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2020/21 Division of Revenue Amendment Bill to be Tabled Soon

June 22, 2020

National Treasury

The Draft 2020/21 Division of Revenue Amendment Bill will be tabled in parliament soon.

National treasury published the draft bill’s explanatory summary in Government Gazette 43450.

According to the notice, the draft bill will be tabled once the 2020/21 Division of Revenue Bill has been signed by president Ramaphosa.

The bill was passed by parliament and sent for assent at the beginning of June 2020.

The draft bill aims to amend the Division of Revenue Act for the 2020/21 financial year, in accordance with section 12(4) of the Money Bills and Related Matters Act of 2009, as the national adjustments budget for the 2020/21 financial year necessitates changes to the act for the 2020/21 financial year.

The 2020 Special Adjustment Budget, set for tabling next week, seeks to modify the 2020/21 budget to make use of current baseline allocations to provide for the rapidly changing economic conditions and enable spending on the COVID-19 response.

The draft bill will be tabled in conjunction with the national adjustments budget and a revised fiscal framework for the 2020/21 financial year.

In Gazette 43447, treasury has published proposed amendments to Financial Intelligence Centre Act Schedules for comment.

Amendments are proposed for Schedules 1, 2 and 3.

Proposed amendments to Schedule 1 on list of accountable institutions include a new item 1: “A person who is admitted by the High Court to practise and authorised to be enrolled as a legal practitioner, conveyancer or notary in terms of section 24 of the Legal Practice Act, 2014 (Act 28 of 2014) and who is required to have a Fidelity Fund Certificate under section 84 of that Act.”

A new item 7A is proposed: “A co-operative bank as defined in the Co-operative Banks Act, 2007 (Act 40 of 2007)”.

New items 20, 21, 22 and 23 are also proposed focused on crypto assets.

Proposed amendments to Schedule 2 deal with the Financial Sector Conduct Authority and the Prudential Authority.

Comment is invited within 60 days of the date of publication.

In a separate matter, the Reserve Bank (SARB) recently announced the implementation of collateral substitution in terms of repurchase operations.

According to a statement, the SARB, in 2019, embarked on a project to enable collateral substitution in the weekly repos.

“In line with this, the SARB negotiated and finalised new Global Master Repurchase Agreements with its counterparts, to replace the Master Repurchase Agreements.”

Collateral substitution was implemented as from 15 June 2020.

“The implementation of collateral substitution will provide participants in the SARB’s repo operations the flexibility to substitute securities lodged as collateral, during the lifetime of the repo.”