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The scene setter



The Financial Sector Conduct Authority (FSCA), must deliver on its key mandates in a challenging economic climate. The financial sector is a crucial component of South Africa’s economy and developmental goals, and the regulation and supervision of FSCA thereof will have to be modern, relevant and thorough. The importance of the FSCA’s role cannot be understated in this regard.

This regulation and supervision, led by the FSCA, will have to ensure that stability is established in financial markets, while facilitating and contributing to best practices that are founded on increasingly financially literate customers in the industry. The core guiding principle of fair treatment of customers can only be achieved when the customers are empowered and knowledgeable, and the FSCA’s oversight role enhances ethical practice by all stakeholders in the financial services sector.

One of the key responsibilities of the FSCA is to protect financial customers and ensure that they are treated fairly. This will be further enabled by the promulgation of the Conduct of Financial Institutions (COFI) Bill, which is currently open for public comment: https://pmg.org.za/call-for-comment/784/

Whilst the Financial Sector Regulation Act (FSR Act) outlines what customers and the financial industry can expect from the financial sector regulators, the COFI Bill indicates what customers and other players in the financial industry value chain can expect from financial institutions.

The FSCA regulatory strategy sets out that the Regulator needs to be:

  • Pre-emptive and proactive

  • Risk-based and proportional

  • Intensive and intrusive

  • Outcomes based

  • Transparent and consultative

  • Comprehensive and consistent

  • A credible deterrent

  • Aligned with international standards


    • What therefore will set the FSCA up for success is a consistent application of these guiding principles in our regulatory and supervisory approach. The Regulatory strategy has outlined how these principles will be applied towards realising an industry that ensures that financial customers are informed and empowered, treated fairly and that Financial Markets are efficient and have integrity.

    Mr. Abel Sithole
    FSCA Commissioner