[Section 30 heading substituted by section 43(a) and 61(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]
[Words preceding section 30(1)(a) substituted by section 43(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]
| (a) | Solvency measures and capital requirements, which may include requirements in relation to counter-cyclical capital buffers; |
| (d) | organisational structures; |
| (e) | risk management arrangements, including guarantee arrangements; |
| (f) | sectoral and geographical exposures; |
| (g) | required statistical returns; and |
| (h) | [Section 30(1)(h) deleted by section 43(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] |
| (1A) | To mitigate the risk that a designated institution may need to be placed in resolution, the Reserve Bank may, after consulting the Prudential Authority, give either or both of the following directives to the Prudential Authority: |
| (a) | A directive to make one or more prudential standards that do any of the following: |
| (ii) | prescribe requirements for the conduct of valuations for the purposes of section 166Q; or |
| (iii) | prescribe requirements for record keeping, data management and reporting to the Reserve Bank or the Prudential Authority; and |
| (b) | a directive to issue a regulator’s directive to a specified designated institution requiring the designated institution to hold flac instruments to at least the value specified in the Reserve Bank’s directive. |
[Section 30(1A) inserted by section 43(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]
[Section 30(1B) inserted by section 43(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]
| (1C) | Without limiting the matters that the Reserve Bank must consider in relation to subsection (1A)(b) in a particular case— |
| (a) | it must consider the— |
| (i) | capital that the designated institution is required to hold in terms of a financial sector law; |
| (ii) | assets and liabilities of the designated institution; |
| (iii) | difficulties that the Reserve Bank may face in performing its resolution functions in relation to the designated institution if the designated institution does not hold flac instruments to at least the value proposed; and |
| (iv) | impact on the viability of the designated institution of holding flac instruments to at least the value proposed; and |
| (b) | it may also consider international best practice. |
[Section 30(1C) inserted by section 43(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]
| (2) | The Prudential Authority may comply with a directive in terms of subsection (1) or (1A). |
[Section 30(2) substituted by section 43(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]
