Status of Previously Issued Guidance Notes (G1/2020)

Ref.: 15/8/2 G1/2020 To: All banks, branches of foreign institutions, controlling companies, eligible institutions and auditors of banks or controlling companies Guidance note 1/2020 issued in terms of section 6(5) of the Banks Act, 1990: Status of previously issued guidance notes Executive Summary Banks Act Guidance note 1/2008 dated 7 May 2008 established the process whereby banks (including branches of foreign institutions), controlling companies and auditors of a bank or controlling company will be informed of the status of previously issued guidance notes. In order to ensure that banks (including branches of foreign institutions), controlling companies, and auditors of a bank or controlling company are in no doubt as to which previously issued guidance notes remain effective, the first guidance note of a particular year will serve as a notification to all institutions indicating which previously issued guidance notes remain effective for the ensuing year.

1. Introduction 1.1 All previously issued guidance notes are deemed to be withdrawn/terminated/replaced except if such a guidance note is to remain effective and is then accordingly confirmed in Guidance note 1 of that year. The guidance notes that remain effective will retain their original numbers and dates.
2. Effective Guidance Notes The guidance notes listed below remain effective. Accordingly, banks, controlling companies, eligible institutions and auditors of a bank or controlling company are hereby requested to retain copies of these guidance notes. Guidance Note Brief Details 2.1 Banks Act Guidance note 1/2008 Status of previously issued guidance notes 2.2 Banks Act Guidance note 2/2008 Position statement on personal account trading 2.3 Banks Act Guidance note 5/2008 Electronic communication with this Office

2 2.4 Banks Act Guidance note 7/2008 Development programme for directors of banks 2.5 Banks Act Guidance note 8/2008 FATF call for enhanced scrutiny of transactions with certain jurisdictions and UN sanctions in relation to proliferation of weapons of mass destruction 2.6 Banks Act Guidance note 9/2008 Stress testing 2.7 Banks Act Guidance note 3/2010 Performing market risk hypothetical backtesting by internal models approach banks 2.8 Banks Act Guidance note 3/2011 Covered bonds 2.9 Banks Act Guidance note 2/2013 Operational risk practices 2.10 Banks Act Guidance note 4/2013 Operational risk practices – completion and submission of the BA 410 return 2.11 Banks Act Guidance note 5/2013 Foreign Exchange Settlement Risk 2.12 Banks Act Guidance note 3/2014 Effective risk data aggregation and risk reporting 2.13 Banks Act Guidance note 4/2014 Application process in respect of the proposed adoption of the internal ratings￾based approach for the measurement of banks’ credit risk exposure in respect of positions held in the banking book 2.14 Banks Act Guidance note 5/2014 Outsourcing of functions within banks 2.15 Banks Act Guidance note 6/2014 Application process for approval to adopt the standardised approach or alternative standardised approach for measuring banks’ operational risk exposure 2.16 Banks Act Guidance note 3/2015 Application process to adopt the advanced measurement approach for measuring banks' operational risk exposure 2.17 Banks Act Guidance note 4/2015 This guidance note outlines the expectations of the Bank Supervision Department (BSD) of the South African Reserve Bank (the Bank) with respect to the internal capital adequacy assessment process (ICAAP) of banks, controlling companies, and branches of foreign institutions – hereinafter referred to as ‘banks’.