The Fatal Flaw in our Law
This article gives an interesting insight into the treatment of securities pledged to a secured party, and how these may be dealt with upon the insolvency of a South African party.
With Initial Margin (IM) requirements being phased in from 01 January 2018, and this margin being mainly pledged from one party to another, this article is very topical.
It seems some clarity is required in our Insolvency Act in South Africa to ensure that pledged securities posted as IM will be immediately available to the secured party to apply against a potential future exposure.
Read the article here - written by Bridget King, from Cliffe Dekker Hofmeyr.