There seems to be some confusion between a Joint Directive issued by the Financial Sector Conduct Authority and the Prudential Authority (Authorities) on 9 April 2020 and Call Centre Directions issued on 9 April 2020 by the Minister of Health and the Minister of Trade, Industry and Competition to Call Centres providing essential services. As a result of this confusion the Authorities published a Guidance Note on 19 April 2020 to provide clarity.
Below we briefly set out a summary of the Joint Directive issued by the Authorities and the Guidance Notice which seeks to clarify some issues.
Joint Directive to financial institutions performing essential services issued
The Financial Services Conduct Authority and the Prudential Authority (Authorities) issued specific directives to financial institutions on 9 April 2020 to take precautionary measures when performing essential services in terms of the Regulations made under the Disaster Management Act (as amended) in order to limit staff at offices to the minimum and to take other precautionary measures.
The Directive remains effective during the lockdown period and requires that where possible, staff should be enabled to work remotely, but that where this is not possible appropriate precautionary measures are put in place to reduce the risk of exposure, transmission and the spread of COVID-19. A few of these measures require financial institutions providing essential services to:
- Limit the number of staff at business premises;
- Avoid face to face meetings as far as possible;
- Implement physical distancing between desks and persons attending meetings;
- Provide staff and visitors with protective supplies including soap, tissues, hand sanitiser, and if possible, the wearing of surgical masks;
- Implement protocols for screening staff and visitors to the premises and testing staff that display symptoms similar to COVID-19 and requiring them to stay at home;
- Maintain a register of names and contact details of staff working on site and any visitors to the premises;
- Set up a room or area where staff who are sick at work can be safely isolated until they can return home;
- Develop and implementing an infectious disease preparedness and response plan; and
- Identify a workplace coordinator responsible for COVID-19 related issues, their impact and the provision of information to the Authorities should they be requested to do so.
To read the Joint Directive and the full list of measures to be implemented, click here.
Guidance Note published on 19 April 2020 to provide clarification
The Guidance Note confirms the following:
- The Joint Directive applies to financial institutions licenced in terms of a financial sector law which render essential services.
- The Call Centre Directions apply to call centres providing, among other services, financial services to international customers. The Call Centre Directions were not intended to apply to call centres that only provide financial services in South Africa.
- The Regulations made under the Disaster Management Act were amended on 16 April and now include “call centres necessary to provide debt restructuring for consumers of retailers and access to short-term insurance policies as a result of reduced income or loss of income”.
- The Call Centre Directions are intended to apply to financial institutions that operate call centres providing services to international markets and call centres necessary to provide services in point 3 above.
- Where a financial institutions operates both local call centres as well as call centres providing services to international markets or call centres that provide the services set out in point 3 above, then these financial institutions are expected to comply with both the Call Centre Directions and the Joint Directive.
- Financial institutions with call centres that fall within the ambit of both the Call Centre Directions and the Joint Directive due to shared facilities, must comply with the most onerous of the requirements.
- Where financial institutions have already implemented the requirements in the Call Centre Directions, these measures may remain in place in order to mitigate against any additional operational strain on financial institutions by undoing any implementation measures that may have already been taken. The Authorities furthermore urge financial institutions to be mindful of the purpose and spirit of the Joint Directive as it is intended to aid in creating a safer working environment for staff and to prevent the spread of COVID-19.
To read the Guidance Note published on 19 April 2020, click here.