South Africa's securitisation regulations are designed to encourage securitisation issuance and foreign capital investment while managing risk to securitisation issuers and all movements of foreign exchange in and out of the country. The relevant legislation also incorporates internationally agreed-upon regulations pertaining to the finance industry and protection for both local and foreign investors.
Securitisation transactions in South Africa are regulated by the South African Registrar of Banks under the Banks Act, No. 94 of 1990 (Banks Act), and its regulations. The securitisation regulations provide that securitisation issuer special-purpose vehicles are exempt from having to register as banks.
The legislation in force in South Africa balances the many investment opportunities offered through securitisation with effective risk management for its issuers. Because of the complex nature of securitisation in South Africa, investors (especially those who are non-resident), should consult knowledgeable advisers.
“The legislation in force in South Africa balances the many investment opportunities offered through securitisation with effective risk management for its issuers.”
For a comprehensive document outlining the implications of this area of law in South Africa
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