Regulatory Alerts2020-06-01
Joint Standard on Fitness and Propriety of Significant Owners
The Prudential Authority and Financial Sector Conduct Authority issued a Joint Standard establishing consistent fit and proper requirements for significant owners of South African financial institutions. The regulation mandates that owners maintain necessary integrity, competence, and financial standing, while defining any five percent change in ownership interest as a material shift requiring regulatory assessment. Following industry consultation, the standard shifts direct compliance obligations from financial institutions to the owners themselves and exempts certain member-based entities and credit rating agencies pending further regulatory review.
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