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Act No. and year
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Short Title
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Extent of repeal or amendment
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Act No. 53 of 1998
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Short-term Insurance Act, 1998
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1. |
The amendment of section 1— |
| (a) |
by the insertion in subsection (1) after the definition of "approved reinsurance policy" of the following definition: |
" 'Authority' means—
| (a) |
in the case of sections 7, 9 to 17, 19 to 20, 22 to 34, 36 to 42, 56 and 59 to 62, the Prudential Authority established in terms of section 32 of the Financial Sector Regulation Act; |
| (b) |
in the case of sections 8, 43 to 55, the Financial Sector Conduct Authority established in terms of section 56 of the Financial Sector Regulation Act; and |
| (c) |
in the case of sections 3, 4, 18, 21, 35, 57, 58 and 63, either the Prudential Authority or the Financial Sector Conduct Authority, subject to consultation and co-ordination requirements set out in the Financial Sector Regulation Act;"; |
| (b) |
by the deletion in subsection (1) of the definition of "Board"; |
| (c) |
by the insertion in subsection (1) after the definition of "company" of the following definition: |
" 'conduct standard' has the same meaning ascribed to it in terms of section 1(1) of the Financial Sector Regulation Act;";
| (d) |
by the insertion in subsection (1) after the definition of "financial reporting standards" of the following definition: |
" 'Financial Sector Regulation Act' means the Financial Sector Regulation Act, 2017;";
| (e) |
by the deletion in subsection (1) of the definition of "Financial Services Board Act"; |
| (f) |
by the insertion in subsection (1) after the definition of "independent intermediary" of the following definition: |
" 'joint standard' has the same meaning ascribed to it in terms of section 1(1) of the Financial Sector Regulation Act;";
| (g) |
by the deletion in subsection (1) of the definition of "prescribe"; |
| (h) |
by the insertion in subsection (1) after the definition of "proportional reinsurance" of the following definition: |
" 'prudential standard' has the same meaning ascribed to it in terms of section 1(1) of the Financial Sector Regulation Act;";
| (i) |
by the insertion in subsection (1) after the definition of "publish" of the following definition: |
" 'Register' means the Financial Sector Information Register referred to in section 256 of the Financial Sector Regulation Act;";
| (j) |
by the deletion in subsection (1) of the definition of "Registrar"; |
| (k) |
by the insertion in subsection (1) after the definition of "transportation policy" of the following definition: |
" 'Tribunal' means the Financial Services Tribunal established in terms of section 219 of the Financial Sector Regulation Act;"; and
| (l) |
by the addition of the following subsection: |
| "(3)
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Unless the context otherwise indicates, words and expressions not defined in subsection (1) have the same meaning ascribed to them in terms of the Financial Sector Regulation Act." |
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| 2. |
The insertion after section 1 of the following sections: |
"Relationship between Act and Financial Sector Regulation Act
1A.
| (1) |
A reference in this Act to the Registrar (but not to the Registrar of Medical Schemes) or a reference to the Board, must be read as a reference to the Authority. |
| (2) |
Except as otherwise provided by this Act or the Financial Sector Regulation Act, the powers and duties of the Authority in terms of this Act are in addition to the powers and duties that it has in terms of the Financial Sector Regulation Act. |
| (3) |
A reference in this Act to the Authority determining or publishing a matter by notice in the Gazette must be read as including a reference to the Authority determining or publishing the matter by notice published in the Register.
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| (4) |
Unless expressly provided otherwise in this Act, or this Act requires a matter to be prescribed by regulation, a reference in this Act to a matter being— |
| (a) |
prescribed must be read as a reference to the matter being prescribed in a prudential standard, a conduct standard or a joint standard; or |
| (b) |
determined must be read as a reference to the Authority determining the matter in writing and registering the determination in the Register. |
| (5) |
A reference in this Act to an onsite visit in terms of a provision of this Act must be read as a reference to a supervisory on-site inspection in terms of the Financial Sector Regulation Act. |
| (6)
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A reference to an inspection in terms of a provision of this Act must be read as a reference to an investigation in terms of the Financial Sector Regulation Act. |
| (7) |
The reference in sections 3(3) and 21(3) to an appeal to the board of appeal established by section 26 of the Financial Services Board Act must be read as a reference to a reconsideration of the decision by the Tribunal in terms of the Financial Sector Regulation Act. |
| (8) |
A reference in this Act to a determined or prescribed fee must be read as a reference to the relevant fee determined in terms of section 237 and Chapter 16 of the Financial Sector Regulation Act. |
Regulatory instruments
| 1B. |
For the purposes of the definition of "regulatory instrument" in section 1(1) of the Financial Sector Regulation Act, any matter prescribed by the Authority in respect of which notice in the Gazette is specifically required by this Act is a regulatory instrument.". |
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3. |
The substitution for section 2 of the following section: |
"Exercise of powers and performance of duties by Authority
2.
