The financial service industry is prone to periods of instability and the past year has seen a period of extreme instability in the financial service industry around the world. The effects have been far-reaching and expensive for financial services providers in terms of losses suffered. In view of this and a need to bolster consumer confidence, regulators around the world have begun to implement stricter regulations in order to stabilise the industry and spread a much needed degree of assurance. This trend has not escaped South Africa. Read more...

Since January 2004, the provisions of the Financial Sector Charter have guided enterprises in the financial services sector in their efforts to transform the sector from a black economic empowerment perspective. The Charter has been gazetted as a transformation charter in terms of section 12 of the Broad-Based Black Economic Empowerment Act, 2003. Charters gazetted in terms of section 12 have no legal status – publication is for ‘information purposes’ only and confirms that the Minister is satisfied that the charter has been developed by the major stakeholders of a sector and generally advances the objectives of the Act. Read more...

By Joshua Janks and Dana Serchuk

The Securities Services Act, 2004 (“SSA”) has as its object the increase of confidence in the South African financial markets, the promotion of protection of regulated persons and clients, the reduction of systemic risk and the promotion of the international competitiveness of securities services in South Africa. One of the ways the SSA seeks to achieve this object is through the provisions of chapter VIII which relate to market abuse. These provisions, in effect, replaced those of the Insider Trading Act, 1999. Read more...

By Rachel Kelly

Mark Twain observed that “a banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain”. As the world finds its way through the global credit crisis, many businesses in South Africa are faced with challenges in securing finance – some businesses are struggling to get finance at all whereas others are finding that existing credit facilities are being reviewed or renewed on less favourable terms. But what relief does the new Companies Act offer to those businesses struggling to hold onto their umbrellas? Read more...

The current global credit crisis has threatened to undermine the three pillars of Basel II, with potentially serious implications for the South African banking regulator. Many of the world’s major commercial and investment banks have had to write-down huge losses caused by what has been referred to as exposure “toxic assets” on their balance sheets. Many of these banks have since been forced to replenish their balance sheets with funding from governments in order to avoid an economic crisis. This crisis has therefore exposed fundamental fault lines in the regulation of the banking system in countries that had not properly implemented Basel II. Read more...