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Principles of Financial Law

Principles of Financial Law is the essential guide for lawyers and other professionals involved with financial institutions and financial service providers.

Publication Language: English
Print
R710.51
Quantity
In Stock
Published:
ISBN/ISSN: 9780409018370

Product details

Principles of Financial Law is the essential guide for lawyers and other professionals involved with financial institutions and financial service providers.

This publication explores the impact of the Constitution and the Bill of Rights on financial institutions, authorised financial services providers, the Financial Services Charter and BEE.

It also consolidates the legal principles applicable to all financial institutions and authorised financial services providers.

This publication assists financial advisors, consumers of financial services, and business associates of financial advisors to gain a proper understanding of the legal environment affecting the new profession.

Featured authors

Table of contents

Constitutional matters

Introduction

The Constitution of the Republic of South Africa

Separation of powers

The rule of law

The Bill of Rights

Human dignity

Equality and discrimination

Black Economic Empowerment

The Financial Sector Charter

Employment equity

Promotion of equality and prevention of unfair discrimination

Access to information

Administrative justice

Competition

Privacy and confidential information

Protected disclosures

Conclusion

The consumer

Introduction

Regulatory developments

Enforcement of consumer rights

Financial Advisory and Intermediary Services Act

National Credit Act

The Consumer Affairs (Unfair Business Practices) Act

Consumer law review

Competition law

Access to information

Class actions

Equality and discrimination

United Nations guidelines for consumer protection

Conclusion

The financial advisor

Introduction

Financial services providers

Financial services providers and product providers

Financial services providers and clients

Remuneration of financial advisors

The FAIS Act

Codes of conduct

Ombud for Financial Services Providers

Alternative enforcement mechanisms

The common law

Conclusion

The product providers

Introduction

Long-term insurers

The regulatory regime

The Long-term Insurance Act

The Life Offices Association

Collective investment schemes

Investing in a unit trust

Costs

CISCA

Registration requirements

Duties of collective investment scheme manager

Types of collective investment schemes

Trustee or custodian

Duties of trustee or custodian

Status of assets

Liability of trustee or custodian in respect of loss of assets

Retirement funds

Tax benefits of retirement funds

Legal protection of retirement funds

Stokvels and friendly societies

Friendly societies

Objects for which friendly societies may be established

Role of stokvels and friendly societies in the financial sector

Asset management

The regulatory environment

Short-term insurers

Registration requirements

The contentious issues

Insurable interest

Material non-disclosure

Policyholder protection rules

Medical schemes

Registration requirements

Rules of a medical scheme

Banks

Services typically offered by banks

Corporate governance provisions in the Act

Corporate governance process in the regulations

Types of banks

Banks in the economy

Role in the money supply

Size of global banking industry

Bank crises

The Exchanges

The JSE

Legal nature of the JSE

Regulation of the JSE

The Security Services Act

JSE rules

JSE listing requirements

Investing on the JSE

The Bond Exchange of South Africa

What are bonds?

The Security Services Act

Objects and application

Prohibited activities

Structure

Changes and new principles

Government retail bonds

Introduction

Affordability and accessibility

Interest rates and payment

Redemption

Safety

Taxation

Buying

Eligibility

Transferability

Proof of ownership

Statement of account

Death of a registered holder

Sales so far

National Credit Act

Introduction

Over-indebtedness

Reckless credit

Prevention of reckless credit

Effect of reckless agreement

Pre-agreement requirements

Effect on credit providers

Consumer Protection Bill

Background

Purpose and policy of proposed Act

Application of proposed Act

Structure of proposed Act

Implications for business

Contentious issues

Development institutions

Industrial Development Corporation (IDC)

National Empowerment Fund (NEF)

Advisory Services

Market Making Division

Capital Markets Fund

The Public Investment Corporation (PIC)

Clients

Assets under management

Development Bank of Southern Africa (DBSA)

Advisory services

Agency services

Directors and management

The management of long-term insurers

Board of directors

King Code on Corporate Governance

Legal status of the King Code on Corporate Governance

Procedures for appointment of the board

Board committees

Company secretary

Auditor

Statutory actuary

The management of short-term insurers

The management of medical schemes

The management of collective investment schemes

Duties of trustee or custodian

Corporate governance

The management of retirement funds

Board of fund

Exemptions

Object of the board

Duties of the board

Liability of trustees

Principal officer

Auditor

Valuator

Administrator

Other appointments

Pension Funds Adjudicator

PFA determinations

The Holloway case

The management of stokvels and friendly societies

Person managing the affairs of a society

Principal executive officer

Auditor

The management of asset managers

The management of banks

Retail product liability

Corporate law reform

Retirement fund reform

Competition issues

The Competition Act

Nedcor's hostile bid for Standard Bank

Competition Tribunal findings

Anti-competitive behaviour

Conclusion

The regulators

Introduction

Corporate Governance

Directors fiduciary duties

Risk management

Administrative justice

The Financial Services Board (the FSB)

The South African Reserve Bank (the SARB)

The National Treasury

The South African Revenue Service (SARS)

The Competition Commission

The Life Offices Association (the LOA)

The Association of Collective Investment Schemes (the ACI)

The Financial Planning Institute (the FPI)

The Institute of Retirement Funds (the IRF)

The Financial Intelligence Centre (the FIC)

The National Credit Regulator (the NCR)

Conclusion

Alternative dispute resolution

Introduction

The FSOS Act

Financial Services Ombud Schemes Council

Application for recognition in terms of the FSOS Act

Statutory Ombud

Complaints dealt with by the Statutory Ombud

Jurisdiction

Resolution of complaints

Prescription

Effect of a determination

Costs

The FAIS Ombud

Complaints dealt with by the FAIS Ombud

Jurisdiction

The determination of a complaint

Prescription

Effect of a determination made by the FAIS Ombud

Cost orders

Appeal against a determination by the FAIS Ombud

The Ombudsman for Long-term Insurance

Complaints dealt with by the Ombudsman

Jurisdiction

The resolution of complaints

Prescription

The effect of a determination made by the Ombudsman

Costs

Appeals against a determination made by the Ombudsman

Ombudsman for Short-term Insurance

Complaints dealt with by the Ombudsman

Jurisdiction

The determination of complaints

Prescription

Effect of a determination by the Ombudsman for Short-term Insurance

Costs

Ombudsman for Banking Services (OBS)

Complaints dealt with by the OBS

Jurisdiction

The determination of complaints

Prescription

Effect of a determination

Costs

Review

The Pension Funds Adjudicator

Complaints dealt with by the Adjudicator

Jurisdiction

The determination of complaints

Prescription

Effect of a determination by the Adjudicator

Costs

Appeal

The Council for Medical Schemes

Complaints in terms of the Medical Schemes Act

The resolution of complaints by the Registrar

Appeal to the Council

Appeal Board

Conclusion

Electronic communications and transactions

Introduction

Cost savings and operating efficiencies

Significantly increased speed

Instant interaction

Marketing benefit

ECTA

Legal recognition of data messages

Electronic offers and acceptances

Electronic offer

Electronic acceptance

Legal formalities

Reduced to writing

Electronic signatures

Electronic notarisation, acknowledgement and verification

Electronic delivery of documents

Electronic record keeping

Consumer protection

Interception of communications

Protection of personal data

Conclusion

Financial crime

Introduction

The Companies Act

The Prevention of Organised Crime Act

The Financial Intelligence Centre Act

The Income Tax Act

The Financial Advisory and Intermediary Services Act

The Security Services Act

The Prevention and Combating of Corrupt Activities Act

Money laundering

White collar crime

Cyber crime

Law enforcement

Commercial courts

Conclusion