1 Other regulatory updates Town Hall Meeting June 2013 Adri Messerschmidt

2 Pension Funds Act  Conditions in terms of section 13B of the Pension Funds Act  Second draft August 2012  FSB Consultation Workshop on 15 May 2013  Expect a third draft to be released for comment  Will be applicable to benefit administrators only  Investment administrators will be regulated under FAIS  Good Governance Directive (PF130)  PF130 (guidance) to be made a directive  ASISA represented on FSB Working Group to prepare draft for comment  Financial Services Laws Amendment Bill creates provision  Working Group has met 4 times since late 2010 to discuss a first draft  FSB in the process of preparing a legal draft  Release date of draft for public comment unknown.

3 Pension Funds Act  Regulation 28  Derivatives Notice  Second draft June 2012, submitted comments on 23 July 2012  Discussed with FSB September 2012  Discussed further at two meetings during May 2013  Third draft notice expected to be released for comment  Hedge Funds Notice  First draft June 2012, submitted comments on 23 July 2012  Discussed with FSB September 2012 and May 2013  ASISA requested the FSB not to include requirements in respect of structures ahead of the implementation of a regulated product structure in CISCA, under consideration  Second draft expected to be released for comment

4 FAIS  Requirements for nominees  Draft amendments applicable to all nominees published July 2012, submitted comments on 31 July 2012  Amendments to FAIS Regulations and Code of Conduct for Administrative and Discretionary FSPs i.r.o. nominees will follow  Second draft amendments expected to be published  Financial Soundness Requirements  Published 11 December 2012  Provision that assets invested in related parties and entities to whom financial services are rendered be excluded from the capital requirement problematic, may apply for exemption  FSB approval of specimen mandates  Cat II & IIA FSPs  FAIS SC will propose alternative to FSB

5 FAIS  Compliance Report for Long-term Insurance Category A and Friendly Society Benefits  Being developed by FSB, ASISA part of Working Group  List of recognised qualifications  Will address practical difficulties with the list with the FSB  Continuous Professional Development  General exemption published in October 2012  Requirements to be re-designed  Consultation expected to start Q3 2013

6 FAIS  Compliance Officer Regulatory Exams  FSB will soon put out tender for development and maintenance of exams  Envisaged that the exams will be ready by February 2014  Second level (product) regulatory exams  FSB informed examination bodies of intention to suspend exams  Intention to consult with industry to find alternative solutions to problems experienced with first level exams and to address unique challenges of these exams  Time periods to pass the exams  ASISA requested alignment with period as applicable to services under supervision  Draft amendments to Fit and Proper Determination being awaited

7 New Acts  Credit Rating Services Act  Regulates credit rating agencies and the publication of credit ratings  Came into operation 15 April 2013  Credit rating agencies have until 17 December 2013 to be registered  Financial Markets Act  Replaces Securities Services Act  Regulates financial markets, exchanges, central securities depositories, clearing houses, trade repositories, securities trading, clearing and settlement, custody and administration of securities, insider trading and other market abuses  Came into operation on 3 June 2013

8 F S L G A B  Financial Services Laws General Amendment Bill  Tabled in Parliament September 2012  Public hearings in Parliament concluded in April 2013  NT and the FSB will respond to public hearings 18 June 2013 (provisional date)  Main concern that extended powers granted to the FSB should be balanced by an appropriate prescribed consultation process