Financial Services Law Archives

The Legal Due Diligence Findings That Derail South African PE and VC Deals Most Often

Banking & Finance Law, Corporate & Commercial Law, Employment Law, Financial Services Law, IP Law, Mergers & Acquisitions, Regulatory & Compliance Law, Shareholder Agreements, Tax Law, Transaction Support Services / loucile@caveat

Private equity and venture capital transactions in South Africa move through a predictable sequence: investment thesis, preliminary commercial assessment, indicative terms, and then due diligence. It is in due diligence that deals most often stall, reprice, or collapse – and the findings that cause this are, with notable regularity, things that were knowable before the

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Deals in Africa: Price the Execution, Not Just the Story

Financial Services Law, Fintech & Cryptocurrency Law, Mergers & Acquisitions / loucile@caveat

Great deals rarely fail on strategy – they stumble on execution. Investment memos model TAM (Total Addressable Market) and competition elegantly. Where value often leaks is in the plumbing: regulatory paths, contract transferability, data protection exposure, people risk, tax, and the assumption that targets are tidy when the reality is far more messy. If you’re

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Top 3 Reasons to Consider Business Rescue

Corporate & Commercial Law, Financial Services Law / caveat

Business rescue describes a process where directors of underperforming businesses are provided with assistance to allow their businesses to find their feet and develop strategies to re-establish their solvency. Let’s find out when it might be time to consider business rescue for your enterprise, as well as the possible benefits of this step. Financial Distress

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Financing Energy Projects: Legal Considerations and Strategies

Energy Law, Financial Services Law / caveat

In an era where sustainable energy is not just a preference but a necessity, South Africa stands on the brink of significant energy transitions. This necessitates a robust legal framework and solid financing strategies to effectively navigate the complexities of energy project development. In this article we examine critical legal considerations and strategies pivotal to

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Your Business may now be Required to ‘FICA’ Your Clients.

Financial Services Law / caveat

At Caveat Legal, we are committed to keeping you informed about regulatory changes that may affect your business operations. Many of you will be aware of the changes to the Financial Intelligence Centre Act (FICA) and, in particular, the addition of further categories of ‘Accountable Institutions’, such as high-value goods dealers, credit providers and crypto

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COFI: More work to be done before it’s effective

Financial Services Law, Legislation / caveat

In July 2022, the Financial Sector Conduct Authority (FSCA) released its regulation plan for the next three years (2022-2025). Most significant was the effective placing on the “back burner” of the conduct of financial institutions bill (COFI) which was previously anticipated to become effective in 2022. COFI has already been through two different drafts and

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The future of cryptocurrency regulation in South Africa

Financial Services Law, Legislation / caveat

On 11 June 2021, the Intergovernmental Fintech Working Group (IFWG), through its Crypto Assets Regulatory Working Group, published its position paper on the regulation of crypto assets in South Africa, with 25 recommendations. The regulation of crypto assets is focused on the governance of the activities of crypto assets services and in particular crypto asset

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Market conduct licence categories under COFI

Administrative Law, Financial Services Law / caveat

The implementation of the “twin peaks model” includes the enactment of the Conduct of Financial Institutions (“COFI”) Bill. COFI will be an umbrella piece of legislation embodying the principles of “treating customers fairly” (TCF) in order to regulate market conduct, and shall be governed by the FSCA. COFI will replace significant legislation including the Long-Term

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Securitisation as a Preferred Funding Mechanism

Banking & Finance Law, Commercial Law, Financial Services Law / caveat

When a business decides to raise funds, it has a number of options available. The most common options would be in the form of a loan from a licensed institution (whether in the form of overdrafts, revolving credit facilities, syndicated loans or other forms) or to approach the capital markets. These loans would c be

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Crypto Assets Defined as Financial Products

Financial Services Law, Fintech & Cryptocurrency Law / caveat

Summary: Crypto assets have been declared financial products in a draft declaration issued by the FCSA The draft is open to comment from the public until 28 January 2021 Those providing advice or intermediary services in respect of crypto assets will need to register as financial services providers and be subject to stricter controls On

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