South Africa Tightens Regulatory Screws on Financial Institutions

The Financial Sector Conduct Authority (FSCA) is taking a more stringent approach to overseeing financial institutions in South Africa. With the empowerment of the Financial Sector Regulation Act, No. 9 of 2017 (FSRA), the regulator will continue to supervise banks and other financial firms under a comprehensive framework.

Key Provisions of the FSRA

The FSRA has granted the FSCA significant powers to enforce conduct standards on financial institutions. This includes:

• Joint Standards with Prudential Authority: The FSCA can issue joint standards with the Prudential Authority in areas where their interests intersect, ensuring a cohesive approach to regulation.
• Guidance Notices and Interpretation Rulings: The regulator can provide clarity on complex regulatory issues through guidance notices and interpretation rulings.

Enhanced Oversight

Experts agree that these regulations will enable the FSCA to intensify its oversight of financial institutions in South Africa. By enforcing conduct standards and providing clarity on regulatory issues, the FSCA aims to promote a more stable and secure financial sector.