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| Attachment | Size |
|---|---|
| act-54-1989.pdf | 2.05 MB |
54 of 1989
The Financial Institutions Second Amendment Act 54 of 1989 intends:
- to amend the Insurance Act, 1943 [repealed in 1999], so as
- to define or further define certain expressions;
- to reduce the period within which all registered insurers have to furnish certain information to the registrar of insurance;
- to extend the scope of an auditor's attestation of statements of liabilities;
- to authorize the Minister to prescribe by regulation a method for the calculation of unintimated claims relating to short term insurance business;
- to provide for the compulsory maintenance of a contingency reserve;
- to further regulate 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 increase the minimum amount of additional assets in addition to the prescribed minimum which a short term insurer has to hold, and to authorize the registrar to determine a smaller amount;
- to further regulate the transmission of short term insurance premiums received by intermediaries;
- to provide for the furnishing of guarantees to the South African Insurance Association;
- to provide for the transfer of the business of a registered insurer to a separate company free of charge;
- to prohibit the direct or indirect acquisition of control of a registered insurer without the said registrar's prior consent and to grant discretionary powers to the registrar in the absence of such approval;
- to extend the power of the Minister to make regulations;
- to provide for the imposition of penalties for failure to comply with section 20bis of the said Act;
- to authorize the Minister to promulgate regulations in connection with the maintenance of records and a subdivision of a class of insurance business;
- to limit the allowance for expenses which may be deducted from premiums in calculating the liability of an insurer under unmatured policies; and
- to prescribe the action to be taken by an insurer in the event of an operating loss;
- to amend the Pension Funds Act, 1956, so as
- to further define "dependant"; and
- to further regulate the disposal of pension benefits upon the death of a member of a registered fund;
- to amend the Friendly Societies Act, 1956, so as to identify the societies exempt from the operation of the Act;
- to amend the Inspection of Financial Institutions Act, 1984 [repealed in 1998], so as
- to authorize the registrar concerned to appoint a person who is not in the full-time employment of the State to undertake a certain inspection; and
- to provide that the expenses and remuneration of a temporary inspector shall be defrayed by the person being inspected;
- to amend the Stock Exchanges Control Act, 1985 [repealed in 2005], so as
- to define "bank";
- to amend the references in the said Act to the Building Societies Act, 1965;
- to further regulate the provisions relating to advertising, touting and canvassing for business;
- to extend the powers of the Registrar of Financial Institutions to obtain information from certain persons; and
- to create an offence relating to advertisements; and
- to provide for incidental matters.
Commencement
- 30 June 1989, Sections 1(c), 7, 14-16, 18, 20-24 (Gazette 11977 of 30 June 1989)
- 1 August 1989, Sections 25-31 (Gazette 12023 of 27 July 1989)
- 1 January 1990, Sections 1(a), 1(b), 1(d), 1(e), 1(f), 2-6, 8-13, 17 and 19 (Gazette 12239 of 29 December 1989)
