Regulatory Alerts1994-09-14
Designation of Stockbrokers as Agents Authorized to Pool Funds for Money-Lending Transactions
The South African Reserve Bank, via Deputy Registrar of Banks Christo Floris Wiese, designates stockbrokers as authorized agents to pool lenders' funds for money-lending transactions with banks. The notice mandates strict operational conditions, including prior JSE committee approval, standardized written agency agreements, daily account reconciliation, monthly BDA-system statements, and secure deposit handling. Stockbrokers must maintain segregated accounts, provide transparent reporting to lenders, and ensure full compliance with the Banks Act, 1990, and JSE rules.
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