| (2) |
A financial conglomerate designated in terms of subsection (1) must include both an eligible financial institution and a holding company of the eligible financial institution, but need not include all the members of the group of companies. |
| (3) |
Without detracting from section 3(3) and (4) of the Promotion of Administrative Justice Act, and despite section 3(5) of that Act, before designating members of a group of companies as a financial conglomerate in terms of subsection (1), the Prudential Authority must— |
| (a) |
give the holding company of the eligible financial institution notice of the proposed designation and a statement of the purpose of and the reasons why the designation is proposed; and |
| (b) |
invite the holding company to make submissions on the matter, and give a reasonable period to do so. |
| (5) |
A designation in terms of subsection (1) must be for the purpose of facilitating the prudential supervision of the eligible financial institution. |
| (6) |
In deciding whether to designate members of a group of companies as a financial conglomerate in terms of subsection (1), the Prudential Authority must take into account all relevant considerations, including at least the following: |
| (a) |
The risk to effective prudential supervision of the eligible financial institution from the structure of the group of companies; |
| (b) |
submissions made by or for the holding company; and |
| (c) |
any other matters that may be prescribed by Regulation. |
| (7) |
The Prudential Authority may designate members of a group of companies as a financial conglomerate in terms of subsection (1) without having complied, or complied fully, with subsection (3) if it is reasonable and justifiable in the circumstances as contemplated in section 3(4)(a) and (b) of the Promotion of Administrative Justice Act and the delay involved in complying, or complying fully, with that subsection in respect of a proposed action is likely to lead to material prejudice to financial customers, prejudicially affect financial stability or defeat the object of the designation. |
(8)
| (a) |
If the Prudential Authority designates members of a group of companies as a financial conglomerate in terms of subsection (1) without having complied, or complied fully, with subsection (3), the holding company of the designated financial conglomerate must be given a written statement of the reasons why that subsection was not complied with. |
| (b) |
The holding company may make submissions to the Prudential Authority within one month after being provided with the statement. |
| (c) |
The Prudential Authority must have regard to the submissions, and notify the holding company, as soon as practicable, whether the Prudential Authority proposes to amend or revoke the designation. |
| (9) |
The Prudential Authority must continually reassess designations made, or any decision not to make a designation, in terms of subsection (1), and consider making a designation or reconsider the terms of any designation made if the Prudential Authority becomes aware of a change in the risk profile of the members of a group of companies or a designated financial conglomerate. |
(10)
| (a) |
Without detracting from section 3(3) and (4) of the Promotion of Administrative Justice Act, and despite section 3(5) of that Act, the Prudential Authority may amend or revoke a designation in terms of subsection (1) by notice to— |
| (i) |
the holding company of a financial conglomerate; and |
| (ii) |
any companies that are not currently designated as part of a financial conglomerate, but which it is proposed to include as part of a currently designated financial conglomerate. |
| (b) |
A notice referred to in paragraph (a) must— |
| (i) |
include a statement of the purpose of and the reasons why the amendment to or revocation of the designation is proposed; and |
| (ii) |
invite the entities referred to in paragraph (a) to make submissions on the matter, and give a reasonable period to do so. |
| (11) |
The Prudential Authority must publish each designation made in terms of this section, and each amendment and revocation of a designation. |
[Section 160 came into effect on 1 March 2019 by section (f) of Notice No. 169 of 2018, GG 41549, dated 29 March 2018]
Statistics Act, 1999
