Krugerrand dealers no longer required to be association members
31 Aug 2017
The Competition Commission and Rand Refinery (Pty) Ltd (Rand Refinery) have reached a settlement agreement that makes it no longer a requirement for dealers of Krugerrands, existing or prospective, to be members of the South African Association of Numismatic Dealers (SAAND).
The agreement follows an investigation by the Commission into allegations that Rand Refinery makes it a condition for anyone who wishes to be appointed as a dealer of bullion Krugerrand to be a member of SAAND, a voluntary association in the South African numismatic industry.
In terms of the agreement, Rand Refinery has undertaken to remove all clauses, in relation to the requirement, from its application forms as well as its website. The agreement has been filed with the Competition Tribunal for confirmation as an order by the Tribunal.
The investigation found that the requirement for SAAND membership can be used to raise entry barriers into the local numismatic industry.
Rand Refinery and the South African Mint jointly manage the business of the bullion Krugerrand through an incorporated joint venture, Prestige Bullion (Pty) Ltd (Prestige Bullion). Rand Refinery has therefore been tasked by Prestige Bullion to manage the sales and marketing of bullion Krugerrand in South Africa and abroad. To this end, Rand Refinery is the sole supplier of bullion Krugerrand to primary dealers locally and abroad.(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)