Regulatory Alerts1991-01-31
Designation of an Activity Not Falling Within the Meaning of the Business of a Deposit-taking Institution (Unit Trust Schemes)
The South African Minister of Finance and the Registrar of Deposit-taking Institutions issued notices under the Deposit-taking Institutions Act, 1990 to formally designate specific financial activities as exempt from the statutory definition of deposit-taking business. These notices explicitly exclude the management of unit trust schemes, participation bond schemes, and internal deposit-taking arrangements among mining house groups from regulatory licensing requirements, provided they adhere to specified investment periods, reinvestment conditions, and annual reporting obligations. The exemptions take effect concurrently with the Act's commencement on 1 February 1991, thereby clarifying the regulatory perimeter and permitting these established financial structures to operate without breaching deposit-taking legislation.