Statistics Act, 1999
R 385
Financial Sector Regulation Act, 2017 (Act No. 9 of 2017)Chapter 9 : Information Gathering, Supervisory On-Site Inspections and InvestigationsPart 3 : Supervisory on-site inspections132. Powers to conduct supervisory on-site inspections |
| (1) | A financial sector regulator may conduct a supervisory on-site inspection at the business premises of a supervised entity with prior notification to the supervised entity and, if the business premises of a supervised entity is a private residence, with the prior agreement of— |
| (a) | the person apparently in control of the business reasonably believed to be conducted at the private residence; and |
| (b) | the occupant of the private residence or the part of the private residence to be inspected. |
| (2) | The purpose for which a financial sector regulator may conduct a supervisory on-site inspection of a supervised entity is to— |
| (a) | check compliance by the entity with a financial sector law for which the financial sector regulator is the responsible authority, a regulator’s directive issued by the financial sector regulator or an enforceable undertaking accepted by the financial sector regulator; |
| (b) | determine the extent of the risk posed by the entity of contraventions of a financial sector law for which the financial sector regulator is the responsible authority; and |
| (c) | assist the financial sector regulator in supervising the relevant financial institution. |
(3)
| (a) | A financial sector regulator may determine the time and place of a supervisory on-site inspection, provided that the supervisory on-site inspection must be done at a reasonable time within ordinary business hours. |
| (b) | A financial sector regulator must conduct a supervisory on-site inspection with strict regard to— |
| (i) | an affected person’s right to— |
| (aa) | dignity; |
| (bb) | freedom and security; |
| (cc) | privacy; and |
| (dd) | other constitutional rights; and |
| (ii) | decency and good order as the circumstances require, in particular by— |
| (aa) | conducting the supervisory on-site inspection discreetly and with due decorum; |
| (bb) | causing as little disturbance as possible; and |
| (cc) | concluding the supervisory on-site inspection as soon as possible. |
(4)
| (a) | An official of a financial sector regulator, when conducting a supervisory on-site inspection, may do any of the following: |
| (i) | Request any person who has a specified business document that is relevant to the inspection in his, her or its possession or under his, her or its control to produce that document and examine, make extracts from and copy any business document on the premises; |
| (ii) | question any person on the premises to find out information relevant to the inspection; |
| (iii) | give the supervised entity a written directive to produce to the financial sector regulator, at a time and place and in a manner specified in the directive, a specified business document that is relevant to the inspection and is in the possession or under the control of the supervised entity; |
| (iv) | when a business document is produced as required by a directive in terms of subparagraph (iii), examine, make extracts from and copy the document; |
| (v) | if, as a result of the inspection, the official or the financial sector regulator suspects on reasonable grounds that a contravention of a financial sector law has occurred or is likely to occur— |
| (aa) | give a written directive to the supervised entity or the person apparently in control of the premises to ensure that no person removes from the premises, or conceals, destroys or otherwise interferes with, any business document; or |
| (bb) | take possession of, and remove from the premises, a business document for the purpose of preventing another person from removing, concealing, destroying or otherwise interfering with the document. |
| (b) | A directive in terms of paragraph (a)(iii) or (v)(aa) is effective if given to a person apparently in control of the premises. |
| (c) | The financial sector regulator must ensure that the person apparently in control of the premises is given a written receipt for the business documents taken as mentioned in paragraph (a)(v)(bb). |
| (d) | The financial sector regulator must ensure that any business document removed as contemplated in paragraph (a)(v)(bb) is returned to the supervised entity when retention of the business document is no longer necessary to achieve the object of a financial sector law. |
| (e) | The supervised entity from whose premises a document was removed as contemplated in paragraph (a)(v)(bb), or its authorised representative, may, during normal office hours and under the supervision of the financial sector regulator, examine, copy and make extracts from the document. |
