Legal Practice Act, 2014 (Act No. 28 of 2014) Regulations Regulations under Section 109(1)(bA) of the Act 6. Government and other securities in which Board can invest surplus funds

 

 

“asset in liquid form” means—

 

“asset portfolio” in relation to the fund, means the portfolio of underlying assets comprising the fund;

 

“bank” means a bank as defined in the Banks Act, 1990 (Act No. 94 of 1990), and a mutual bank as defined in the Mutual Banks Act, 1993 (Act No. 124 of 1993), registered otherwise than provisionally;

 

“banker’s acceptance” means a bill as defined in the Bills of Exchange Act, 1964 (Act No. 34 of 1964), drawn on and accepted by a bank;

 

“bill of exchange” means a short-term negotiable debt instrument;

 

“call option” means a derivative instrument that allows the holder the right, but not an obligation, to buy a pre-determined quantity of an underlying asset at a predetermined price, on or before a predetermined date;

 

“call warrant” means an instrument that gives the holder the right to buy shares from the issuer;

 

“Code of Practice” means the Code of Practice Relating to Fund Classification for South African Regulated Collective Investment Portfolios, as issued by the Association of Collective Investments South Africa, which Code of Practice became effective on 16 September 2008;

 

“Collective Investment Schemes Control Act” means the Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002);

 

“collective investment scheme” means a scheme as defined in the Collective Investment Schemes Control Act;

 

“commercial paper” means any negotiable acknowledgement of short-term debt issued by a company;

 

“contract size” or “multiplier”, in relation to a financial instrument, means the factor by which the price of an underlying asset is multiplied to arrive at the value of one contract as specified in either—

 

“convertible debenture” means a debenture in terms of which the debenture holder has the option to return the debenture to the issuer in exchange for a specified number of equity shares of that issuer within a specified time period;

 

“core liabilities” refers to the liabilities of the Fund as determined by section 72(2) of the Act;

 

“credit default swap agreement” means an agreement between two parties to transfer the credit exposure of fixed income assets according to a prearranged formula which is specified at the time the agreement is entered into;

 

“debenture” includes debenture stock, debenture bonds and any other securities of a company, whether constituting a charge on the assets of the company or not;

 

“delta” or “delta factor” in relation to a financial instrument, means the requirement for an exposure calculation for financial instruments as determined in accordance with—

 

“deposit” means a deposit as defined in the Banks Act, 1990;

 

“direct holding” means a holding without any intermediaries;

 

“effective exposure” in relation to a financial instrument, means the exposure as calculated in terms of subregulation (18);

 

“equities” means—

 

“financial instrument” means—

Provided such instrument is fully covered, is priced on a mark-to-market basis daily and complies with all limits applicable to it as determined by the exchange on which it is listed;

 

“forward rate agreement” means an agreement between two parties to borrow or lend a specified amount at a specified future date at an interest rate that is fixed at the time the agreement is entered into;

 

“futures contract” means a derivative instrument that obligates the holder to buy a predetermined quantity of an underlying asset at a predetermined price, on or before a predetermined date;

 

“index futures contract” means a future on an index;

 

“index tracking certificate” means a certificate representing all the companies within a specified index according to their index weighting on an exchange;

 

“Land Bank bill” means a bill or note as defined in the Bills of Exchange Act, 1964, drawn, accepted or issued by the Land and Agricultural Development Bank of South Africa, established in terms of the Land and Agricultural Development Bank Act, 2002 (Act No. 15 of 2002);

 

“listed investment company” means a listed company that has as its main objective the generation of a return from its underlying investments, and not for the purpose of exercising control;

 

“money market instrument” means a—

in the currency of the Republic and which at the time of inclusion in the Fund may not have a period of maturity exceeding 12 months;

 

“negotiable certificate of deposit” means a certificate of deposit issued by a bank and payable to order or to bearer;

 

“nominal exposure” in relation to a financial instrument, means the exposure as calculated in subregulation (18);

 

“non-equity government securities” means—

 

“non-equity securities” means—

 

“parastatal bill” means a bill or note as defined in the Bills of Exchange Act, 1964 (Act No. 34 of 1964), drawn, accepted or issued by a parastatal institution;

 

“parastatal institution” means a government-owned company or enterprise,

 

“portfolio” means a portfolio of a collective investment scheme as defined by the Collective Schemes Control Act, 2002;

 

“promissory note” means a promissory note as defined in the Bills of Exchange Act, 1964;

 

“property” means—

 

“property company” means a company that invests primarily in real estate or land;

 

“put option” means a derivative instrument that allows the holder the right to sell a predetermined quantity of an underlying asset at a predetermined price, on or before a predetermined date, or to receive a cash settlement in lieu thereof;

 

“put warrant” means a warrant that gives the holder the right to sell shares to the issuer;

 

“rating” means a credit rating, which is an opinion regarding the creditworthiness of an entity, a credit commitment, a debt or debt-like security or an issuer of such obligation, conducted at the request of the issuer of an instrument, by a rating agency with access to all confidential and other sensitive information supplied by the issuer, including management interaction, and which rating must be publicly available;

 

“ratings agency” means—

 

“secured debenture” means a debenture that is backed or secured by collateral to reduce the risk associated with lending;

 

“securities” means—

 

“strike price” means a predetermined price;

 

“swap agreement” means a binding agreement between two parties to exchange future cash flows according to a prearranged formula which is specified when the agreement is entered into;

 

“transaction sign”, in relation to a financial instrument, means the transaction direction, whether buying or selling, of a financial transaction, and is positive for a financial instrument purchased and negative for any financial instrument sold;

 

“treasury bill” means a bill drawn by the Government of the Republic on the Secretary to the National Treasury, calling on the latter to pay a certain sum to a specified person or his or her order or to bearer, on demand or on a certain specified future date;

 

“underlying asset”, means the asset that underlies and gives value to a security, and in relation to a financial instrument, warrant, option contract or futures contract, means—

 

“warrant” means an instrument that allows the holder the right to purchase a predetermined quantity of shares from the issuer at a pre-determined price on or before a predetermined date.

 

 

 

(4)

 

 

 

 

 

(7)