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2003-01-01

Proposed Amendments Designating Securitisation Schemes and Foreign Branch Banking Conditions

The South African Reserve Bank issued Banks Act Circular 12/2003 to present the third draft of proposed legislative amendments designating traditional and synthetic securitisation schemes as activities outside the statutory definition of banking business. The circular also outlines revised conditions for foreign institutions operating banking branches in South Africa and requests final written comments by 16 September 2003. Recipients must return a signed acknowledgement of receipt from both their chief executive officer and independent auditors to facilitate the proposed amendments' submission for approval to the Standing Committee for the Revision of the Banks Act.

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2003-08-28 TO ALL BANKS, BRANCHES OF FOREIGN BANKS AND MUTUAL BANKS BANKS ACT CIRCULAR 12/2003 PROPOSED AMENDMENTS TO LEGISLATION: DESIGNATION OF AN ACTIVITY NOT FALLING WITHIN THE MEANING OF “THE BUSINESS OF A BANK” – SECURITISATION SCHEMES, INCLUDING TRADITIONAL SECURITISATION SCHEMES AND SYNTHETIC SECURITISATION SCHEMES, AS WELL AS CONDITIONS FOR THE CONDUCTING OF THE BUSINESS OF A BANK BY A FOREIGN INSTITUTION BY MEANS OF A BRANCH IN THE REPUBLIC

  1. INTRODUCTION In Banks Act Circulars 9/2003 and 10/2003, issued on 19 June 2003 and 23 June 2003, respectively, comments were invited on the above-mentioned proposed amendments to legislation. This Office has subsequently incorporated the valuable comments that were received from various parties. It is envisaged that the amended documents will be tabled at a meeting of the Standing Committee for the Revision of the Banks Act, 1990, to be held on 3 October 2003, for approval.
  2. ISSUE OF PROPOSED AMENDMENTS TO LEGISLATION FOR FINAL COMMENT This Office wishes to draw your attention to the issue of the third draft of the proposed amended securitisation notice and the proposed amendments to Government Notice No. 1414, published in Government Gazette No. 21936 dated 28 December 2000, titled “Conditions for the Conducting of the Business of a Bank by a Foreign Institution by means of a Branch in the Republic”, currently available on the South African Reserve Bank’s website, at
  • 2 - http://www.reservebank.co.za, under Bank Supervision, South African banking legislation, Proposed amendments to legislation. Final comments on both of the above-mentioned documents should reach this Office by no later than 16 September 2003.
  1. ACKNOWLEDGEMENT OF RECEIPT Two additional copies of this circular are enclosed for the use of your institution's independent auditors. The attached acknowledgement of receipt, duly completed and signed by both the chief executive officer of the institution and the said auditors, should be returned to this Office at the earliest convenience of the aforementioned signatories. Registrar of Banks The previous circular issued was Banks Act Circular 11/2003 dated 7 August 2003.
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