Law & Regulation
Financial Sector Laws Amendment Act 23 of 2021
Inserts a new Chapter 12A (Resolution of Designated Institutions) into the Financial Sector Regulation Act 9 of 2017, designating SARB as resolution authority for designated institutions (principally banks) and establishing a deposit insurance framework (Corporation for Deposit Insurance and Deposit Insurance Fund). Phased commencement: various sections 24 March 2023; the bulk — including the bank resolution regime sections 166A–166Z — 1 June 2023; a further defined deposit-insurance section range (166AA–166AD, 166AF–166AG, 166AT, 166BC–166BE, 166BH) 1 April 2024.
Legal Significance
What This Instrument Does
Section 51 inserts Chapter 12A into the Financial Sector Regulation Act, comprising the resolution framework (sections 166A–166Z) and the deposit insurance architecture (sections 166AA onward). The resolution-framework sections and initial deposit-insurance sections commenced in the 24 March 2023 / 1 June 2023 tranches; a defined further set of deposit-insurance sections commenced separately on 1 April 2024. Instrument boundary: does not restate or reconstruct the FSR Act's full Twin Peaks prudential/conduct architecture (ZA-L-043 remains the Full V2 record for that framework) — confined to the resolution and deposit-insurance amendment layer; does not itself license or regulate a bank (Banks Act) or the central bank institutionally (SARB Act).
Key Provisions
- Section 51, inserting FSR Act Chapter 12A (sections 166A–166Z) — Resolution framework
Establishes the bank-resolution framework, commenced across the 24 March 2023 and 1 June 2023 tranches. Practical consequence: for lenders, bondholders and counterparties of a South African bank, this resolution regime displaces reliance on ordinary corporate winding-up or business-rescue outcomes for a failing designated institution.
- FSR Act sections 166AA onward — Deposit insurance architecture
Establishes a deposit insurance scheme administered by a newly created Corporation for Deposit Insurance and Deposit Insurance Fund, with a defined further section range (166AA–166AD, 166AF–166AG, 166AT, 166BC–166BE, 166BH) commencing separately on 1 April 2024. Practical consequence: identify which specific Chapter 12A provisions were operative on the relevant transaction date rather than assuming the whole Chapter commenced on a single date.
Legal Framework Position
- Banking & FinanceAmendment
- Insolvency / BankruptcySupporting / Related Instrument
Primary / Parent Instrument
Instrument Overview
- Official Citation
- 23 of 2021; published 28 January 2022
- Instrument Type
- Law / Act
- Source Language
- English
- Enactment Date
- 28 January 2022
- Last Verified
- 6 September 2026