Africa

Specialty lines insurance in Africa

By Donald Dinnie and Raynold Tlhavani (ZA) on April 28, 2016 Posted in Africa, Insurance

Africa’s largely untapped specialty lines insurance market has significant opportunities for insurers willing to enter the region. As the market develops, more difficult and unusual risks will be written. Regulations which vary by country must be considered. For example, placing insurance with a locally licensed insurer is often a requirement or a percentage of the … Continue Reading

South Africa: ICASA approval required for changes of licensee control

By Edward Odendaal (AU) on February 15, 2016 Posted in Africa, Regulation

Any change of control in an entity which holds an individual electronic communications service licence, individual electronic communications network service licence or radio frequency spectrum licence requires the prior written permission of the Independent Communications Authority of South Africa (ICASA). Radio frequency spectrum licences The Radio Frequency Spectrum Regulations 2015 set out the process which … Continue Reading

WhatsApp faces possible regulation in South Africa

By Edward Odendaal (AU) on January 20, 2016 Posted in Africa, Regulation

The parliamentary telecommunications and postal services portfolio committee will hold a meeting on “Over-The-Top” (OTT) services on 26 January 2016 with a view to possibly regulating them. Popular OTT services include WhatsApp, Google Hangouts and Skype. Some mobile networks feel it is unfair that these services generate profits by riding on the back of infrastructure paid … Continue Reading

New prescribed rate of interest in effect in South Africa

By Maxine Smith on January 20, 2016 Posted in Africa, Banking

The prescribed rate of interest in South Africa has been changed. With effect from 8 January 2016, interest will be charged at 9.75% per annum, up from the previous rate of 9%. Interest on debts will be calculated at the repo rate plus 3.5%. The repo rate is determined from time to time by the … Continue Reading

South Africa: Protection of Investment Act 2015 assented to

By Patrick Bracher (ZA) on January 20, 2016 Posted in Africa, Regulation

The President has assented to the Protection of Investment Act 2015 and the Act has been published for general information. The Act will only come into operation on a date determined by the President by proclamation in the Gazette. The intention of the Act is to achieve a balance of the rights and obligations of … Continue Reading

10 things to know about South African trusts

By Charles Ancer and Emma Forbes (UK) on December 6, 2015 Posted in Africa, General

A trust is an arrangement that allows someone to hold assets (without owning them) for the benefit of the trust beneficiaries. The key element of the trust arrangement is the transfer of ownership and control of the trust assets from the donor or founder to one or more trustees who hold the trust assets not … Continue Reading

South Africa’s Cybercrimes and Cybersecurity Bill introduces Cyberlaundering – with far reaching implications

By Daniel Leslie (CA) on November 28, 2015 Posted in Africa, Regulation

Commendably, South Africa’s new Cybercrimes and Cybersecurity Bill proposes that we take a bold step ahead of contemporary laws across Africa and beyond. Pertinently, clause 19(1) of the Bill proscribes the novel concept of cyberlaundering. Cyberlaundering is the use of a computer to perform or assist an unlawful financial transaction or a relationship involving property … Continue Reading

South African private company stakeholder requirements

By Emma Forbes (UK) and Charles Ancer on November 2, 2015 Posted in Africa, General

A number of jurisdictions have local stakeholder requirements for private companies. South Africa has a hybrid system where there are local requirements (so that some positions can only be held by South African citizens or residents). Directors A South African private company must have at least one director but there is no requirement that this … Continue Reading

New structures to fight cybercrime in South Africa

By Rohan Isaacs (ZA) and Tatum Govender (ZA) on October 28, 2015 Posted in Africa, Regulation

Cybercrime happens at the speed of broadband with criminals able to easily move the tools of their activities from one location to another. Successfully combatting cybercrime therefore requires real time detection and investigation, often by different agencies in different countries. Cybercrime has exploded internationally in the past several years in tandem with the surge of … Continue Reading

The Mozambican Insolvency Law

By Zaida Kathrada (ZA) on October 20, 2015 Posted in Africa, General

Restructuring of companies in financial distress is on the increase globally. In line with this trend, Mozambican Insolvency Law (Decree law No 1/2013) provides greater protection to debtor companies in financial distress and gives them an opportunity to reorganise and restructure while continuing to operate their businesses. The law covers three procedures namely judicial reorganisation … Continue Reading

10 things to know about South African non-profit companies

By Charles Ancer and Emma Forbes (UK) on September 29, 2015 Posted in Africa, General

A non-profit company is a company incorporated for one or more objects, either a public benefit or an object relating to cultural or social activities, or communal or group interests. The name of the non-profit company must end with the expression “NPC” (eg Good Deeds NPC). A non-profit company may be incorporated with or without … Continue Reading

South Africa: Financial institutions will also be obliged to inform clients of cybercrime trends

By Edward Odendaal (AU) on September 23, 2015 Posted in Africa, Regulation

The draft Cybercrimes and Cybersecurity Bill has been published for public comment in South Africa. The draft bill in its current form imposes obligations on “electronic communications service providers” to inform its clients of cybercrime trends and to establish procedures to report such crimes. The definition of an “electronic communications service provider” includes not only … Continue Reading

South Africa: Margin requirements for derivatives – but which OTC’s will be affected?

