Financial Institutions Amendment Act 50 of 1986

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50 of 1986

The Financial Institutions Amendment Act 50 of 1986 intends:

  • to amend the Insurance Act, 1943 [repealed in January 1999], so as
    • to extend the powers of the registrar to cancel the registration of an insurer;
    • to further limit the extent to which outstanding premiums in respect of short term and compulsory third party insurance business may be treated as assets by insurers;
    • to further regulate the transmission of short-term insurance premiums received by intermediaries;
    • to limit the insured sum and the scope of the risk under policies issued in pursuance of certain conditional transactions;
    • to prohibit the acquisition without the registrar's prior consent of any interest of one-quarter or more in a registered insurer;
    • to revise the prohibition concerning differentiation, inducement and granting of credit for the payment of premiums with regard to certain policies;
  • to amend the Pension Funds Act, 1956, so as
    • to extend the scope of the valuator's report on his investigation as to the financial condition of a pension fund;
    • to impose on a pension fund the obligation to submit a scheme for the elimination of a deficiency reported by the valuator of a fund;
    • to revise the conditions on which housing loans may be granted by registered pension funds to their members and to widen the scope of the prohibition relating to such loans;
    • to authorize the registrar to prohibit undesirable practices and business methods by pension funds and to increase certain fines;
  • to amend the Stock Exchanges Control Act, 1985 [repealed in February 2005], so as to extend the definition of "president" and to include the South African Reserve Bank as a designated institution in section 3 (3) of the said Act; and
  • to provide for incidental matters.

Commencement

28 May 1986

Amendments

Amended by Long-term Insurance Act 52 of 1998

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