Draft Joint Standard on Fit and Proper Requirements for Significant Owners of Financial Institutions

Financial Sector Regulation Act No. 9 of 2017 Joint Communication 3 of 2019 Draft Joint Standard on fit and proper requirements for significant owners of financial institutions, second round of public consultation The Prudential Authority (PA) and the Financial Sector Conduct Authority (FSCA) today jointly publish a proposed Joint Standard on fit and proper requirements for significant owners of financial institutions (the Joint Standard) in terms of section 159 read with sections 105, 106 and 107 of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017) (FSRA), for a second round of public consultation. The Joint Standard is being published together with the following set of accompanying documents: (1) a notice inviting submissions in relation to the Joint Standard, stating where, how and by when submissions are to be made; (2) statement explaining the need for, the expected impact of, and the intended operation of the draft Joint Standard; (3) a matrix setting out the comments received during the first round of public consultation and the Authorities’ responses to the comments; (4) draft Joint Standard; (5) a draft FSRA Exemption Notice to be issued in conjunction with the Joint Standard by the FSCA; (6) a draft FSRA Exemption Notice to be issued in conjunction with the Joint Standard by the PA; (7) amended Prudential Standard GOI 4 - Fitness and Propriety of Key Persons and Significant Owners of Insurers; and (8) a comments submission template. The Joint Standard follows the initial Consultation Paper and draft Joint Standard that was published for a first round of public consultation process on 16 November 2018. The extent to which the draft Joint Standard has been amended following the first round of public consultation is set out in the revised Joint Standard being published as well as explained in the documents marked 2 and 3 above. The Joint Standard as well as the accompanying documents above, marked 1 ― 3 are being published in accordance with section 98 of FSRA. Ref.: 15/8/1/5 1 Draft Joint Standard on fit and proper requirements for significant owners of financial institutions, second round of public consultation

It must be noted that the Joint Standard also amends Prudential Standard GOI4 - Fitness and Propriety of Key Persons and Significant Owners of Insurers. Comments on the draft Joint Standard must be submitted on or before 4 September 2019 via email to: PA-Standards@resbank.co.za Requests for further information about this draft Joint Communication may also be sent to the above email address. Jointly issued by the Prudential Authority and the Financial Sector Conduct Authority Date: 2019-07-23 2 Draft Joint Standard on fit and proper requirements for significant owners of financial institutions, second round of public consultation