Financial Sector Conduct Authority Launched

National Treasury

The Financial Sector Conduct Authority (FSCA) has been launched.

In a speech at the launch of the FSCA, the finance minister, Nhlanhla Nene, declared that the birth of the FSCA and the Prudential Authority “marks the beginning of a new era for financial sector regulation in South Africa.

The FSCA flows from the twin peaks model of financial sector regulation put in place by the Financial Sector Regulation Act.

The act came into effect at the end of March 2018.

It puts a twin peaks model of financial sector regulation in place in South Africa.

The twin peaks model will see the Financial Sector Conduct Authority overseeing market conduct while the Prudential Authority will take responsibility for prudential regulation.

The minister pointed out that work was underway to harmonise market conduct legislation.

“Once passed into law, the Conduct of Financial Institutions Bill will entrench principles of fair customer outcomes across the sector”, he said.

In about four months, the FSCA will release its regulatory strategy that will set out in detail its approach over the next three years.

Sabinet Cape Town Office