Dear subscribers,

Please note that the last issue of CompliNEWS for this year will be published on Thursday, 14 December 2023.

The first CompliNEWS of the new year will be issued on Thursday, 11 January 2024.

Breaking news will still be posted on the website during this period.

We wish ...

South Africa is set to strengthen its financial market regulations following a high-profile case where a leading bank admitted to participating in the manipulation of the rand. The National Treasury announced plans on Friday to introduce legislation next year aimed at expanding oversight of over-the-counter derivatives and foreign currency trading ...

Under the provisions of section 49(4)(a) of the Financial Markets Act 19 of 2012 ('FMA'), an application has been submitted for the amendment of specific terms and conditions of the clearing house licence granted to Strate Proprietary Limited (Strate).

The current licence condition specifies Strate's main office ...

The South African National Treasury has announced its intention to introduce draft legislation aimed at tackling the issue of state capture and enhancing governance in key state entities. This move, expected to materialise as early as January, is a direct response to the findings and recommendations of the Zondo Commission ...

The Financial Sector Conduct Authority (FSCA) has taken a significant step towards enhancing the regulatory framework for Collective Investment Schemes (CIS) in South Africa. In a recent announcement, the FSCA released a series of documents for public consultation, marking a pivotal moment in the country's financial sector reform.

Key ...

Compli-Serve

The Financial Sector Conduct Authority (FSCA) plans to implement the standard under section 106(1)(a) and (2)(b) of the FSR Act. This section authorises the FSCA to establish conduct standards essential for fulfilling the objectives of the FSR Act and related financial sector laws, including the Collective ...

Legalbrief Today

In an unprecedented move, business organisations have written to the presiding officers of the NCOP as well as Deputy President Paul Mashatile – who is the leader of government business – with an urgent appeal to stop the National Health Insurance (NHI) Bill from being passed by Parliament ...

Legalbrief Environmental

Standard Bank has seven directors that have potential conflicts of interest regarding their roles at fossil fuel companies and the bank’s commitment to managing climate risk issues, says Just Share in a new study that spotlights key roles that the South African financial services industry plays in the ...

Businesses are tasked with a significant challenge: integrating decarbonisation into their financial strategies and decision-making processes, according to a report by EY. They face hurdles such as inconsistent government policies. A systematic, evolving framework is essential for managing change and providing effective, large-scale transition support. Incorporating environmental considerations and ensuring ...

The Financial Conduct Authority in the UK has initiated an intriguing development by forming a working group specifically for financial advisers. This group is designed to assist these professionals in understanding and implementing the new ESG (Environmental, Social and Governance) regulations effectively, reports FT Adviser.

Full FT Adviser report

South Africa has been listed among the top ten nations globally for high levels of criminal activity, as per the recent Global Organised Crime Index published by the Global Initiative Against Transnational Organised Crime. In this assessment, South Africa holds the seventh position out of 193 countries, notes The Citizen ...

Money laundering, the process of making the proceeds of criminal activities appear legitimate, and terrorist financing, the funding of terrorist activities, are significant global concerns. The Financial Action Task Force (FATF), a key body in setting standards for combating these issues, has updated its recommendations in November 2023, emphasising the ...

The Financial Intelligence Centre (FIC) has released a draft risk assessment report for company service providers, inviting public consultation. This report focuses on the money laundering and terrorist financing risks prevalent in this sector, particularly since its inclusion in item 2 of Schedule 1 of the Financial Intelligence Centre Act ...

Gauteng High Court

Parties: Zero Azania v Caterpillar Financial Services

Date of Judgment: 21 November 2023

Keywords: Civil Procedure, Execution Pending Appeal, Jurisdiction, Court Discretion, Superior Courts Act

Case Summary

Zero Azania (Pty) Ltd, referred to as Azania, failed to comply with instalment payments for six construction vehicles purchased from ...

Gauteng High Court

In a significant ruling, the Gauteng High Court has ordered Compass Insurance Company Limited to pay Samchem Corporation (Pty) Ltd a sum of R16 311 032,92, along with interest and costs, in a case revolving around indemnity insurance and alleged pre-contractual misrepresentation.

Background of the Case ...

Financial Services Tribunal ('FST' or 'the Tribunal')

The following matter was handed down by the Financial Services Tribunal on 19 November 2023:

• Zinhle Kelly Hadebe (Applicant) and Assupol Life Limited (Respondent) – (case number: FSP50/2023)

Fast facts

Reconsideration application – Debarment of financial services representative – Procedural and substantive ...

The Financial Sector Conduct Authority (FSCA) is issuing a caution to the public about engaging in any financial services activities with a group of individuals who are falsely representing themselves as part of the MitonOptimal (Pty) Ltd brand. These impostors are actively defrauding unsuspecting individuals on the social media platform ...

