution of a designated institution"

means the management of the affairs of the designated institution as provided in Chapter 12A in a way that—

(a)	assists in maintaining financial stability;

(b)	ensures that the critical functions performed by the designated institution continue to be performed; and

(c)	in the case of a bank, protects the interests of depositors;’

[Definition inserted by section 35(m) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"organ of state"

has the same meaning ascribed to it in terms of section 239 of the Constitution;

"outsourcing arrangement"

in relation to a financial institution, means an arrangement between a financial institution and another person for the provision to or for the financial institution of any of the following:

(a)	A control function;

(b)	a function that a financial sector law requires to be performed or requires to be performed in a particular way or by a particular person; and

(c)	a function that is integral to the nature of a financial product or financial service that the financial institution provides, or is integral to the nature of the market infrastructure,

but does not include—

(i)	a contract of employment between the financial institution and a person referred to in paragraph (a) or (b) of the definition of "staff member"; or

(ii)	an arrangement between a financial institution and a person for the person to act as a representative of the financial institution;

"panel"

means a panel of the Tribunal constituted in terms of section 224;

"panel list"

means the list referred to in section 225;

"panel member"

means a member of a panel;

"party"

to proceedings on a reconsideration of a decision by the Tribunal, means—

(a)	the person who applied for the reconsideration; and

(b)	the decision-maker that made the decision;

"payment service"

means a service provided to a financial customer to facilitate payments to, or from, the financial customer;

"payment system"

has the same meaning ascribed to it in terms of section 1 of the National Payment System Act;

"payment system operator"

means an operator of a payment system, and includes—

(a)	a designated settlement system operator as defined in section 1 of the National Payment System Act; and

(b)	a payment clearing house system operator as defined in section 1 of the National Payment System Act;

[Definition inserted by section 35(n) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"payment system participant"

includes—

(a)	a settlement system participant as defined in section 1 of the National Payment System Act;

(b)	a Reserve Bank settlement system participant as defined in section 1 of the National Payment System Act; and

(c)	a clearing system participant as defined in section 1 of the National Payment System Act;

"Pension Funds Act"

means the Pension Funds Act, 1956 (Act No. 24 of 1956);

"person"

means a natural person or a juristic person, and includes an organ of state;

"placing a designated institution in resolution"

refers to making a determination in terms of section 166J(2) in relation to the designated institution;

[Definition inserted by section 35(o) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"premium period"

means the period from the first day of a calendar month to the last day of that calendar month, in respect of which a deposit insurance premium is determined in terms of section 166BG and Schedule 5;

[Definition inserted by the Schedule: Amendment of Laws: Section 4 of the Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums Act, 2022 (Act No. 12 of 2022), Notice No. 1512, GG47696, dated 9 December 2022 - effective 1 April 2023 per section (d), item (1) of Commencement Notice No. 3188, GG48291, dated 24 March 2023]

"Promotion of Administrative Justice Act"

means the Promotion of Administrative Justice Act, 2000 (Act No. 3 of 2000);

"Protection of Personal Information Act"

means the Protection of Personal Information Act, 2013 (Act No. 4 of 2013);

"provision of a benchmark"

includes—

(a)	administering the arrangements for determining a benchmark;

(b)	collecting, analysing or processing input data for the purpose of determining a benchmark; and

(c)	determining a benchmark through the application of a formula or other method of calculation or by an assessment of input data provided for that purpose;

"Prudential Authority"

means the authority established in terms of section 32;

"Prudential Committee"

means the committee established in terms of section 41;

"prudential standard"

means a standard made in terms of section 105;

"Public Finance Management Act"

means the Public Finance Management Act, 1999 (Act No. 1 of 1999);

"qualifying deposit"

means a deposit with a bank, other than—

(a)	a deposit evidenced by a bearer deposit instrument; or

(b)	a deposit where the depositor holds the deposit in the capacity of—

(i)	a financial institution, excluding a financial institution that is a co-operative financial institution as defined in section 1(1) of the Co-operative Banks Act;

(ii)	the national government, a provincial government, a local government or an organ of state;

(iii)

an entity listed in Schedule 2 to the Public Finance Management Act;

(iv)	the Corporation for Public Deposits established by section 2 of the Corporation for Public Deposits Act, 1984 (Act No. 46 of 1984); or

(v)	the Public Investment Corporation established by section 2 of the Public Investment Corporation Act, 2004 (Act No. 23 of 2004);

