The conditions referred to in paragraph 2, applicable to a group between the members of which there exists a common bond (hereinafter referred to as "a group"), are the following, namely-
| a) |
None of the activities of a group may fall within the objectives of a pension fund organisation as set out in paragraph (a) or (b) of the definition of "pension fund organisation" in section one of the Pension Funds Act, 1956; |
| b) |
the rules of a group shall not entitle any member at any time, albeit subject to any such notice as may be prescribed in the rules of the group, to withdraw the full amount of his contributions; |
| c) |
a group as mentioned in subparagraph (b) of paragraph 1 shall either be a member of or be affiliated to the National Stokvels Association of South Africa ('"ASASA'') or any such similar representative self-regulatory body approved by the Registrar of Banks in writing; |
| d) |
a group as mentioned in subparagraph (d) of paragraph 1 shall either be a member of or be affiliated to the Savings and Credit Co-operative League of South Africa ("SACCOL") or any such similar representative self-regulatory body approved by the Registrar in writing; |
| e) |
the benefits of the members of the group shall not be provided exclusively by way of loans that, in terms of the rules of a group, must be repaid; |
| f) |
a group shall keep, in one of the official languages of the Republic of South Africa, such accounting records as are necessary to fairly reflect the state of affairs and business of a group and to explain the transactions and financial position of such group; |
| g) |
a group shall fix a date on which, in each year, its financial year will end, and such financial year shall be a group's annual accounting period; |
| h) |
a group shall within 120 days after the end of each financial year cause annual financial statements, pertaining to its affairs and business in respect of that financial year, to be made out in one of the official languages of the Republic of South Africa; |
| i) |
a group must fit into one of the following categories: |
| i) |
A group that does not at any time hold subscriptions from members amounting in the aggregate to more than R3 million; or |
| ii) |
a group that at any time holds subscriptions from members amounting in the aggregate to more than R3 million but not amounting in the aggregate to more than R30 million or; |
| j) |
the financial statements of a group that fits into the category mentioned in item (ii) of subparagraph (i) shall be presented to a person duly registered as an accountant and auditor, in terms of the Auditing Professions Act, 2005 (Act No. 26 of 2005), for purposes of the drawing up and presentation of a report; |
| k) |
in the event of the accountant and auditor being unable to make such report or to make it without qualification, he shall include in his report a statement to that effect and set forth the facts or circumstances that prevent him from so making his report or from making it without qualification; |
| l) |
copies of such audit report shall within 60 days after completion thereof in respect of a group fitting into the category mentioned in item (ii) of subparagraph (i) be presented- |
| i) |
in the case of a group mentioned in subparagraph (a) of paragraph 1, to the members of such group and to their employer; or |
| ii) |
in the case of a group mentioned in subparagraph (b) of paragraph 1, to the members of such group and the National Stokvels Association of South Africa ("NASASA") or any such similar representative self-regulatory body approved by the Registrar in writing; or |
| iii) |
in the case of a group mentioned in sub-paragraph (c) of paragraph 1, to the members of such group; or |
| iv) |
in the case of a group mentioned in subparagraph (d) of paragraph 1, to the members of such group and to the Savings and Credit Co-operative League of body approved by the Registrar in writing. |
Medicines and Related Substances Act, 1965