The medical schemes regulator says it has submitted its long-awaited report on cheap, pared-down medical scheme options to Health Minister Joe Phaahla, notes Business Day. The Council for Medical Schemes (CMS) has since 2015 overseen the development of a low-cost benefit option (LCBO) framework that will allow schemes to offer ...

The Financial Intelligence Centre (FIC) has issued a critical reminder to certain accountable institutions regarding compliance with Directive 7, under the Financial Intelligence Centre Act 38 of 2001 ('FiC Act'). This directive, released on 31 March 2023, mandates specific institutions listed in Schedule 1 of the FIC Act – including ...

Legalbrief Today

‘The settlement agreement reached by Standard Chartered Bank and the Competition Commission is an important mantelpiece in dealing with the currency manipulation case.’ However, Dr Tinashe Kondo and Dr Precious Ndlovu, from the University of the Western Cape’s law department, note only once the settlement agreement has ...

Key figures in the South African asset management industry discussed significant challenges and strategies during an Inn8 Invest webinar. Cheree Dyers, CEO of Prescient Investment Management, anticipates that the offshore investment limit governed by Regulation 28 of the Pension Funds Act might increase from 45% to 100%. CityWire reports that ...

Legalbrief Today

Khandani Msibi, the CEO of the investment arm of the National Union of Metalworkers of SA (Numsa), has embarked on a new strategy to force the end of the curatorship of 3Sixty Life, the underwriter owned by Numsa Investment Company's Doves Group Holdings (DGH), reports Fin24. Msibi ...

The UK's Financial Conduct Authority (FCA) has recently imposed a ban on Nigel Lewis and Susan Jones, previously associated with West Wales Financial Services Limited (WWFS, currently in liquidation), from providing any pension transfer or opt-out advice. Additionally, Mr Lewis is prohibited from holding senior management roles in any ...

On Wednesday, the Financial Conduct Authority (FCA) in the UK announced significant proposals aimed at enhancing the accountability of personal investment firms, often known as investment advisers. These proposals mandate that these firms set aside sufficient capital to cover compensation costs for any harm caused to consumers, effectively ensuring that ...

At the recent City & Financial's Culture and Conduct Forum, Emily Shepperd, the Chief Operating Officer and Executive Director of Authorisations at the UK's FCA, delivered a compelling speech on the pivotal role of culture and conduct in enhancing organisational power. Her insights are particularly relevant for South ...

Dante de Gori, CEO of the Financial Planning Standards Board (FPSB), highlighted the significant impact of technology and AI on the financial planning profession during the 2023 Financial Planning Institute of Southern Africa’s (FPI) Convention. Despite technological advancements, he emphasised that human financial planners will remain essential.

Key points from ...

The National Treasury has announced the introduction of new legislation aimed at strengthening the regulation of South Africa's financial markets, with a particular focus on the over-the-counter (OTC) markets. This move is in response to prevent unfair market practices, as highlighted during a parliamentary hearing into the Competition Commission ...

By Lee Rossini

In the personal and professional development space, psychologist and academic Carol Dweck has written extensively about the power of mindset in her groundbreaking book Mindset: The New Psychology of Success. The book delves into the transformative idea that our beliefs about our abilities fundamentally shape our lives ...

Public Service and Administration Minister Noxolo Kiviet has announced a new initiative by the South African government to offer incentives to whistle-blowers who report corruption, reports The Mercury. This announcement, made during a session of answering oral questions in the National Assembly, highlights the government's increasing efforts in combating ...

Compli-Serve

Current State of EU Regulation and Crypto Adoption

The EU is set to introduce the MiCA (Markets in Crypto Assets) framework in 2024, aiming to integrate crypto more closely with traditional finance.

MiCA will standardise regulations across the EU, covering aspects like marketing, user verification, and stablecoins, simplifying the ...

Changpeng Zhao, founder of Binance, the world’s largest cryptocurrency exchange, agreed to resign from the company and plead guilty to money laundering this week. A report in The Guardian notes that as part of a guilty plea, Zhao agreed to pay a $50m fine and would be barred from any ...

On 19 October 2022, the Financial Services Conduct Authority (FSCA) issued a significant Declaration under the Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS Act), categorising crypto assets as 'financial products'. This Declaration characterises a 'crypto asset' as a digitally represented value, not issued by a central bank ...

Compli-Serve

The Spanish Data Protection Authority (DPA) has levied a fine of EUR 72 000 against Eurocollege Oxford English Institute S.L. for a data protection violation. The issue arose when an individual, who had signed a training contract with Centro De Estudios Aeronauticos, S.L. (CEAE), an affiliate of ...

The Southern African Venture Capital and Private Equity Association (Savca) has announced the appointment of Vuyo Ntoi as its new chairperson, effective from 15 November 2023. This decision follows a majority vote by the board of directors, reports CityWire. Ntoi succeeds Ata Capital CEO Lelo Rantloane, who completed his three-year ...