National Environmental Management Act, 1998 (107 of 1998)
R 385
Financial Markets Act, 2012 (Act No. 19 of 2012)Chapter II : Preliminary Provisions6A. Criteria for recognition of external market infrastructures |
| (1) | On application by an interested party, the Authority, with the concurrence of the South African Reserve Bank and the Prudential Authority, may determine that the regulatory framework of a specified foreign country is equivalent (an "equivalent jurisdiction") to the regulatory framework established in terms of financial sector law, if the legislative and regulatory framework established in that foreign country meets the objectives of the financial sector law. |
| (2) | A recognition in terms of section 6A(1) must be published on the Authority’s website and in the Register. |
| (3) | The Authority must maintain a list of all foreign countries recognised under this section. |
| (4) | When assessing the equivalence of the regulatory framework of a foreign country, the Authority, the South African Reserve Bank and the Prudential Authority must take into account — |
| (a) | the nature and intensity of the supervisory authority’s oversight processes, including direct comparison with the regime applied by the Authority, the Prudential Authority and the South African Reserve Bank, as the case may be; |
| (b) | alignment of the foreign country’s regulatory framework with relevant principles developed by international standard setting bodies applicable to market infrastructures; |
| (c) | observed outcomes of the foreign regulatory framework applicable to market infrastructures relative to those in South Africa; and |
| (d) | the need to prevent regulatory arbitrage. |
[Section 6A inserted by section 290, item 8 of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018]
