FINANCIAL INSTITUTIONS (PROTECTION OF FUNDS) ACT 28 OF 2001

What is the purpose of FINANCIAL INSTITUTIONS (PROTECTION OF FUNDS) ACT 28 OF 2001

To regulate how financial institutions handle funds and trust property and protect them from misuse.

List the 3 fiduciary duties in Section 2?

Good faith

Care and diligence

No improper gain.

What must directors declare before investment?

Financial interest in the entity being invested in.

Under what names can trust property be invested?

The principal

The institution (in trustee role)

or Nominee company.

Who can appoint a curator and why?

Registrar, to manage or protect an institution in distress

Can the registrar freeze operations of an institution?

Yes, under Section 6(2)(b).

Can trust assets be claimed in liquidation?

No. They're legally protected and excluded.

What’s the penalty for violating fiduciary duties?

Up to R10 million fine or 10 years imprisonment or both.

Who supervises the curator or statutory manager?

The registrar.

Are unregistered institutions covered under the Act?

Yes, especially in enforcement provisions.