By Bridget King and Desiree Reddy (ZA) on August 6, 2015 Posted in Africa, Regulation

The International Swaps and Derivatives Association Inc. (ISDA) indicated that South Africa has been in focus over recent months since the margin requirements for non-centrally cleared derivatives transactions were published for comment in June 2015. The aim of the requirements is to outline the future regulation of OTC derivatives in South Africa in line with … Continue Reading

South Africa: New Curatorship regime – thanks to ABIL?

By Bridget King on August 3, 2015 Posted in Africa, Banking

The Banks Amendment Act came into operation on Monday, 29 June 2015. The Amendment Act looks slightly different to the draft bills that were circulated towards the end of 2014. Input from the Standing Committee on Finance has now been incorporated. The Amendment Act provides for the curator of a financially distressed bank to create … Continue Reading

South Africa: Is Bitcoin money?

By Kerri Gevers (ZA) on August 3, 2015 Posted in Africa, Regulation

Cryptocurrencies are unregulated in most jurisdictions and their legal nature has not yet been determined by legislation or case law. Virtual or digital currencies display certain key features of money: They represent value and some (like Bitcoin) can be purchased or exchanged for a real currency equivalent. They can be used to make payment for … Continue Reading

10 things to know about South African private companies

By Charles Ancer and Emma Forbes (UK) on July 29, 2015 Posted in Africa, General

In South Africa a company is recognised as a legal entity separately from its shareholders. Any claims arising from the company’s activities would be brought against the company itself and not against its holding company or shareholders. The statutory liability of a shareholder in a private company is limited to its respective capital contributions to … Continue Reading

South Africa: Can Bitcoin be insured?

By Kerri Gevers (ZA) on July 29, 2015 Posted in Africa, Insurance

As the use of cryptocurrencies like Bitcoin increases, so will the demand for insurance to protect against the risks associated with them. A number of global Bitcoin storage providers offer their customers insurance for storage vault failure. At least one US insurance group offers Bitcoin holdings insurance as an endorsement to existing crime policies. Given … Continue Reading

Italy and the Netherlands join the blog

By Jonathan Herbst (UK) on July 16, 2015 Posted in Africa, Asia, Australia, Canada, Italy, The Netherlands, United Kingdom, United States

Our Regulation tomorrow blog goes from strength to strength, with the addition of Italy and the Netherlands to our existing coverage of Africa, Asia, Australia, Canada, the United Kingdom and the United States.  EU-level updates will also be featured on our Italian, Dutch and UK pages. New blog posts from Italy and the Netherlands include: Italy: … Continue Reading

FSC issues competency standards for collective investment scheme managers in Mauritius

By Louise Campion on July 9, 2015 Posted in Africa, Regulation

In October 2014, the Mauritius Financial Services Commission (FSC) issued competency standards setting out the minimum technical skills and know-how expected from its licensees, which includes entities licenced as collective investment scheme managers (CIS Managers). The standards are part of the FSC’s drive to develop a more robust regulatory framework in Mauritius. The FSC had … Continue Reading

South Africa: Comment on the draft regulations limiting interest and fees under the National Credit Act

By Riccardo Petersen (ZA) on July 1, 2015 Posted in Africa, Regulation

South Africa’s Minister of Trade and Industry published draft regulations on the review of the limitations of fees and interest rates on 25 June 2015. The regulations will increase and decrease interest rates and fees that credit providers can levy on consumers’ mortgage agreements, credit cards, store cards and unsecured credit transactions. The proposed changes … Continue Reading

South Africa: Amendments to Banks Act

By Aslam Moosajee (ZA) on July 1, 2015 Posted in Africa, Banking

With effect from 29 June 2015, the Banks Act has been amended. The amendments to the Banks Act enable the provisions in the Companies Act on arrangements and compromises to apply to banks under curatorship and to expand the basis on which a curator of a bank may dispose of all or part of the … Continue Reading

10 things to know about foreign companies as external companies in South Africa

By Charles Ancer and Emma Forbes (UK) on June 19, 2015 Posted in Africa, General

Foreign companies with business or non-profit activities in South Africa may be required to register with the Companies and Intellectual Properties Commission (CIPC) as an external company. Section 23 of the Companies Act 2008 provides that a foreign company must register within 20 business days of first beginning to “conduct business” in South Africa. A company … Continue Reading

South Africa: Information Regulator to be appointed

By Nerushka Bowan on June 11, 2015 Posted in Africa, Regulation

An agreement has been reached between the justice department and national treasury regarding the salary grading for the South African Information Regulator. The nomination process in the Protection of Personal Information Act, 2013 (POPI) for appointment of the Regulator will soon be initiated. Section 41 requires a multi-party committee of the National Assembly to assist … Continue Reading

The dangers of insurance premium collusion

By Heather Irvine on June 11, 2015 Posted in Africa, Insurance

In early June 2015 the Competition Authority of Kenya fined the Association of Kenya Reinsurers about R91 000 for setting minimum premium rates for insurance companies tendering to provide group life cover to the National Intelligence Service employees. The fixing of minimum premium rates have been going on for years in Kenya. The reinsurers claim these … Continue Reading