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Financial Institution Security Measures in South Africa: A Guide to Compliance with Joint Standard 1 of 2023
The Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA) have published a joint standard aimed at ensuring that financial institutions have robust governance and risk management structures in place. The Joint Standard 1 of 2023 sets out requirements for information technology governance and risk management, which all relevant financial institutions must comply with by November 15, 2024.
Who is Affected?
The Joint Standard applies to:
- Banks and branches
- Mutual banks
- Insurers and their controlling companies
- Managers of collective investment schemes
- Market infrastructure providers
- Discretionary Financial Services Providers (FSPs)
- Administrative FSPs
Key Areas of Compliance
The Joint Standard focuses on various aspects, including:
IT Governance and Risk Management
- IT strategy
- IT risk management
- IT operations
- Handling sensitive or confidential information
- Risks associated with financial products and services
- IT programme and project management
- IT resilience and business continuity
Consequences of Non-Compliance
While there is no specific penalty mentioned in the Joint Standard, regulatory authorities may request information or conduct supervisory reviews. Non-compliance can result in a range of outcomes, including fines and reputational damage.
Responsibility for Compliance
The governing body (board of directors) is ultimately accountable for ensuring that the organisation meets the requirements of the Joint Standard.
Steps to Become Compliant
- Conduct a gap analysis to identify areas where existing policies and procedures need updating or supplementation
- Develop an implementation plan with milestones and deadlines
- Train staff on new policies and procedures
- Establish separate board committees to implement governance requirements
ENS’s Joint Standard Offering
ENS has established a Joint Standard offering to guide financial institutions through the compliance process. This includes:
- Introductory training for IT teams and stakeholders
- Risk assessment, policy, and product gap analysis
- Preparation of relevant documents (toolkits)
- Hotline for security breaches
- Amendment of existing documents
- Workshops and staff training
Contact Our TMT Experts
For more information, please contact one of our TMT experts:
- Ridwaan Boda:
rboda@ENSfrica.com - Kayla Casillo:
kcasillo@ENSafrica.com - Priyanka Naidoo:
pnaidoo@ENSafrica.com