, LML4807 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2025 - DUE 5 May 2025
Read the following statement and answer the following
question.
“Often an entity that is given the name of a bank and renders
services that are associated with that of a bank does not always
satisfy the legal requirements for conducting the business of a
bank. Also, not every entity or person rendering similar services
is required to comply with the registration requirements to
render such services in terms of South African law. Under
certain circumstances, a conduct that seems to satisfy the
registration requirements may also be excluded from such
requirements”.
With reference to the requirements for conducting “the business
of a bank” and the taking of “deposit” in terms of the Banks Act
(94 of 1990), critically discuss the correctness of the above
statement. Your discussion must be formulated under the
following subheadings:
(a) The legal issue that arises from the statement. (1)
The legal issue that arises from the statement concerns
the distinction between entities that appear to perform
banking functions and the legal requirements for being
recognised and authorised as a bank under South
African law, specifically in terms of the Banks Act 94 of
1990.
Semester 1 2025 - DUE 5 May 2025
Read the following statement and answer the following
question.
“Often an entity that is given the name of a bank and renders
services that are associated with that of a bank does not always
satisfy the legal requirements for conducting the business of a
bank. Also, not every entity or person rendering similar services
is required to comply with the registration requirements to
render such services in terms of South African law. Under
certain circumstances, a conduct that seems to satisfy the
registration requirements may also be excluded from such
requirements”.
With reference to the requirements for conducting “the business
of a bank” and the taking of “deposit” in terms of the Banks Act
(94 of 1990), critically discuss the correctness of the above
statement. Your discussion must be formulated under the
following subheadings:
(a) The legal issue that arises from the statement. (1)
The legal issue that arises from the statement concerns
the distinction between entities that appear to perform
banking functions and the legal requirements for being
recognised and authorised as a bank under South
African law, specifically in terms of the Banks Act 94 of
1990.
