Editor’s note: “This article was first published in August 2017 when the Financial Sector Regulation Act was signed into law. Today, the Act underpins the Twin Peaks regulatory model through the Financial Sector Conduct Authority (FSCA) and the Prudential Authority. For advice on compliance with South Africa’s financial regulatory regime, please contact KKA Attorneys.”

President Jacob Zuma has signed into law the Financial Sector Regulation Act, 2017.

The Act aims to achieve a financial system that works in the interests of financial customers, and supports balanced and sustainable economic growth in the Republic, by establishing, in conjunction with other financial sector laws, a regulatory and supervisory framework that promotes the following:

a)   Financial stability;
b)   The safety and soundness of financial institutions;
c)   The fair treatment and protection of financial customers;
d)   The efficiency and integrity of the financial system;
e)   The prevention of financial crime;
f)   Financial inclusion;
g)   Transformation of the financial sector; and
h)   Confidence in the financial system

The Act also establishes two new financial sector regulators, the Financial Sector Conduct Authority and the Prudential Authority with jurisdiction over all financial institutions, and to provide them with a range of supervisory tools to fulfil their objectives.

It further provides for, and ensures that there is, co-operation and collaboration between the financial sector regulators, the National Credit Regulator, the Financial Intelligence Centre and the South African Reserve Bank.