Financial Sector Regulation Act, 2017 (Act No. 9 of 2017)RegulationsDeposit Insurance Regulations, 2024Chapter II: Coverage4. Coverage rules |
| (1) | The Corporation must cover a sole proprietor as a separate qualifying depositor. |
| (2) | The Corporation must cover an informal beneficiary account holder as a formal beneficiary account when a bank— |
| (a) | collects and maintains the constitution document of an informal beneficiary account; |
| (b) | can identify and record the members and their entitlement balances for a reporting date in terms of the constitution document for an informal beneficiary account; and |
| (c) | reports the account as a formal beneficiary account to the Corporation. |
| (3) | The Corporation must cover a co-operative financial institution as an informal beneficiary account holder. |
| (4) | The Corporation must― |
| (a) | cover a qualifying depositor’s share in a joint account according to the sharing ratio specified by the account holders in the records of the bank; or |
| (b) | if the account holders did not specify a sharing ratio in the records of the bank, cover a qualifying depositor’s share in a joint account by dividing the account balance equally between the account holders. |
| (5) | If a bank is a party to an amalgamation or merger transaction as contemplated in section 54 of the Banks Act, the Corporation must cover a qualifying depositor of an affected bank for their covered deposits held at the bank for as long as the bank remains a member of the Corporation. |
| (6) | For the purposes of subregulation (5), the Corporation must cover a qualifying depositor of an affected bank as follows: |
| (a) | Prior to the transaction effective date, the Corporation must cover a qualifying depositor of each affected bank for their covered deposits; or |
| (b) | after the transaction effective date, the Corporation must cover a qualifying depositor of the amalgamated or combined bank for their covered deposits. |