LML4807 - Exam (Q&A) 2021

Although, it is now possible for all banks to create different types of savings account, practice shows that in general the savings accounts presently offered by the banks exhibit the following characteristics: Deposits and withdrawals can be made at any time. There is no notice period for withdrawals. The customer can instruct the bank to make payment to 3rd parties (by way of stop orders or debit orders). The account is conducted by means of a traditional savings passbook or an auto teller card. The card grants access to the account through an auto teller machine. Two contracts come into being between the bank and savings account holder: A contract of loan for consumption is concluded, i.t.o. The bank borrows the first deposit from the customer and undertakes to borrow all further deposits as well. A contract of mandate i.t.o. which the bank undertakes to collect deposits in the form of cheques for the customer.

Section 47 of the FSR Act 9 of 2017 states that a regulatory strategy must address the regulatory and supervisory priorities for the Prudential Authority for the next three years; and the intended key outcomes of the strategy; It must also set guiding principles for the Prudential Authority on: how it should perform its regulatory and supervisory functions; the matters to which it should have regard in performing those functions; its approach to administrative actions; and how it should give effect to the requirements applicable to it with respect to transparency; openness to consultation; and accountability. And it must be aimed at giving effect to section 34(4) of the FSR Act 9 of 2017.