2. Financial services
(1) For the purposes of this Act, the following activities shall be deemed to be financial services:
(a) The exchange of currency (whether effected by the exchange of bank notes or coin, by crediting or debiting accounts, or otherwise);
(b) the issue, payment, collection or transfer of ownership of a cheque or letter of credit;
(c) the issue, allotment, drawing, acceptance, endorsement or transfer of ownership of a debt security;
(d) the issue, allotment or transfer of ownership of an equity security or a participatory security;
(e) ……….
[Paragraph (e) deleted by section 19 of Act 37 of 1996]
(f) the provision by any person of credit under an agreement by which money or money’s worth is provided by that person to another person who agrees to pay in the future a sum or sums exceeding in the aggregate the amount of such money or money’s worth;
[Paragraph (f) substituted by section 19 of Act 37 of 1996]
(g) ……….
[Paragraph (g) deleted by section 19 of Act 37 of 1996]
(h) ……….
[Paragraph (h) deleted by section 19 of Act 37 of 1996]
(i) the provision, or transfer of ownership, of a life insurance policy, the provision or transfer of ownership of reinsurance in respect of any such policy: Provided that such an activity shall not be deemed to be a financial service to the extent that it includes the management of a superannuation scheme;
[Paragraph (i) substituted by section 19(1)(d) of Act 37 of 1996, amended by section 67(1) of Act 34 of 2019 and substituted by section 49(a) of Act 20 of 2021]
(j) the provision, or transfer of ownership, of an interest in a superannuation scheme;
[Paragraph (j) substituted by section 19 of Act 37 of 1996]
(k) the buying or selling of any derivative or the granting of an option: Provided that where a supply of the underlying goods or services takes place, that supply shall be deemed to be a separate supply of goods or services at the open market value thereof: Provided further that the open market value of those goods or services shall not be deemed to be consideration for a financial service as contemplated in this paragraph;
[Paragraph (k) substituted by section 13 of Act 136 of 1992 and section 82 of Act 53 of 1999 and amended by section 93 of Act 32 of 2004 and section 41 of Act 9 of 2006]
(l) ……….
[Paragraph (l) deleted by section 44 of Act 16 of 2004]
(m) ……….
[Paragraph (m) deleted by section 10 of Act 20 of 1994]
(n) ……….
[Paragraph (n) substituted by section 10 of Act 20 of 1994 and deleted by section 19 of Act 37 of 1996]
(o) the issue, acquisition, collection, buying or selling or transfer of ownership of any cryptocurrency:
[Paragraph (o) added by section 90(1)(a) of Act 23 of 2018 effective on 1 April, 2019]
Provided that the activities contemplated in paragraphs (a), (b), (c), (d), (f) and (o) shall not be deemed to be financial services to the extent that the consideration payable in respect thereof is any fee, commission, merchant’s discount or similar charge, excluding any discount cost.
[Subsection (1) amended by section 19(1)(g) of Act 37 of 1996, by section 87(1)(a) of Act 30 of 1998 and by section 90(1)(b) of Act 23 of 2018 effective on 1 April, 2019]