Acts Online
GT Shield

Higher Education Act, 1997 (Act No. 101 of 1997)

Regulations

Regulations for the Registration of Private Higher Education Institutions, 2016

Chapter 3 : Requirements for Registration

12. Finance

 

(1) In the application contemplated in regulations 3, 4 and 5, an applicant must submit evidence of its financial viability in the form of—
( a) an original or certified copy of its most recent audited annual financial statements audited by an independent auditor registered with the Independent Regulatory Board for Auditors (IRBA);
(b) an original or certified copy of a three-year financial forecast audited by an independent auditor registered with IRBA if the applicant has not previously operated in any form whatsoever; and
(c) proof that it has established a financial surety or guarantee to ensure that it meets its obligations to the number of students it has projected to enrol.

 

(2) The financial surety or guarantee referred to in subregulation 12(1)(c) must be obtained from a financial services institution that is registered in terms of the Banks Act, 1990 (Act No. 94 of 1990) or an institution that is registered in terms of the Short-term Insurance Act, 1998 (Act No. 53 of 1998) and must indicate the following:—
(a) the official letterhead of the bank or insurance company ("the Surety");
(b) the official name of the applicant ("identity of the Principal Debtor");
(c) the students as beneficiaries ("identity of Creditor");
(d) the main responsibility of the Principal Debtor to the Creditor ("the Principal Obligation");
(e) the amount of money covering the reimbursement of students based on projected income from student fees;
(f) the terms and conditions of the agreement;
(g) a signature of a representative of the applicant;
(h) a signature of a representative of the bank or insurance company; and
(i) the signatures of at least two witnesses.

 

(3) The registrar may request any additional relevant financial information.