Regulatory Alerts2019-03-12
Guidance Note 1 of 2019: Registration of Co-operative Financial Institutions
The South African Reserve Bank’s Prudential Authority issued this guidance to outline the mandatory requirements and application procedures for prospective and existing co-operative financial institutions seeking registration under the Co-operative Banks Act of 2007. Applicants must demonstrate solvency, maintain a minimum of 200 members and R100,000 in share capital, establish a common bond, and submit comprehensive documentation including amended constitutions, financial forecasts, and regulatory certificates to both the Prudential Authority and the Companies and Intellectual Property Commission. Existing registered co-operatives are required to complete this registration process by 1 August 2019, as continued deposit-taking operations without formal registration will constitute a criminal offence under the Act.