Regulatory Alerts2011-10-04
D3/2011: Investments and Loans and Advances by Controlling Companies under Section 50 of the Banks Act
The South African Reserve Bank’s Registrar of Banks issues Directive D3/2011 to specify the prescribed percentage, capital base, and consolidation basis for controlling companies’ investments, loans, and advances under Section 50 of the Banks Act. The directive mandates that the aggregate amount of these transactions must not exceed 40 percent of the controlling company’s adjusted share capital and reserve funds, calculated on a consolidated basis using form BA 700. This update replaces Directive 2/2009 by clarifying the capital adjustment rules, thereby ensuring that controlling companies maintain a primary focus on banking-related activities and assets.
Share