The FSCA Celebrates Five-Year Milestone

Interview by Reneilwe Mthelebofu – Communications and Language Services (FSCA) 

Legend has it that the number five symbolises freedom, curiosity and change: a desire to have adventures and explore new possibilities with high energy and excitement. This is quite relatable, as the FSCA celebrates turning five-years old this year. Wow, hard to believe a whole five years has already gone by, right? If there was a time-machine, we would have loved to travel back in time in order to witness the conversations that led to the conceptualisation of the FSCA. Unfortunately, that is just not doable. What is doable however, is that we know of someone who was there when people sat around a table to deliberate on the big decision to establish the FSCA; and one of them was Mr Jabulane Hlalethoa, Divisional Executive of Corporate Services. We asked him to take us on the journey into memory, and this is what he had to say.

The FSCA Celebrates Five Years – Conversation with Jabulane Hlalethoa, Divisional Executive Corporate Services 

1. Please set the scene of some of the conversations that took place during meetings to discuss the formation of the FSCA?

The formation of the FSCA was not a smooth ride. A number of challenges had to be navigated. Some of the challenges created opportunities. When I joined the FSCA in 2004, there were talks about a single regulator. At that time, employees feared being absorbed into another already established entity i.e. the South African Reserve Bank. Such concerns led to uncertainties and staff started polarising as heuristics emerged. Fast forward a few months and we see the collapse of the economies of the northern countries such as Greece, meetings of the G20 countries and boom the conversations around Twin Peaks started to emerge. In hindsight, if lack of adequate communication from the leadership prior to formalities led to rumours and uncertainties, the publication of the Red Book by the Minister of Finance fast tracked the talks towards formation of the new entity. Internal task teams were established to map out the processes, conduct study tours and design a future based on various targeted operating models. KPMG were appointed through a competitive process to conceptualise the model that would see the insurance prudential department ringfenced and transferred to the SARB. And to alleviate any fears and to allay anxieties that arise with organisational change, a series of town hall sessions were held where all concerns could be addressed and in order to address any staff concerns, and to bring all staff members on board and to deal with the various concerns that staff had.

2. What was the overall vision for the organisation that you were crafting at the time?

The vision was to have a dedicated and focused conduct regulator with advanced systems to enable or forge collaboration between various Departments or Business Units. We also anticipated a new generation of leadership as most of the then leadership was nearing retirement age; so we used the opportunity to overturn the past and create a new culture befitting of the diversity within our institution. In order to embrace new ways of doing things, we embarked on a series of change management campaigns which were received with enthusiasm from all stakeholders. I am proud that we succeeded in achieving the desired state.

3. Please outline some of the major challenges faced during the transition period

Dealing with uncertainty of selling a dream to colleagues in the Insurance Supervision Department when the “land of honey” was at our peak sister the Prudential Authority (PA) was a major challenge. Another hurdle was having to deal with the anxieties of those that remained as they pondered about their futures, while the process of appointing the Commissioner and Deputy Commissioners was delayed.

4. How were they overcome?

Through ongoing conversations and intentional engagements to assist employees in adjusting to the imminent change.

5. Incredible! Now, with the FSCA finally launched what were some of your high hopes for the organisation? In reflection, have they been realised?

This is a difficult question. The change was not about my own perceptions per se, but rather the business imperative to change towards:

(1) Being a proactive and responsive organisation:  This is a journey that we are still traveling. The number of dip stick surveys that we conduct show that there has been a gradual, positive change of perceptions. I have been fortunate to have engaged with a group of journalists based in Gauteng and Cape Town who gave a positive account of the FSCA. Both were particularly impressed with our Communications department, their responsiveness and ability to manage pressing issues within a short period of time.

(2) Highly engaged staff. The survey conducted in December2023 scored our employees at 78% engaged (our benchmark was 80%). Considering our young staff complement, I am of the view that collectively we can do more and make the most out of the environment that we find ourselves in. As a public entity subjected to PFMA controls basically means we have to make do without some of the “nice-to-haves” typical of a modern, progressive workplace.   

6. Having played a part in the formation of this organisation that now turns 5, what are your wishes going into the next five years? How do you hope to positively impact the lives of financial customers? 

I would like to see more of our employees participating in various programmes launched by the organisation. We need more voluntarism from an active and proactive workforce that will provide a constructive voice in all what we do internally and externally as we deliver on our mandate.

In the last five years and in line with the original strategic objectives that were set, most of the milestones that have been achieved so far are quite impressive. Building a new organisation, one of the initial strategic priorities which Mr Hlalethoa was involved in, was achieved as follows:

Fig 1: Significant milestones achieved by the FSCA in the last five years in line with building a new organisation  

Over the next few editions we will be talking to other key people who played a role in building the FSCA, so be on the lookout for more riveting content! #FSCAturns5