FSCA Communication 27 of 2020 (FM) Impact of COVID-19 on Financial Markets Act Compliance

FSCA COMMUNICATION 27 OF 2020 (FM) - Supervision IMPACT OF COVID-19 ON COMPLIANCE WITH REQUIREMENTS OF THE FINANCIAL MARKETS ACT, 2012, (ACT NO. 19 OF 2012) (“FMA”) 29 May 2020

1. BACKGROUND
   The Financial Sector Conduct Authority ("the Authority”) acknowledges the impact of COVID-19 and the nationwide lockdown on South Africa in general and the financial services industry specifically. As a result, the Authority hereby communicates arrangements in respect of extending the period to comply with requirements contained in the FMA.
2. EXTENSION OF PERIOD REFERRED TO IN SECTION 90 OF THE FMA
   (ACCOUNTING RECORDS AND AUDIT) READ WITH PARAGRAPH 8 OF BOARD NOTICE 96 OF 2013
   2.1 In terms of section 90 of the FMA read with paragraph 8 of Board Notice 96 of 2013
   (BN 96), a regulated person other than a market infrastructure, a person regulated under the Banks Act, and the South African Reserve Bank, must cause its accounting records and annual financial statements to be audited within the prescribed period. The Authority, by notice in FSCA FMA Notice 1 of 2020, extended the prescribed period referred to in section 90 read with BN 96 by 2 months for market infrastructures with financial year ends 31 December 2019 and 31 January 2020.
   2.2 Due to the continued nationwide lockdown, the Authority has decided to extend the
   period prescribed in section 90 read with BN 96 with a period of 2 months for market infrastructures with financial year ends between 29 February 2020 to 30 April 2020. This extension will therefore apply to all regulated persons that are required to cause the accounting records and annual financial statements referred to in section 90 of the FMA and BN 96 to be audited between 29 February 2020 and 30 April 2020.
   2.3 The extended submission dates provided for are set out in the table below:
   Financial Year-end Date in terms of Board
   Notice 96 of 2013 prescribed under section
   90 of the FMA
   Extended date
   29 February 2020 31 May 2020 31 July 2020
   31 March 2020 30 June 2020 31 August 2020

30 April 2020 31 July 2020 30 September 2020
3. EXTENSION OF PERIOD TO COMPLY WITH VARIOUS TIMEFRAMES
REFERRED TO IN THE JSE LISTING REQUIREMENTS MADE UNDER SECTION 11 OF THE FMA
3.1 The Authority have by notice in FSCA FMA Notice 4 of 2020 extended the periods for
compliance with the specified timeframes contained in the JSE Listing Requirements and the JSE Debt Listing Requirements as stipulated in the table below:
Requirement Abbreviated description
JSE Listing Requirements Paragraph 3.16 Publishing of provisional annual financial statements JSE Listing Requirements Paragraph 3.19 Distribution of notice of annual general meeting and financial statements to holders of securities JSE Listing Requirements Paragraph 19.20 Publishing of annual financial statements on website JSE Debt Listing Requirements Paragraphs 7.4 and 7.5 Submission of audited financial statements to the JSE
3.2 Due to the continued nationwide lockdown, all the timeframes contained in the above
listing requirements will be extended for a period of 2 months in respect of issuers with the following financial year ends: 29 February 2020, 31 March 2020 and 30 April 2020, and will apply irrespective of any extensions that may already have been granted to individual issuers by the JSE.
3.3 The Authority will extend the periods for compliance with the timeframes contained in
the following requirements in the JSE Listing Requirements:
Requirement Abbreviated description
JSE Listing Requirements Paragraph 3.15 Publishing of interim reports
3.4 The timeframe contained in the above requirement will be extended for a period of 1
month in respect of issuers with an interim period end of 31 March 2020 and 30 April 2020.
4. CONTACT
For more information regarding this Communication please contact Michael Kabai via email at Michael.Kabai@fsca.co.za or telephone at (012) 422 2964.