Act No. and year
|
Short Title
|
Extent of repeal or amendment
|
Act No. 24 of 1956
|
Pension Funds Act, 1956
|
| 1. | The amendment of section 1— |
| (a) | by the insertion in subsection (1) after the definition of "audit-exempt fund" of the following definition: |
" 'Authority' means the Financial Sector Conduct Authority established in terms of section 56 of the Financial Sector Regulation Act;";
| (b) | by the insertion in subsection (1) after the definition of "complaint" of the following definition: |
" 'conduct standard' has the same meaning ascribed to it in terms of section 1(1) of the Financial Sector Regulation Act;";
| (c) | by the insertion in subsection (1) after the definition of "fair value" of the following definition: |
"'Financial Sector Regulation Act' means the Financial Sector Regulation Act, 2017;";
| (d) | by the deletion in subsection (1) of the definitions of "Financial Services Board" and "prescribed"; |
| (e) | by the insertion in subsection (1) after the definition of "investment reserve account" of the following definition: |
" 'joint standard' has the same meaning ascribed to it in terms of section 1(1) of the Financial Sector Regulation Act;";
| (f) | by the insertion in subsection (1) after the definition of "provident preservation fund" of the following definition: |
"'prudential standard' has the same meaning ascribed to it in terms of section 1(1) of the Financial Sector Regulation Act;";
| (g) | by the insertion in subsection (1) after the definition of "publish" of the following definition: |
" 'Register' means the Financial Sector Information Register referred to in section 256 of the Financial Sector Regulation Act;";
| (h) | by the deletion in subsection (1) of the definition of "registrar"; |
| (i) | by the insertion in subsection (1) after the definition of "this Act" of the following definition: |
" 'Tribunal' means the Financial Services Tribunal established in terms of section 219 of the Financial Sector Regulation Act;"; and
| (j) | by the addition of the following subsection: |
| "(3) | Unless the context otherwise indicates, words and expressions not defined in subsection (1) have the same meaning ascribed to them in terms of the Financial Sector Regulation Act.". |
|
|
|
| 2. | The insertion after section 1 of the following sections: |
"Relationship between Act and Financial Sector Regulation Act
1A.
| (1) | A reference in this Act to the registrar or the Financial Services Board must be read as a reference to the Authority. |
| (2) | Except as otherwise provided by this Act or the Financial Sector Regulation Act, the powers and duties of the Authority in terms of this Act are in addition to the powers and duties that it has in terms of the Financial Sector Regulation Act. |
| (3) | A reference in this Act to the Authority determining or publishing a matter by notice in the Gazette must be read as including a reference to the Authority determining or publishing the matter by notice published in the Register. |
| (4) | Unless expressly provided otherwise in this Act, or this Act requires a matter to be prescribed by regulation, a reference in this Act to a matter being prescribed must be read as— |
| (a) | a reference to the matter being prescribed in a prudential standard, a conduct standard or a joint standard; or |
| (b) | a reference to the Authority determining the matter in writing and registering the determination in the Register. |
(5)
| (a) | A reference in this Act to the Authority announcing or publishing information or a document on a web site must be read as a reference to the Authority publishing the information or document in the Register. |
| (b) | The Authority may also publish the information or document on its web site. |
| (6) | A reference in this Act to a determined or prescribed fee must be read as a reference to the relevant fee determined in terms of section 237 and Chapter 16 of the Financial Sector Regulation Act. |
| (7) | A reference in this Act to an appeal of a decision of the Authority must be read as a reference to a reconsideration of the decision by the Tribunal in terms of the Financial Sector Regulation Act. |
Regulatory instruments
| 1B. | For the purposes of the definition of "regulatory instrument" in section 1(1) of the Financial Sector Regulation Act, any matter prescribed by the Authority in respect of which notice in the Gazette is specifically required by this Act is a regulatory instrument.". |
