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Financial Sector Regulation Act, 2017 (Act No. 9 of 2017)

Chapter 1 : Interpretation, Object and Administration of Act

Part 1 : Interpretation

3. Financial services

 

(1) In this Act "financial service" means—
(a) any of the following activities conducted in the Republic in relation to a financial product, a foreign financial product, a financial instrument, or a foreign financial instrument:
(i) Offering, promoting, marketing or distributing;
(ii) providing advice, recommendations or guidance;
(iii) operating or managing;
(iv) providing administration services;
(b) dealing or making a market in the Republic in a financial product, a foreign financial product, a financial instrument or a foreign financial instrument;
(e) an intermediary service as defined in section 1(1) of the Financial Advisory and Intermediary Services Act;
(f) a service related to the buying and selling of foreign exchange;
(g) a service related to the provision of credit, including a debt collection service, but excluding the services of—
(i) a debt counsellor registered in terms of section 44 of the National Credit Act who provides the services of a debt counsellor as contemplated in that Act;
(ii) a payment distribution agent as defined in section 1 of the National Credit Act; or
(iii) an alternative dispute resolution agent, as defined in section 1 of the National Credit Act;
(h) a service provided to a financial institution through an outsourcing arrangement;
(i) any other service provided by a financial institution, being a service regulated by a specific financial sector law; and
(j) a service designated by the Regulations for this section as a financial service.

 

(2) A service provided by a market infrastructure is not a financial service unless designated by Regulations in terms of subsection (3).

 

(3) If doing so will further the object of this Act set out in section 7, the Regulations may designate as a financial service—
(a) any service that is not regulated in terms of a specific financial sector law if the service, that is provided in the Republic, relates to—
(i) a financial product, a foreign financial product, a financial instrument or a foreign financial instrument;
(ii) an arrangement that is in substance an arrangement for lending, making a financial investment or managing financial risk, all as contemplated in section 2(2) to (4);  or
(iii) the provision of a benchmark or index; or
(b) a service provided by a market infrastructure.

 

(4) For the purposes of subsection (1)(b) of the definition of "financial service" in subsection (1)—

 

"dealing"

means any of the following, whether done as a principal or as an agent:

(a) In relation to securities or participatory interests in a collective investment scheme, underwriting the securities or interests; and
(b) the buying or selling of the securities or interests for own account or on behalf of another person as a business, a part of a  business or incidental to conducting a business;

 

"making a market"

in a financial instrument takes place when—

(a) a person, through a facility, at a place or otherwise, states the prices at which the person offers to acquire or dispose of financial instruments, whether or not on the person’s own account; and
(b) other persons reasonably expect that they can enter into transactions for those instruments at those prices.

 

(5) Regulations designating a financial service in terms of subsection (3) may specify the financial sector regulator that is the responsible authority for the designated financial service.