Regulatory Alerts2017-05-08
Qualifying Capital Instruments Issued by Subsidiaries of Banks or Controlling Companies
The South African Reserve Bank directs banks, controlling companies, and auditors to obtain prior written approval from host-country authorities and submit detailed motivations before including subsidiary-issued shares or instruments in consolidated qualifying capital. The directive mandates timely notifications for instrument calls and redemptions, requires updated capital plans, and phases out pre-2013 instruments that fail to meet specific regulatory criteria. Furthermore, the Registrar reserves the authority to impose restrictions on included proceeds and will issue responses within six weeks of receiving complete submissions.
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