,Well-structured LML4807 Assignment 2 (ANSWERS)
Semester 1 2025 - DISTINCTION GUARANTEED.
(DETAILED ANSWERS - DISTINCTION
GUARANTEED!).....
MULTIPLE CHOICE,ASSURED EXCELLENCE
Read the following statement and answer the question that
follows. “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) (b) The relevant legal
principles. (5) (c) Critical analysis of the legal principles and how
they apply to the statement. (3) (d) Your conclusion on the
correctness of the statement. (1)
Table of Contents
, 1. Introduction
2. (a) The Legal Issue that Arises from the Statement
3. (b) The Relevant Legal Principles
4. (c) Critical Analysis of the Legal Principles and Application
to the Statement
5. (d) Conclusion on the Correctness of the Statement
Introduction
The regulation of banking activities in South Africa is primarily
governed by the Banks Act 94 of 1990. This Act defines the
legal framework within which banking business may be
conducted and outlines the requirements for registration as a
bank. The statement in question highlights the tension between
the form and substance of activities that appear to be banking
in nature and the legal thresholds that trigger regulatory
oversight. This discussion critically examines the legal concepts
underpinning the “business of a bank” and the taking of
“deposits,” as well as the exceptions and exclusions provided by
the Banks Act, in order to assess the correctness of the
statement.
(a) The Legal Issue that Arises from the Statement (1)
Semester 1 2025 - DISTINCTION GUARANTEED.
(DETAILED ANSWERS - DISTINCTION
GUARANTEED!).....
MULTIPLE CHOICE,ASSURED EXCELLENCE
Read the following statement and answer the question that
follows. “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) (b) The relevant legal
principles. (5) (c) Critical analysis of the legal principles and how
they apply to the statement. (3) (d) Your conclusion on the
correctness of the statement. (1)
Table of Contents
, 1. Introduction
2. (a) The Legal Issue that Arises from the Statement
3. (b) The Relevant Legal Principles
4. (c) Critical Analysis of the Legal Principles and Application
to the Statement
5. (d) Conclusion on the Correctness of the Statement
Introduction
The regulation of banking activities in South Africa is primarily
governed by the Banks Act 94 of 1990. This Act defines the
legal framework within which banking business may be
conducted and outlines the requirements for registration as a
bank. The statement in question highlights the tension between
the form and substance of activities that appear to be banking
in nature and the legal thresholds that trigger regulatory
oversight. This discussion critically examines the legal concepts
underpinning the “business of a bank” and the taking of
“deposits,” as well as the exceptions and exclusions provided by
the Banks Act, in order to assess the correctness of the
statement.
(a) The Legal Issue that Arises from the Statement (1)
