| (6) |
For the purposes of this regulation 36, unless specifically otherwise provided— |
| (a) |
a banking group means a group as defined in section 1(1) of the Act; |
| (b) |
an associate means an associate as defined in the relevant Financial Reporting Standard that relates to accounting for investments in associates, as amended from time to time; |
| (c) |
a related person in respect of a bank or controlling company includes— |
| (i) |
any associate of the relevant bank or controlling company; |
| (ii) |
a significant shareholder of the relevant bank or controlling company; |
| (iii) |
a board member of the relevant bank or controlling company, or a close family member of the board member; |
| (iv) |
a member of senior management of the relevant bank or controlling company, or a close family member of the member of senior management; |
| (v) |
a key member of staff of the relevant bank or controlling company, or a close family member of the key member of staff; |
| (vi) |
a company controlled by any shareholder of the relevant bank or controlling company; |
| (vii) |
any majority owned or controlled entity; |
| (viii) |
any significant minority owned or controlled entity; |
| (ix) |
any other person or entity specified in writing by the Registrar. |
| (d) |
a financial entity includes— |
| (i) |
any entity that conducts— |
| (A) |
the business of a bank; |
| (B) |
ancillary banking services or services directly related to the business of a bank, such as the management of data processing services or property; |
| (C) |
any securities services as envisaged in the Financial Markets Act, 2012, including any trading related business in instruments such as money-market instruments, foreign exchange, financial futures and options, exchange and interest rate instruments or transferable securities; |
[Regulation 36(6)(d)(i)(C) substituted by regulation 18(a) of Notice No. 297, GG 40002, dated 20 May 2016]
| (D) |
lending business such as consumer credit, mortgage credit or factoring; |
| (E) |
the business of financial leasing; |
| (F) |
money transmission services; |
| (G) |
business relating to the issue or administration of means of payment such as credit cards or travelers cheques; |
| (H) |
business relating to the issue of guarantees or commitments; |
| (I) |
business relating to the provision of advice in respect of matters such as mergers and acquisitions or the structuring of capital or business strategy; |
| (j) |
the business of money broking; |
| (K) |
the business of portfolio management and/or investment advice; or |
| (L) |
the business of safekeeping and administration of securities; |
| (ii) |
any other financial entity specified in writing by the Registrar, |
but does not include any insurer or entity that conducts insurance business;
| (e) |
a financial activity or service includes any regulated or unregulated activity or service conducted by a financial entity within a group of entities that includes a bank but does not include any insurance activity or business conducted by an insurer; |
| (f) |
an insurer means an entity that conducts insurance business and includes any entity registered as an insurer in terms of the Short-term Insurance Act, 1998, or Long-term Insurance Act, 1998; |
| (g) |
a significant minority investment or interest means any ownership interest between 20 per cent and 50 per cent of the voting rights or capital held by the reporting bank or controlling company in the relevant entity, |
| (h) |
an entity that potentially constitutes a material or significant risk to the relevant banking group may include— |
| (i) |
any relevant entity subject to the regulation or supervision of any other supervisor and which entity is subject to separate prudential requirements; |
| (ii) |
any relevant entity with assets in excess of one per cent of the consolidated assets of the relevant reporting bank or controlling company, which assets shall in all cases exclude any intragroup balances and which entity shall not be a dormant entity; |
| (iii) |
any relevant entity with net income after tax in excess of five per cent of the consolidated net income after tax amount of the relevant reporting bank or controlling company; |
| (iv) |
any relevant entity with intragroup exposure or other financial relationship with the relevant banking group in excess of two per cent of the consolidated amount of group exposure, |
provided that in no case shall the aggregate amount of net income after tax or assets of all relevant entities deemed non significant respectively exceed twenty per cent of the said consolidated net income after tax or ten per cent of the said consolidated assets of the relevant reporting bank or controlling company;
| (i) |
a commercial entity includes any entity primarily involved in the production of goods or delivery or non-financial services. |
Contingency Fees Act, 1997
