We welcome the President’s signing into law of the Financial Sector Regulation Act of 2017.
The banking industry fully supported the FSR Bill during its passage through parliament. The new act aligns South African banking regulations with global best practice, which creates a Prudential Authority and a Market Conduct Authority and a formal financial stability mandate that is allocated to the SARB. We look forward to working with the new regulatory authorities to give effect to the tenor of the new regulatory framework.
This sophisticated piece of legislation brings South Africa in line with — and in some instances beyond — prudential and market-conduct reforms around the world.
The banking sector also welcomes the approach to protect consumers through the conduct regulatory framework
The legislation puts the entire financial sector under one roof as far as regulation of the sector is concerned. The Prudential and Conduct regulators will be responsible for regulating the entire financial sector, and not just banks. Although the NCR remains under dti and is outside of “Twin Peaks”, we are comforted by the formation of a Council of Regulators, including the NCR and the mechanisms for co-ordination created in the Act. We trust this will take us some way towards coordinating the regulation of the sector. The new law will add to South Africa’s already sound financial market and banking regulatory framework.