This is the version of this Act as it was from 23 November 2001 to 31 October 2008. Read the latest available version.
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Financial Institutions (Protection of Funds) Act, 2001
Act 28 of 2001
- Published in Government Gazette 22857 on 23 November 2001
- Assented to on 12 November 2001
- Commenced on 23 November 2001
- [This is the version of this document as it was from 23 November 2001 to 31 October 2008.]
Introductory provisions
1. Definitions
In this Act, unless the context indicates otherwise—“company” includes a close corporation referred to in the Close Corporations Act, 1984 (Act No. 69 of 1984);“financial institution” means—(a)any person or institution referred to in the definition of ‘financial institution’ in section 1 of the Financial Services Board Act, 1990 (Act No. 97 of 1990);1 or(b)any medical scheme contemplated in section 1 of the Medical Schemes Act, 1998 (Act No. 131 of 1998);“institution”, for the purposes of sections 5, 6, 9 and 10, means—(a)a financial institution;(b)any person, partnership, company or trust in which, or in the business of which, a financial institution or an unregistered person has or had a direct or indirect interest;(c)any person, partnership, company or trust which has or had a direct or indirect interest in a financial institution or unregistered person, or in the business of a financial institution or an unregistered person;(d)a participating employer in a pension fund organisation;(e)any person, partnership, company or trust that controls, manages or administers the affairs or part of the affairs of a financial institution or an unregistered person; or(f)any unregistered person;"nominee company" means a company, controlled by a financial institution, which—(a)is incorporated under the provisions of the Companies Act, 1973 (Act No. 61 of 1973);(b)has as its principal object to act as nominee for, or representative of, any person in the holding of any property in trust for such person or persons;(c)is precluded by its memorandum of association from incurring any liabilities other than those to the persons on whose behalf it holds assets, to the extent of their respective rights to, and interest in, such assets; and(d)has entered into an irrevocable written agreement with a financial institution which controls the company, and in terms of which such financial institution has undertaken to pay all the expenses of, and incidental to, its formation, operations and liquidation;“registrar” means—(a)the registrar as defined in any of the Acts referred to in paragraph (a) of the definition of ‘financial institution’ in section 1 of the Financial Services Board Act, 1990;(b)the executive officer defined in section 1 of the Financial Services Board Act, 1990; or(c)the registrar of medical schemes referred to in section 1 of the Medical Schemes Act, 1998;“trust property” means any corporeal or incorporeal, movable or immovable asset invested, held, kept in safe custody, controlled, administered or alienated by any person, partnership, company or trust for, or on behalf of, another person, partnership, company or trust, and such other person, partnership, company or trust is hereinafter referred to as the principal;“unregistered person” means any person, partnership, company or trust not registered, approved or otherwise authorised by the registrar under a relevant law to carry on the business of a financial institution, but who or which carries on such business or a business corresponding to a business normally carried on by a financial institution.Chapter 1
Funds and trust property held by financial institutions
2. Duties of persons dealing with funds of, and with trust property controlled by, financial institutions
A director, member, partner, official, employee or agent of a financial institution or of a nominee company who invests, holds, keeps in safe custody, controls, administers or alienates any funds of the financial institution or any trust property—3. Declaration of interest
4. Investment of trust property
Chapter 2
Enforcement
5. Appointment of curator
6. Powers of registrar
7. Declaration of certain practices as irregular or undesirable
8. Restriction on powers of registrar
Despite any other provision of this Act, the registrar may not act under section 5, 6, or 7 in respect of a stock exchange, financial exchange, member or stock-broker referred to in paragraph (a)(v) and (vi) of the definition of ‘financial institution’ in section 1 of the Financial Services Board Act, 1990, unless the registrar—9. Records and entries in books of account admissible in evidence
In any proceedings conducted in terms of this Act, the records and books of account of an institution, a nominee company or a trust administered by such institution are admissible as prima facie evidence of the matters, transactions and accounts recorded therein, if supported by an affidavit by a person who alleges in that affidavit that person—10. Offences
11. Repeal of laws
The laws mentioned in the Schedule are hereby repealed to the extent set out in the third column of the Schedule, subject to the provisions of section 13.12. Status of footnote
13. Transitional provision
Anything done or deemed to have been done under any provision of a law repealed by section 11 and which could be done under a provision of this Act, is deemed to have been done under the last-mentioned provision.14. Short title
This Act is called the Financial Institutions (Protection of Funds) Act, 2001.History of this document
01 June 2023
01 April 2018
28 February 2014
03 June 2013
Amended by
Financial Markets Act, 2012
Read this version
01 November 2008
23 November 2001 this version
Commenced
12 November 2001
Assented to
Subsidiary legislation
Title | Numbered title |
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Guidelines on the Conduct of Curators, 2015 | Board Notice 56 of 2015 |