| (1) |
The Authority, in fulfilling its responsibility for implementing this Act, must exercise its powers and perform its duties in terms of this Act subject to the Financial Sector Regulation Act. |
| (2) |
The Prudential Authority, in respect of sections 9 to 15, 25 and 36 to 42, must act with the concurrence of the Financial Sector Conduct Authority. |
| (3) |
The Prudential Authority or the Financial Sector Conduct Authority, as the case may be, in respect of sections 18, 21 and 57, must act with the concurrence of the other Authority.". |
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| 4. |
The deletion in section 4 of subsections (2), (4) and (8). |
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| 5. |
The repeal of section 5. |
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| 6. |
The amendment of section 9— |
| (a) |
by the substitution in subsection (3) for paragraph (b) of the following paragraph: |
| "(b)
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unless the applicant demonstrates to the satisfaction of the Authority that— |
| (i) |
it complies and has taken appropriate measures to continue to comply with the governance and risk management framework and financial soundness requirements of this Act; |
| (ii) |
its directors and managing executives meet the fit and proper requirements; and |
| (iii) |
any persons that directly or indirectly control or own that applicant within the meaning of section 25 meet the fit and proper requirements."; and |
| (b) |
by the addition in subsection (3) of the following paragraph: |
| "(cA)
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if registration will be contrary to the interests of prospective policyholders or the public interest.". |
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7. |
The amendment of section 10 by the insertion after paragraph (f) of the following paragraph: |
| "(fA)
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relating to the business arrangements of the short-term insurer, including, but not limited to, the outsourcing arrangements that the short-term insurer may enter into;". |
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| 8. |
The amendment of section 11 by the substitution for subsection (1) of the following subsection: |
| "(1) |
The [Registrar] Authority may, by notice to the short-term insurer, amend, delete, replace or impose additional conditions contemplated in section 10, subject to which the short-term insurer is registered or deemed to be registered— |
| (a) |
upon application of a short-term insurer and having regard, with the necessary changes required by the context, to section 9(3)(b); |
| (aA)
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when in the public interest or the interests of the policyholders or potential policyholders of the short-term insurer; |
| (b) |
when acting in accordance with section 12(2) or (3), or when giving an authorisation in accordance with section 34(2)(a), in relation to a short-term insurer; or |
| (c) |
if a short-term insurer has ceased to enter into certain short-term policies determined by the [Registrar] Authority to an extent which no longer justifies its continued registration in respect of those policies, and the short-term insurer has been allowed at least 30 days in which to make representations in respect of the matter [,by notice to the short-term insurer vary a condition, subject to which the short-term insurer is registered or deemed to be registered, by amending or deleting it, or determine a new condition contemplated in section 10].". |
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| 9. |
The deletion in section 21 of subsection (3). |
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| 10. |
The amendment of section 25— |
| (a) |
by the substitution for subsection (1) of the following subsection: |
| "(1) |
Subject to this section, no person shall, directly or indirectly, and without the prior approval of the [Registrar] Authority, acquire or hold shares or any other financial interest in a short-term insurer or a related party of that short-term insurer which results in that person, directly or indirectly, alone or with a related party, exercising control within the meaning of section 2(2) of the Companies Act over that short-term insurer."; |
| (b) |
by the substitution in subsection (2) for paragraphs (a) and (b) of the following paragraphs: |
| "(a) |
prior to the conversion of shares issued with a nominal value or par value in accordance with the Companies Act, the aggregate nominal value of those shares, by itself or together with the aggregate nominal value of the shares already owned by that person or by that person and related parties, will amount to [25] 15 per cent or more of the total nominal value of all of the issued shares of the short-term insurer concerned; |
| (b) |
after the conversion of shares issued with a nominal value or par value in accordance with the Companies Act, the total number of those shares, by itself or together with the total number of the shares already owned by that person or by that person and related parties, will amount to [25] 15 per cent or more of all the shares in a specific class of shares issued by the short-term insurer concerned."; |
| (c) |
by the substitution in subsection (3) for the words preceding paragraph (a) of the following words: |
| "(3) |
The approval referred to in subsection (1) or (2)—"; |
| (d) |
by the insertion in subsection (3) after paragraph (a) of the following paragraph: |
| "(aA)
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shall not be given if the person does not meet the fit and proper requirements;"; |
| (e) |
by the substitution in subsection (4)(a) for the words preceding subparagraph (i) of the following words: |
"compelling such shareholder to reduce, within a period determined by the Court, that shareholding to a shareholding not exceeding [25] 15 per cent of—"; and
| (f) |
by the deletion of subsections (5) and (6). |
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| 11. |
The amendment of section 55 by the deletion of subsections (2)(f) and (4). |
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| 12. |
The amendment of section 65 by the substitution in subsection (1) for paragraph (a) of the following paragraph: |
| "(a) |
contravenes or fails to comply with a provision of a notice, directive or request referred to in section [4(2), (3) or (4),] 21(1) or (2), 26(1), 34(2)(a) or 35(2);". |
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| 13. |
The repeal of section 66. |
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| 14. |
The amendment of Schedule 1— |
| (a) |
by the substitution in Item 2(b) for subparagraph (i) of the following subparagraph: |
| "(i) |
an over-the-counter instrument, it is capable of being readily closed out and is entered into with a counterparty that complies with criteria [for which the relevant criteria have been] approved by the [Registrar] Authority and any [subject to such] conditions as [he or she] the Authority may determine;" and |
| (b) |
by the substitution in Item 2(b) for subparagraph (iii) of the following subparagraph: |
| "(iii) |
any other instrument, it is regularly traded on a licensed stock exchange in the Republic, or on any other financial market in the Republic approved by the [Registrar subject to such conditions as he or she may determine] Authority, which approval may be subject to conditions determined by the Authority.". |
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| 15. |
The amendment of Schedule 3 by the substitution in Item 6(3) for paragraph (c) of the following paragraph: |
| "(c) |
subject to the conditions [he or she] that the Authority may determine.". |
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| 16. |
The amendment of the arrangement of section— |
| (a) |
by the insertion after item 1 of the following items: |
"1A. Relationship between Act and Financial Sector Regulation Act
1B. Regulatory instruments"; and
| (b) |
by the substitution for item 2 of the following item: |
"2. Exercise of powers and performance of duties by Authority".
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Statistics Act, 1999
