Financial Regulatory Updates in South Africa: FSCA Unveils Final Strategy for Promoting Financial Sector Transformation

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The Financial Sector Conduct Authority (FSCA) has published its final strategy for promoting financial sector transformation, as outlined in its Regulatory Strategy 2021-2025. The document follows a public comment period that began in February 2022 and concludes with a response document detailing the FSCA’s comments on stakeholder input.

Background

The FSCA recognizes its crucial role in promoting financial sector transformation, as envisioned by the Broad-Based Black Economic Empowerment Act (B-BBEE) of 2003. The Conduct of Financial Institutions Bill, to be tabled in Parliament later this year, contains key proposals strengthening the FSCA’s powers regarding financial sector transformation.

Key Changes

The strategy outlines how the FSCA will promote transformation within its current legislative framework and give effect to future proposals once the COFI Bill is enacted. Some of the key changes made in response to public comments include:

• Clarification of guiding legislative frameworks
• Reconsideration of a minimum B-BBEE Level 4 requirement
• Further details on proportionality in application

Commitment to Transformation

Commissioner Unathi Kamlana emphasized the FSCA’s commitment to promoting financial sector transformation, expressing gratitude for stakeholder input. The authority will work closely with relevant stakeholders, including government departments and agencies, to ensure successful implementation of its Transformation Strategy.

Accessing the Documents

The Transformation Strategy and Response Document are available on the FSCA website at https://www.fsca.co.za/Regulatory%20Frameworks/Temp/FSCA%20Transformation%20Strategy.zip.