Source:
http://www.sadc.int/english/key-documents/protocols/protocol-on-finance-and-investment/#annex10
Extracted from the SADC Protocol on Finance and Investment.
ANNEX 10
CO-OPERATION ON NON-BANKING FINANCIAL INSTITUTIONS AND SERVICES
PREAMBLE
The High Contracting Parties:
RECALLING that the Committee of
Insurance, Securities and Non-Banking financial Authorities of SADC
(“CISNA”) was established in June 1998 by the Insurance, Securities and
Non-Banking Financial Authorities in the SADC Region (“the
Authorities”);
NOTING that a strategy was developed to
give direction to the activities Of CISNA and to contribute to the sound
regulation, effective supervision and rapid development of the
financial services industries;
REALISING that financial institutions
supervised by the Authorities are critical for mobilising savings which
are important for the expansion of productive capacity and that such
institutions require a supporting regulatory framework:
(a) which will attract the investments required for creating economic development within the Region;
(b) for managing the
financial risks faced by the financial institutions and users of
financial products and services in the Region; and
(c) which must not only be efficient but also properly enforced;
AWARE that there should be close
co-operation between the Authorities for the purpose of carrying out
CISNA’s objectives in the pursuit of complementary goals to achieve an
integrated and credible SADC capital market;
NOTING the increasing need for
internationalization, and harmonisation of financial institutions and
the interdependence of the activities of financial institutions due to
the use of modern technology and closer co-operation between financial
institutions;
RECOGNISING the need to mobilise savings that can be used to expand SADC’s productive capacity;
FURTHER NOTING that broad objectives
have been set in the CISNA Strategic Plan to achieve the successful
regulation and supervision of non- banking financial institutions and
the need to share information.
CONSCIOUS that the achievement of the
objectives referred to in the CISNA Strategic Plan will be accomplished
at different times and in different phases;
NOTING the establishment of CISNA, the
adoption of the CISNA MOU and 100 the obligations imposed on the
Authorities in the said MOU HEREBY AGREE as follows:
ARTICLE 1
DEFINITIONS
1. In this Annex, terms and expressions
defined in Article 1 of the Treaty shall bear the same meaning unless
the context otherwise requires.
2. In this Annex, unless the context otherwise requires:
“Authority” means any organ or entity
responsible for the regulation and supervision of non-
banking financial institutions in their
respective jurisdictions within SADC or any designated
representative of such authority;
“CISNA” means the Committee of
Insurance, Securities and Non-banking Financial
Authorities of SADC and the Authorities;
“CISNA Strategic Plan” means the CISNA Strategic Plan set out in Addendum A to this Annex;
“non- banking financial institutions”
means any provider of financial advisory and intermediary services,
collective investment schemes, insurance institutions and retirement
funds regulated or supervised by their respective Authorities;
“financial products and services” means
long-term and short-term insurance contracts or policies, benefits
provided by retirement funds, financial advisory and
intermediary services, shares, debentures, bonds
and other forms of securitised debt, futures and derivative
products including commodity derivatives,
participatory interests in collective investment schemes,
and other securities traded in the respective jurisdictions of
the Authorities;
“financial services industry” means the
supply of financial products and
services by financial institutions throughout
the Region;
“jurisdiction” means the country, state
or any other territory, as the case may be, in which
an Authority can exercise its powers;
“IAIS” means the International Association of Insurance Supervisors;
“IOPS” means the International Organisation of Pension Regulators and Supervisors;
“IOSCO” means the International Organisation of Securities Commissions;
“Requested Authority” means the Authority to whom a request is made in terms of this Annex ;
“Requesting Authority” means the Authority making a request pursuant in terms of this Annex;
“securities” means bonds, shares, stock,
debentures, securitised debt
instruments, equity instruments, debt
instruments, futures and derivative instruments (including
commodity derivatives), participatory interests in
collective investment schemes, and any similar securities to, or
combination of, the aforementioned.
ARTICLE 2
ESTABLISHMENT OF THE COMMITTEE OF INSURANCE SECURITIES AND NON-BANKING FINANCIAL AUTHORITIES
There is hereby established a Committee
of Insurance, Securities and Non- Banking Authorities of the Southern
African Development Community.
ARTICLE 3
COMMUNICATION AND EXCHANGE OF INFORMATION
1. There should be high-level contact
between the Authorities in order to inform each other of any
significant changes in their respective regulatory environments with a
view to harmonizing each Authority’s approach on the subject covered
by the shared information.
2. The Authorities shall put one another
on their mailing lists for the receipt of periodicals and other
important communications.
3. The Authorities will encourage and enhance contact amongst the staff of the Authorities
ARTICLE 4
INFORMATION SHARING
1. The Requested Authority should use
its best efforts to obtain information from its own records or from
institutions within its jurisdiction in order to provide a Requesting
Authority with information that will allow such authority to fulfil its
regulatory and supervisory responsibilities.
