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

Chapter 7 : Regulatory Instruments

Part 2 : Standards

105. Prudential standards

 

(1) The Prudential Authority may make prudential standards for, or in respect of—
(b) financial institutions that are market infrastructures; and
(c) key persons of such financial institutions.

 

(2) A prudential standard must be aimed at one or more of the following:
(a) Ensuring the safety and soundness of those financial institutions;
(b) reducing the risk that those financial institutions and key persons engage in conduct that amounts to, or contributes to, financial crime; and
(c) assisting in maintaining financial stability.

 

(3) Without limiting subsection (1), a prudential standard may be made on any of the following matters:
(a) Financial soundness requirements, including requirements in relation to capital adequacy, minimum liquidity and minimum asset quality;
(b) matters on which a regulatory instrument may be made by the Prudential Authority in terms of this Act or a specific financial sector law;

[Section 105(3)(b) substituted by section 46 of the Financial Sector Laws Amendment Act, 2021 (Act No. 23 of 2021), Notice No. 789, GG45825, dated 28 January 2022- effective 1 June 2023 per (b)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]

(c) matters that may in terms of any other provision of this Act be regulated by prudential standards, including matters as contemplated in section 30; and
(d) any other matter that is appropriate and necessary for achieving any of the aims set out in subsection (2).