Banking & Finance Law

Draft NCA Regulations on Affordability Assessments published

The Department of Trade and Industry has published draft regulations on, "Affordability Assessment for the Amendment of
Regulations for matters relating to the functions of the National Consumer Tribunal and Rules for the Conduct of
matters before the National Consumer Tribunal".

Is the Financial Services Industry pulling wool over consumers' eyes?

The Financial Services industry is in a state of flux. The Financial Services Laws General Amendment Bill (FSLGAB) was tabled in parliament on 25 September 2012. The aim of the Bill is to ensure that ‘South Africa has a sounder and better regulated financial services industry’ (see the Memorandum on the Objects of the Bill).

Financial Services Laws General Amendment Bill tabled in Parliament

According to the South African Government News Agency (SANews) the Financial Services Laws General Amendment Bill was tabled in Parliament last week.

In short, 'the Bill, which was released for public comment in March, addresses urgent issues in eleven financial sector laws, including legislative gaps that were highlighted after the 2008 financial crisis and to align these laws with the new Companies Act, 2008, and other legislation.'

Constitutional Court considers whether unregistered credit providers can reclaim loans

The Constitutional Court has been asked to consider the constitutionality of s 89(5)(c)(i) and s 89(5)(c)(ii) which provides that an unregistered credit provider looses the right to collect on loans. This right either gets 'cancelled' or is forfeited to the state.

It appears likely that if the court finds that the section is unconstitutional, the order will be suspended to allow parliament time to revisit the section.

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