,LML4807 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2025 - DUE 5 May 2025; 100% correct
solutions and explanations.
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 How They
Apply to the Statement
5. (d) Conclusion on the Correctness of the Statement
1. Introduction
The business of banking in South Africa is governed by the
Banks Act (94 of 1990), which regulates the activities of entities
engaged in banking services. This includes the taking of
deposits and other financial activities that fall within the legal
definition of "banking business." The statement provided
highlights a critical issue surrounding the legal requirements for
entities that offer banking services and whether such entities
must comply with the registration requirements under the
Banks Act. This discussion aims to critically evaluate the
correctness of the statement by analyzing the legal principles
governing the business of a bank, particularly in relation to the
taking of deposits, and the exceptions under South African law.
2. (a) The Legal Issue that Arises from the Statement
The primary legal issue raised by the statement is whether
entities using the name "bank" or offering services typically
Semester 1 2025 - DUE 5 May 2025; 100% correct
solutions and explanations.
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 How They
Apply to the Statement
5. (d) Conclusion on the Correctness of the Statement
1. Introduction
The business of banking in South Africa is governed by the
Banks Act (94 of 1990), which regulates the activities of entities
engaged in banking services. This includes the taking of
deposits and other financial activities that fall within the legal
definition of "banking business." The statement provided
highlights a critical issue surrounding the legal requirements for
entities that offer banking services and whether such entities
must comply with the registration requirements under the
Banks Act. This discussion aims to critically evaluate the
correctness of the statement by analyzing the legal principles
governing the business of a bank, particularly in relation to the
taking of deposits, and the exceptions under South African law.
2. (a) The Legal Issue that Arises from the Statement
The primary legal issue raised by the statement is whether
entities using the name "bank" or offering services typically
