Financial Sector Law Amendment Bill of 2020 among new directives passed for lockdown level 3
The government has made a number of changes to South Africa's level 3 lockdown regulations.
According to a statement released on Thursday, 11 June, the National Coronavirus Council (NCCC) tabled a number of recommendations pertaining to the enhanced risk-adjusted alert level 3 of the national lockdown. These recommendations are based on submissions made by various sectors and deliberations by the National Joint Operational and Intelligence Structure.
The full list of recommendations is still pending approval from the Ministerial Health Advisory Committee, but a number of new directives have been published which amend the country’s existing lockdown regulations and provide clarity on a number of sectors.
Among the new directives for travel, sport and media, the cabinet also approved the submission of the Financial Sector Law Amendment Bill of 2020 to parliament.
The bill proposes to designate the South African Reserve Bank (SARB) as the Resolution Authority and enhances the SARB’s regulatory tools for discharging its statutory mandate of ensuring the stability of the financial system.
According to the statement, the bill also proposed a new framework to resolve financial institutions, primarily banks, when they enter a period of financial distress. It also introduces South Africa’s first comprehensive deposit insurance scheme that will ensure that depositors are paid their funds when a bank fails.