|
|
|
3. The repeal of section 2(5).
|
|
|
4. The repeal of section 3.
|
|
|
5. The amendment of section 18—
(a) by the substitution for subsection (1) of the following subsection:
| "(1) | [The registrar may prescribe criteria for financial soundness, and when] If any return under this Act indicates that a registered fund is not in a sound financial condition as determined in accordance with prudential standards, the [registrar] Authority may, save as provided in section 29, direct the fund to submit a scheme setting out the arrangements which have been made, or which it intends to make, to bring the fund into a financially sound condition within such period, and subject to such conditions, as determined by the [registrar] Authority."; and |
| (b) | by the substitution in subsection (5) for paragraph (a) of the following paragraph: |
| "(a) | The [registrar] Authority may at any time, [following an inspection carried out or investigation conducted under section 25, or for any other reason which the registrar may consider] if it is necessary in the interests of the members of a fund, direct that an investigation in terms of section 16 or an audit or both an audit and such investigation be conducted into the financial position of a fund generally or with reference to any financial aspect of the fund.". |
|
|
|
6. The amendment of section 19—
| (a) | by the substitution in subsection (5) for the words preceding paragraph (a) of the following words: |
"A registered fund may, if its rules so permit and subject to [the regulations] prudential standards, grant a loan to a member by way of investment of its funds or furnish a guarantee in favour of a person other than the fund in respect of a loan granted or to be granted by such other person to a member to enable the member—"; and
(b) by the deletion of subsection (7).
|
|
|
| 7. | The repeal of section 25. |
|
|
|
| 8. | The substitution in section 26 for subsection (1) of the following subsection: |
| "(1) | [The registrar may, after considering the interests of the members of a fund (or of the several categories of members if there is more than one such category)— |
| (a) | declare that a specific practice or method of conducting business is unacceptable, irregular or undesirable and that such fund, administrator or person must refrain from conducting such practice or method of conducting business; or |
| (b)] | Without limiting what a directive of a financial sector regulator may include, the Authority may, through a directive, direct that the rules of [the] a fund, including rules relating to the appointment, powers, remuneration (if any) and removal of the board, be amended if [the results of an inspection or on-site visit under section 25 necessitates amendment of the rules of the fund or if the registrar is of the opinion that] the fund— |
| [(i)](a) | is not in a sound financial condition or does not comply with the provisions of this Act or the regulations affecting the financial soundness of the fund; |
| [(ii)](b) | has failed to act in accordance with the provisions of section 18; or |
| [(iii)](c) | is not being managed in accordance with this Act or the rules of the fund." |
|
|
|
| 9. | The insertion in Chapter VA before section 30A of the following section: |
"Ombud scheme"
| 30AA. | The ombud scheme in relation to complaints regulated in terms of this Chapter is declared to be a statutory ombud scheme for the purposes of the Financial Sector Regulation Act. " |
|
|
|
| 10. | The substitution in section 30C(1) for the words preceding paragraph (a) of the following words: |
"The Minister shall[, after consultation with the Financial Services Board,] appoint—".
|
|
|
| 11. | The substitution for section 30D of the following section: |
"Main object of Adjudicator
30D.
| (1) | The main object of the Adjudicator shall be to dispose of complaints lodged in terms of section 30A(3) of this Act, and complaints for which the Adjudicator is designated in terms of section 211 of the Financial Sector Regulation Act [in a procedurally fair, economical and expeditious manner]. |
| (2) | In disposing of complaints in terms of subsection (1) the Adjudicator must— |
| (a) | apply, where appropriate, principles of equity; |
| (b) | have regard to the contractual arrangement or other legal relationship between the complainant and any financial institution; |
| (c) | have regard to the provisions of this Act; and |
| (d) | act in a procedurally fair, economical and expeditious manner.". |
|
|
|
| 12. | The substitution in section 30Q for the words preceding paragraph (a) of the following words: |
"The Adjudicator may [with the concurrence of the Financial Services Board]—".
|
|
|
| 13. | The substitution in section 30R(1) for paragraph (a) of the following paragraph: |
| "(a) | funds [provided by the Financial Services Board] accruing to the Adjudicator in terms of legislation on the grounds of a budget submitted to, and approved [of] by, the [Financial Services Board] Minister; and". |
|
|
|
| 14. | The substitution in section 30S for the expression "Financial Services Board", wherever occurring in the section, of the expression "Minister". |
|
|
|
| 15. | The substitution in section 30T for subsection (1) of the following subsection: |
| "(1) | [Despite the provisions of the Public Finance Management Act, 1999 (Act No. 1 of 1999), the board of the Financial Services Board as defined in section 1 of the Financial Services Board Act, 1990 (Act No. 97 of 1990),] The Adjudicator is the accounting authority of the Office of the Adjudicator.". |
|
|
|
| 16. | The repeal of sections 33, 33A and 34. |
|
|
|
| 17. | The deletion in section 36 of subsections (1)(bA) and (3). |
|
|
|
| 18. | The deletion in section 37 of subsections (2) to (5). |
|
|
|
| 19. | The amendment of the arrangement of sections— |
| (a) | by the insertion after item 1 of the following items: |
"1A. Relationship between Act and Financial Sector Regulation Act
1B. Regulatory Instruments"; and
| (b) | by the insertion before item 30A of the following item: |
"30AA. Ombud scheme".
|
