Regulatory Alerts2013-03-01
Matters Related to Qualifying Capital Instruments Issued by Subsidiaries of Banks or Controlling Companies
The South African Reserve Bank directs banks, controlling companies, and auditors to secure prior written approval from host-country authorities and submit motivated arguments confirming that subsidiary-issued shares and instruments meet specific regulatory criteria for inclusion in consolidated qualifying capital. Institutions must provide prior notification upon instrument calls or redemptions, demonstrate adherence to relevant regulatory provisions, and phase out pre-January 2013 non-compliant instruments according to established timelines. The Registrar of Banks reserves the right to impose restrictions on included proceeds and requires signed acknowledgements from chief executives and independent auditors to validate compliance.
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