Inspection of Financial Institutions

The Inspection of Financial Institutions Act 19981 provides exactly for that.

The Executive Officer of the Financial Services Board, referred to as the Registrar, can appoint inspectors to investigate the affairs of financial institutions.2 He can do the same if he has reason to believe that any person, partnership, company or trust which is not registered or approved as a financial institution, is nevertheless carrying on a business as a financial institution.

These inspectors have wide powers of interrogation, searching and entry, examination of documents, seizing same, and so on.

  1. It is an offence:
    • when requested by an inspector to take an oath or to make an affirmation, to refuse to do so;3
    • to refuse or fail to answer a question put by an inspector relating to the affairs of an institution being inspected;4
    • to give any false information to an inspector;5
    • to refuse or fail to comply with any reasonable request by an inspector in the exercise of his powers or the performance of his duties; and6
    • to hinder an inspector in the exercise of his powers or the performance of his duties;7
  2. It is an offence for any person, carrying out an inspection under the Act, to communicate any information that came to his knowledge in the performance of his duties to any other person, except if required by law.8
  1. As amended; the latest amendment was effected by Act 45 of 2013. 

  2. The Registrar of medical schemes does the same thing, under this Act, for Medical Schemes. 

  3. Section 12(a). 

  4. Section 12(b). 

  5. Section 12(c). 

  6. Section 12(d). 

  7. Section 12(e). 

  8. Section 8 read with section 12.