“In anticipation of public hearings on the 2020 Financial Sector Laws Amendment Bill and Pension Funds Amendment Bill, written submissions are sought by 17 May. With public hearings on the Fiscal Responsibility Bill in mind, written submissions are sought by 24 May. This was announced in separate notices issued by the National Assembly’s Standing Committee on Finance, which has scheduled the hearings for 18, 19 and 25 May respectively,” Pam Saxby notes in a recent LegalBrief.
Saxby highlights the following about these bills:
- The Financial Sector Laws Amendment Bill seeks to establish a framework for the orderly resolution of banks, their holding companies, systemically important non-bank financial institutions and their holding companies. To that end, a new Chapter 12A is proposed providing for the resolution objectives, powers and functions of the South African Reserve Bank; a deposit insurance fund; and a corporation for deposit insurance to administer the fund.
- The Pension Funds Amendment Bill and Fiscal Responsibility Bill were developed on behalf of the DA’s Dion George and Geordin Hill-Lewis. Their overarching objectives are respectively to allow pension fund members to obtain a loan, secured by a guarantee from a registered pension fund, to alleviate financial pressure during an emergency such as the Covid-19 epidemic; and to introduce statutory fiscal rules aimed at containing national debt and debt service costs.
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Safety net bill introduced – Provides guidelines on how to deal with a failing bank
