Financial Institutions Legal Snapshot

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The Competition Amendment Act was signed into law on 13 February 2019. The Act’s aim is to ‘open up new opportunities for many South Africans to enter various sectors of the economy and compete on an equal footing’. This sentiment is the spirit throughout the Act and the draft regulations that are undergoing an extensive comment process. The Act requires that the Minister make regulations in relation to the new provisions that restrict purchases by…
The Cyber Risk Management (CyRiM) Report 2019 shows that the economic damage to the world from a concerted global cyber-attack propagated by malicious email could range between $85 billion (least severe) to $193 billion (most severe). Retail at least could suffer the highest total economic loss globally ($15 billion), followed by healthcare ($10 billion) and manufacturing ($9 billion). It is not surprising that by far the biggest losses are in the US ($46-$89 billion) and Europe ($30-$76 billion), with Asia far…
Where a squirrel found its way onto a power station’s electrical transformer triggering an electrical arc that killed the squirrel and caused damage to the municipality’s property of $213 524, the court denied the municipality all-risks insurance cover because of an exclusion for ‘loss caused by arcing or by electrical currents other than lightning’. The court found that the loss was caused by arcing even though something else (ie the squirrel) triggered the arcing. This is…
On 21 December 2018 the government published their Draft Expropriation Bill 2019 for comment by 21 February 2019. As the laws will affect all of us you should read it and consider commenting. The Bill only relates to registered rights and will therefore mainly affect land rights and mineral rights. The government has said that the law will not be enacted until after the constitutional amendment process is completed. The Bill is intended to give an…
The prescribed rate of interest has been changed with effect from 1 January 2019 to 10.25% per annum. The previous rate was 10%. According to the Prescribed Rate of Interest Act, interest on debts where no rate is prescribed is calculated at the repo rate plus 3.5%. The prescribed rate of interest applies to all debts unless a different rate is set by law, by trade custom or by agreement between the parties. The parties can…
The England Appeal Court has held that a father’s claim against a clinic for breach of contract for damages suffered as a result of raising his child who was born by IVF to his estranged wife without his consent were not recoverable due to legal policy. The child was conceived via IVF using the gametes of the father and mother who had stored their embryos at the clinic for their future use. The father instituted…
In mid-January 2019, the SARB published its Consultation Paper on Policy Proposals for Crypto Assets, amid a growing interest, investment and participation in crypto assets by financial institutions and individuals and an estimated market capitalisation of about US$200 billion for crypto assets globally. Crypto assets are digital representations or tokens that are accessed, verified, transacted and traded electronically by a community of users. The name is telling. The SARB classifies them as assets and…
Personalised medicine is set to revolutionise the manner in which patients are diagnosed and treated. It involves genetic testing and a consideration of an individual’s health risk factors and genetic information and tailoring medical treatment accordingly. Such testing could lead to quicker diagnosis and treatment, but it does not come cheaply. It is unclear whether private medical aid schemes and state-funded healthcare institutions will cover the costs and to what extent. Apart from the costs…
Section 59 of the Customs and Excise Act 1964 provides that the seller of goods may recover the amount of duty paid on the goods in addition to the contract price ‘in the absence of agreement to the contrary’. The fact that the sale in Starways Trading v Pearl Island Trading was said to be ‘ex-warehouse’ was not a provision to the contrary. The effect of section 59 is to impose implied terms in relation to the…
In the context of a tax dispute the court held that the phrases ‘in terms of’ and ‘under’ a contract can have an ordinary or wide meaning of ‘by virtue of’ or ‘in consequence of’, or a narrow meaning requiring a direct and immediate connection between the contract and the money earned under the contract. It depends on the context. The context was whether the money earned from selling meals to patrons of a restaurant…