Regulatory framework
changes and timeframes –

for a safer financial South Africa

The FSR Bill was reviewed by Parliament’s Standing Committee on Finance (SCOF), chaired by Yunus Carrim, in the course of last year and into this year.

As per direction from the SCOF, the Treasury has published a comments matrix responding to comments submitted on the FSR Bill. It also published a further draft of the FSR Bill reflecting proposed drafting changes to cater for comments submitted.

The FSR Bill is currently with the select Committee on The National Council of Provinces (NCOP).

Other regulatory reforms in the pipeline to support a stronger financial industry in South Africa include the Treating Customers Fairly framework, the Retail Distribution Review, changes to regulation of credit life insurance, significant changes to insurance laws and to the regulation of payments systems. Financial market regulation amendments include the implementation of G20 rules on central counterparties for over-the-counter (OTC) derivatives and recovery and resolution of financial institutions.

Ministerial Regulations and Notices Comment Matrix

In addition, amended Financial Intelligence Centre legislation is currently before Parliament that will change the requirements for financial institutions (as well as others such as lawyers and real estate agents who deal with the transfer of funds) in respect of their obligations regarding anti-money laundering and countering the financing of terrorism, which is also a global initiative.

“As such, we might expect to see some of the new regulatory principles being transmitted into regional agreements, or being adopted by other countries in the region and local institutions seek regulatory consistency”, says Yunus Ismail Carrim.

Watch Jonathan Dixon discuss the change in duties of the FSB under Twin Peaks on SABC News