[Definition inserted by section 35(p) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"qualifying stake"

means, in respect of a financial institution that—

(a)	is a company, that a person, directly or indirectly, alone or together with a related or inter-related person—

(i)	holds at least 15% of the issued shares of the financial institution;

(ii)	has the ability to exercise or control the exercise of at least 15% of the voting rights attached to securities of the financial institution;

(iii)

has the ability to dispose of or control the disposal of at least 15% of the financial institution’s securities; or

(iv)	holds rights in relation to the financial institution that, if exercised, would result in the person, directly or indirectly, alone or together with a related or inter-related person—

(aa)	holding at least 15% of the securities of the financial institution;

(bb)	having the ability to exercise or control at least 15% of the voting rights attached to shares or other securities of the financial institution; or

(cc)	having the ability to dispose of or direct the disposal of at least 15% of the financial institution’s securities;

(b)	is a close corporation, that a person, directly or indirectly, alone or together with a related or inter-related person, holds at least 15% of the members’ interests or controls, or has the right to control, at least 15% of members’ votes in the close corporation;

(c)	is a trust, that a person has, directly or indirectly, alone or together with a related or inter-related person—

(i)	the ability to exercise or control the exercise of at least 15% of the votes of the trustees;

(ii)	the power to appoint at least 15% of the trustees; or

(iii)

the power to appoint or change any beneficiaries of the trust;

"recognised industry ombud scheme"

means an industry ombud scheme that is recognised in terms of section 194;

"Regulation"

means a Regulation made in terms of section 288;

"regulator’s directive"

means a directive issued by a financial sector regulator in terms of section 143, 144 or 159;

"regulatory instrument"

means each of the following:

(a)	A prudential standard;

(b)	a conduct standard;

(c)	a joint standard;

(d)	an Ombud Council rule;

(e)	a determination of fees in terms of section 237(1)(a);

(f)	an instrument identified as a regulatory instrument in a financial sector law; and

(g)	an instrument amending or revoking an instrument referred to in paragraphs (a) to (f);

"related party"

in relation to a person (the "first person"), means a person connected to the first person in a manner described in section 2(1)(a), (b) or (c) of the Companies Act;

"Register"

means the Financial Sector Information Register referred to in section 256;

"representative"

in relation to a financial institution, means a representative of the institution in terms of the Financial Advisory and Intermediary Services Act;

"Reserve Bank"

means the South African Reserve Bank as referred to in section 223 of the Constitution, read with the Reserve Bank Act;

"Reserve Bank Act"

means the South African Reserve Bank Act, 1989 (Act No. 90 of 1989);

"resolution"

of a designated institution, means the management of the affairs of the designated institution as provided for in Chapter 12A;

[Definition inserted by section 35(q) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"resolution action"

means action in terms of section 166S;

"resolution function"

means a function or a power—

(a)	conferred on the Reserve Bank for the purpose of; or

(b)	performed by the Reserve Bank in connection with,

the resolution of a designated institution (including a function or power conferred or performed for the purpose of reducing the risk that a designated institution may need to be placed in resolution);

"resolution practitioner",

for a designated institution, means a person appointed in terms of section 166O;

"responsible authority"

for a financial sector law, means the responsible authority for the financial sector law as defined in section 5;

"section 27 memorandum of understanding"

means a memorandum of understanding referred to in section 27;

"section 77 memorandum of understanding"

means a memorandum of understanding referred to in section 77;

"securities services"

has the same meaning ascribed to it in terms of section 1(1) of the Financial Markets Act;

"service provided by a market infrastructure"

means business conducted or a function or duty performed by a market infrastructure in terms of the Financial Markets Act, and "services provided by market infrastructures" has a similar meaning;

"share"

means a share as defined in section 1 of the Companies Act;

[Definition inserted by section 35(r) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"Short-term Insurance Act"

means the Short-term Insurance Act, 1998 (Act No. 53 of 1998);

"significant owner"

of a financial institution, means a significant owner of the institution as described in section 157;

"special levy"

means a levy imposed as a special levy in terms of the Financial Sector and Deposit Insurance Levies Act, and includes interest payable on an unpaid special levy;

"specific financial sector law"

means a financial sector law, other than this Act, regulating a specific type of financial product, financial service or market infrastructure;

"staff member"

of a person, means—

(a)	an employee, as defined in section 213 of the Labour Relations Act, 1995 (Act No. 66 of 1995);

