[Section 4 heading substituted by section 290, item 15 in Schedule 4, of Act No. 9 of 2017]
| (1) |
[Section 4(1) deleted by section 290, item 4 in Schedule 4, of Act No. 9 of 2017]] |
| (2) |
[Section 4(2) deleted by section 290, item 4 in Schedule 4, of Act No. 9 of 2017]] |
| (3) |
The Authority may from time to time enter into a written cooperation arrangement, including a memorandum of understanding, with a host supervisor, consolidating supervisor or any other person or institution as the Authority may deem fit, which cooperation arrangement may include— |
| (a) |
a provision that the Authority may accept the methods and approval processes used by a foreign institution or bank at group level: Provided that— |
| (i) |
such methods and approval processes comply with such conditions as may be prescribed; or |
| (ii) |
the Authority may impose additional conditions or requirements; |
| (b) |
a provision that the Authority may conduct an on-site examination or an inspection of a bank or controlling company that is conducting business by means of a branch, subsidiary company, joint venture or related entity within the jurisdiction of the relevant host supervisor or consolidating supervisor, as the case may be; |
| (c) |
a provision that such host supervisor or consolidating supervisor may conduct an on-site examination or an inspection of a branch, subsidiary company, joint venture or related entity of a bank or a controlling company; |
| (d) |
a provision that the Authority may share information relating to the financial condition and performance of branches, subsidiaries, joint ventures or related entities of a bank or controlling company with the relevant host supervisor; |
| (e) |
a provision that the Authority— |
| (i) |
be informed by the relevant host supervisor of adverse assessments of qualitative aspects of the foreign operations of a bank or controlling company; or |
| (ii) |
may provide information to the relevant host supervisor regarding significant problems that are being experienced within a bank, controlling company or banking group; |
| (f) |
such other matters as the Authority may deem relevant. |
[Section 4(3) inserted by section 2 of Act No. 20 of 2007]
| (4) |
The Authority shall implement and maintain a supervisory review process, which process may include— |
| (a) |
an on-site examination, inspection or review of a bank or controlling company and its respective branches, subsidiaries, joint ventures or related entities, within or outside the Republic; |
| (b) |
an off-site review of a bank or controlling company and its respective branches, subsidiaries, joint ventures or related entities, within or outside the Republic; |
| (c) |
a discussion with an executive officer, a chief executive officer or an employee in charge of a risk management function of a bank or controlling company, including a discussion with an executive officer responsible for compliance or internal audit of a bank or controlling company; |
| (d) |
a discussion with a member of the board of directors or a member of a board-appointed committee of a bank or controlling company; |
| (e) |
a review of the work done by an external auditor of a bank or controlling company; |
| (f) |
a review of reports submitted in terms of this Act by a bank, controlling company or banking group. |
[Section 4(4) inserted by section 2 of Act No. 20 of 2007]
| (5) |
In order to ensure the appropriate usage of an external credit assessment issued by an eligible institution, a bank, a controlling company or a branch, the Authority— |
| (a) |
shall assign external credit ratings to risk weights as may be prescribed from time to time; and |
| (b) |
shall publicly disclose which external credit assessment or rating issued by an eligible external credit assessment institution relates to which prescribed risk weight. |
[Section 4(5) inserted by section 2 of Act No. 20 of 2007]
| (6) |
The Authority may implement such international regulatory or supervisory standards and practices as he or she deems appropriate after consultation with banks. |
[Section 4(6) inserted by section 2 of Act No. 20 of 2007]
| (7) |
Notwithstanding section 33 of the South African Reserve Bank Act, 1989 (Act No. 90 of 1989), the Authority— |
| (a) |
may from time to time publicly disclose the following information: |
| (i) |
Criteria relating to the review of the internal capital assessments of banks; |
| (ii) |
factors relating to the setting of capital adequacy ratios by the Authority that are in excess of the minimum capital adequacy ratio as prescribed; |
| (b) |
shall from time to time publicly disclose the following information: |
| (i) |
The process and criteria for recognising eligible institutions; and |
| (ii) |
international regulatory or supervisory standards and practices implemented in terms of subsection (6). |
[Section 4(7) inserted by section 2 of Act No. 20 of 2007]
Medicines and Related Substances Act, 1965
