Regulatory Alerts2020-09-23
Financial Conglomerate Designation Criteria
The Prudential Authority of South Africa issued these criteria to implement Level 3 prudential supervision for financial conglomerates under the Financial Sector Regulation Act 9 of 2017. The document establishes quantitative and qualitative thresholds, such as exceeding 50% financial sector assets or conducting material activities across banking, insurance, and securities services, to identify groups requiring enhanced oversight. It further outlines the designation process, including stakeholder notifications and submissions, while mandating continuous reassessment to address evolving risks from interconnectedness, complexity, and unregulated entities.
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