South African Reserve Bank

From the Office of the Registrar of Banks

Confidential

2008-05-07 G1/08

TO ALL BANKS, CONTROLLING COMPANIES AND BRANCHES OF FOREIGN BANKS

GUIDANCE NOTE 1/2008 ISSUED IN TERMS OF SECTION 6(5) OF THE BANKS ACT, 1990: STATUS OF PREVIOUSLY ISSUED GUIDANCE NOTES

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EXECUTIVE SUMMARY

Banks Act Circular 6/2007 dated 14 November 2007 regarding consultation with banks, controlling companies and branches of foreign banks in respect of directives, circulars and guidance notes refers.

The purpose of this guidance note is to establish the process whereby banks (including branches of foreign banks), controlling companies and auditors of a bank or controlling company will be informed of the status of previously issued guidance notes.

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1. Introduction

This is the first year that this Office issues guidance notes in terms of section 6(5) of the amended Banks Act, 1990 (Act No. 94 of 1990 – the Banks Act). It is, therefore, necessary to explain the process that will be followed in this regard.

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2. Process

In terms of section 6(5) of the Banks Act this Office may from time to time by means of a guidance note furnish banks, controlling companies, eligible institutions, or auditors of banks or controlling companies with information in respect of market practices or market- or industry related developments. Banks and controlling companies are therefore informed that the first guidance note of each year will serve as a notification to all institutions indicating which previously issued guidance notes will remain effective for the ensuing year.

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3. Acknowledgement of receipt

Two additional copies of this guidance note are enclosed for the use of your institution's independent auditors. The attached acknowledgement of receipt, duly completed and signed by both the chief executive officer of the institution and the said auditors, should be returned to this Office at the earliest convenience of the aforementioned signatories.

E M Kruger
Registrar of Banks

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