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ZUG2020 – Law of financial institutions

Undergraduate – Unit

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.


Business and Economics


South Africa

  • Second Semester 2018

15 Credits


This elective is primarily concerned with the exposition of the legal principles and the regulatory regime governing financial institutions in South Africa. It focuses on financial institutions engaged in the intermediation processes, such as banks, securities and insurance institutions. Legal principles covered in the course regarding this sector relate mainly to those governing definitions, functions, significance in the economy, duties towards customers and basic rationales of why and how they are regulated.

The purpose of this module is therefore for students to gain basic knowledge and insight into the role of financial institutions in general. In as much as the emphasis of the course is South African law, it should be noted that for comparative purposes and because many of South Africa’s financial laws and regulations have their origins in English law, this course will, where necessary, make comparisons with the English approach to the regulation of the financial institutions.


  • To describe the importance of financial institutions as well as the institutional players and differences between these institutions in South Africa.
  • Identify the characteristics of each financial institution through their activities and regulations.
  • Describe the role of the Central Bank and the legal environment within which it supervises the financial sector.
  • Critique the definition and nature of the business of banking as defined in legislation.
  • Examine the legal obligations of financial institution professionals who offer financial services to the public and firms in South Africa.
  • Outline the remedies available to the parties arising from a dispute relating to financial services or products.
  • Explain basic legal concepts and processes that are aimed at minimising abuse of financial intuitions and the financial sector in South Africa.


Within semester assessment: 50%
Examination: 50%

Workload requirements

Minimum total expected workload to achieve the learning outcomes for this module is 150 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. The module requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.


Corporations Law (ZUG1016)