2. If any Authority comes into
possession of information that would be likely to assist another
Authority in administering or enforcing the laws or regulations for
which it is responsible, the first-mentioned Authority will endeavour to
notify the other Authority of the existence of that information.
ARTICLE 5
REQUEST FOR INFORMATION AND ASSISTANCE
1. The provisions of the Annex on the
Exchange of Information and Surveillance of Securities, Insurance and
Retirement Activities will, with the necessary changes, apply to: (a)
requests for information and assistance; (b) the execution of such
requests; (c) the permissible uses of information; (d) the rights of
Requested Authorities; (e) confidentiality; and (f) the costs of
investigations.
ARTICLE 6
COMPLIANCE WITH INTERNATIONAL STANDARDS (DIAGNOSTIC EXERCISE)
1. In order to assist the legislature
with the drafting or amending of legislation that is compliant with
international standards, the Authorities shall:
(a) undertake in
their respective jurisdictions a diagnostic study, analysis or
assessment that focuses primarily on assessing the regulatory
framework and supervisory practices in terms of the objectives and
principles of the IOSCO, the IAIS and the IOPS;
(b) before submission of the assessments verify such assessments through Authority peer or third party review; and
(c) adopt and
develop the required structures in line with the objectives and
principles recommended by IOSCO, IAIS and IOPS, if the assessment
demonstrates that is what is required.
ARTICLE 7
RELATIONSHIP WITH INTERNATIONAL BODIES
1. The Authorities should:
(a) become members of and liaise with IOSCO, IAIS and IOPS; and
(b) disseminate to other Authorities, who are not members of IOSCO, IAIS and IOPS, information derived from those institutions.
ARTICLE 8
DEVELOPMENT PROGRAMME
1. State Parties agree that, the
Authorities should, in order to develop focused programmes for their
respective financial services industries, assess the level of
development of their non- banking financial institutions with regard to,
inter alia:
(a) the supply and use of financial products and services;
(b) level of competition; and
(c) any barriers to development.
ARTICLE 9
HARMONISED FINANCIAL REGULATORY REGIME
The Authorities shall work towards the
harmonisation of their respective laws and regulations and regulatory
and supervisory practices with the aim of preventing or reducing
regulatory arbitrage.
ARTICLE 10
TRAINING AND EDUCATION OF STAFF
The Authorities shall:
(a) ensure that both
local and foreign training opportunities are developed, expanded and
hosted throughout the Region, and made available to the staff of all
Authorities;
(b) identify their training needs;
(c) explore the development programme(s) suitable for their needs;
(d) assist as much as possible with the presentation of such training programmes;
(e) organise and encourage attachments throughout the Region or abroad to provide on-the-job training;
(f) organise attachments and shall mutually agree on the duration thereof.
ARTICLE 11
CROSS-BORDER CO-OPERATION AMONG AUTHORITIES
1. The Authorities:
(a) shall identify
cross-border activities that could form the subject of cross-border
co-operation amongst Authorities, and between Authorities and foreign
counterparts (i.e. the prevention of unscrupulous operations, increased
access to information, dual listings, the introduction of legislation
to prevent money laundering, including the financing of terrorism); and
(b) are committed to facilitate mutual exchange of information and assistance.
ARTICLE 12
CONSUMER AWARENESS CAMPAIGNS
1. The Authorities shall:
(a) assist each other with the introduction of suitable consumer awareness campaigns for their respective jurisdictions;
(b) share with one another problems identified and methodologies used to promote their respective awareness campaigns;
(c) identify the
consumer awareness campaigns and initiatives already introduced in
their respective jurisdictions to inform and educate consumers of
financial products and services; and
(d) assess whether adequate programmes have been introduced and implement initiatives that will enhance consumer awareness.
ARTICLE 13
MEETINGS AND SUBCOMMITTEES
1. The Authorities shall meet as often
as deemed necessary but at least twice each year; and shall by
consensus, appoint a Chairperson and Vice-Chairperson for a period of
not more than two years.
2. The Chairperson and the Vice-Chairperson so appointed will represent CISNA at meetings of the Senior Treasury Officials.
3. The Authorities shall determine the rules and procedures of all meetings.
4. The Authorities may, by consensus,
set up such sub-committees as may be deemed necessary to carry out any
specific assignment or duty of CISNA.
ARTICLE 14
REFERRALS
If any Authority believes that a matter
falls more appropriately within the jurisdiction of another Authority,
or that some joint action is required in dealing with the matter, such
matter should be referred to the other Authority as soon as is
reasonably practicable.
ARTICLE 15
CESSION AND ASSIGNMENT
An Authority or designated
representative of such Authority may not cede, assign or transfer any
right or obligation granted under this Annex without the prior written
consent of all the Authorities, which consent shall not be unreasonably
withheld.
ARTICLE 16
CONSULTATIONS
The Authorities shall assist one another
to develop approaches for strengthening the regulation, supervision and
the efficiency of the financial institutions in the Authorities’
respective jurisdictions while avoiding, where possible, conflicts that
may arise from the application of differing regulatory and supervisory
practices.