Regulatory Alerts2018-10-05
Consultation Paper on Fit and Proper Standard for Significant Owners
The Prudential Authority and Financial Sector Conduct Authority have issued a consultation paper proposing a draft Joint Standard to establish consistent fit and proper person requirements for significant owners of eligible South African financial institutions. The proposed standard defines material changes in ownership control as any increase or decrease exceeding five percent in securities or voting rights, mandates integrity and sound financial standing for owners, and amends existing Prudential Standard GOI 4 to align with the Financial Sector Regulation Act. Applying to banks, insurers, market infrastructures, and specific regulated entities while excluding member-based cooperatives, the standard aims to enhance institutional safety and customer protection with a proposed effective date of 1 January 2019.