EXEMPTION FROM THE JOINT STANDARD ON SIGNIFICANT OWNERS

The Financial Sector Conduct Authority and the Prudential Authority have published the Joint Standard on Significant Owners (“the Joint Standard”), which prescribes certain standards of fitness and propriety for significant owners and those running financial institutions. 

The Joint Standard takes effect on 1 December 2020.  

To read the Joint Standard and related documents, click here.

The Financial Sector Conduct Authority has, however, published an exemption from complying with the Joint Standard in respect of the following entities: 

  • an authorised financial services provider as defined in the Financial Advisory and Intermediary Services Act (excluding an eligible financial institution and a manager as defined in the Collective Investments Schemes Control Act); 
  • a credit rating agency as defined in the Credit Rating Services Act;
  • a friendly society as defined in the Friendly Societies Act;
  • a pension fund organisation as defined in the Pension Funds Act; 
  • a financial product provider or financial services provider that is not subject to a financial sector law other than the Financial Sector Regulation Act; 
  • a significant owner of any person referred to above that is exempted from the requirements of the Joint Standard. 

An eligible financial institution is a financial institution licensed or required to be licensed as a bank in terms of the Banks Act, a financial institution licensed or required to be licensed as a long-term insurer in terms of the Long-term Insurance Act or a short-term insurer in terms of the Short-term Insurance Act, a market infrastructure and a financial institution prescribed in Regulations for the purposes of this definition.

Unless you are an eligible institution as defined, you are merely required to take note of the exemption, and no further action is required.

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