(b)	a natural person who is seconded to the person;

(c)	a natural person who is engaged by the person on contract as an independent contractor to provide goods or services to the person or to perform functions or duties on behalf of the person under terms specified in the contract, but not in terms of an outsourcing arrangement;

"standard"

means any of the following:

(a)	A prudential standard;

(b) a conduct standard; and

"statutory ombud"

means each of the following:

(a)	The Adjudicator as defined in section 1(1) of the Pension Funds Act;

(b)	the Ombud for Financial Services Providers as defined in section 1(1) of the Financial Advisory and Intermediary Services Act; and

(c)	a person declared by a specific financial sector law to be a statutory ombud;

"statutory ombud scheme"

means a scheme declared by a specific financial sector law to be a statutory ombud scheme;

"supervised entity"

means each of the following:

(a)	A licensed financial institution;

(aA)	a designated institution that is not otherwise a licensed financial institution;

(b)	a person with whom a licensed financial institution has entered into an outsourcing arrangement; and

(c)	a representative of a financial institution;

[Definition substituted by section 35(s) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"supervisory on-site inspection"

means an inspection as contemplated in Part 3 of Chapter 9;

"systemic event"

means an event or circumstance, including one that occurs or arises outside the Republic, that may reasonably be expected to have a substantial adverse effect on the financial system or on economic activity in the Republic, including an event or circumstance that leads to a loss of confidence that operators of, or participants in, payment systems, settlement systems or financial markets, or financial institutions, are able to continue to provide financial products or financial services, or services provided by a market infrastructure;

"systemically important financial institution"

means a financial institution designated in terms of section 29;

"systemically important payment system"

means a payment system designated in terms of section 29B;

[Definition inserted by section 35(t) 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)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

"taxable income"

has the same meaning ascribed to it in terms of section 1 of the Income Tax Act, 1962 (Act No. 58 of 1962);

"this Act"

includes the Regulations and regulatory instruments made in terms of this Act;

"transformation of the financial sector"

means transformation as envisaged by the Financial Sector Code for Broad-Based Black Economic Empowerment issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003);

"Tribunal"

means the Financial Services Tribunal established in terms of section 219(1);

"Tribunal member"

means a member of the Tribunal referred to in section 220;

"Tribunal rules"

means rules made in terms of section 227;

"trust"

has the same meaning ascribed to it in terms of section 1 of the Trust Property Control Act, 1988 (Act No. 57 of 1988);

"trustee"

has the same meaning ascribed to it in terms of section 1 of the Trust Property Control Act, 1988 (Act No. 57 of 1988);

"website"

means a website as defined in section 1 of the Electronic Communications and Transactions Act, 2002 (Act No. 25 of 2002); and

"winding-up"

means the process of dissolving a financial institution that includes the selling of all assets, the paying off of creditors and the distribution of any remaining assets.

(2)	In this Act, unless the context indicates otherwise, a word or expression derived from, or that is another grammatical form of, a word or expression defined in this Act has a corresponding meaning.

(3)

A reference in a financial sector law, or in an instrument made or issued in terms of a financial sector law, to compliance with financial sector laws or to compliance with a particular financial sector law includes a reference to compliance with requirements in instruments made or issued in terms of the relevant financial sector laws.

Financial Sector Regulation Act, 2017 (Act No. 9 of 2017)

Chapter 1 : Interpretation, Object and Administration of Act

Part 1 : Interpretation

1. Definitions

"administrative action"

"agreement"

"bank"

"Board"

"bridge company"

"Chief Executive Officer of the Corporation"

"Commissioner"

"company"

"Corporation"

"Council for Medical Schemes"

"covered deposit"

"creditor hierarchy"

"critical function"

"deposit"

"deposit insurance levy"

"deposit insurance premium"

"depositor"

"designated institution"

"designated institution in resolution"

"director"

"deposit insurance premium"

"eligible financial institution"

"Financial Sector and Deposit Insurance Levies Act"

"financial sector body"

"flac instrument"

"Fund"

"Insolvency Act"

"Insurance Act"

"Inter-Ministerial Council"

"Long-term Insurance Act"

"member"

"orderly resolution of a designated institution"

"panel"

"payment system operator"

"payment system participant"

"placing a designated institution in resolution"

"premium period"

"Prudential Authority"

"qualifying deposit"

"resolution"

"resolution action"

"resolution function"

"resolution practitioner",

"share"

"systemically important payment system"