Lerato Nkanza

The regulation of commercial paper issuance in South Africa has since 1994 been governed by an exemption notice (the Commercial Paper Regulations) that permits certain entities to issue debt instruments without being deemed to conduct “the business of a bank” under the Banks Act 94 of 1990. After more than three decades in operation, the Prudential Authority has recognised the need to modernise this regulatory framework to reflect current market practices and financial stability considerations.

The regulation of commercial paper issuance in South Africa has, since 1994, been governed by an exemption notice (the Commercial Paper Regulations) that permits certain entities to issue debt instruments without being deemed to conduct “the business of a bank” under the Banks Act 94 of 1990 (Banks Act).

Background and regulatory context Issuers that are not registered as banks under the South African Banks Act, 1990 rely on the safe-harbour provisions of the Commercial Paper Exemption Notice (the Commercial Paper Regulations) to undertake the issuance of debt securities in South Africa.