Regulatory Alerts2004-01-01
Banks Act Circular 7/2004: Preference-share investment schemes
The Registrar of Banks issued Banks Act Circular 7/2004 to clarify that preference-share investment schemes constitute deposit-taking and thus the business of a bank under the Banks Act. The directive mandates that all existing schemes conducted by the banking sector via trusts or subsidiaries must be wound down or liquidated by 31 May 2005. Furthermore, any non-banking entities conducting such activities without being registered as banks are deemed to be acting illegally and will be subject to enforcement action.
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