Interview by Reneilwe Mthelebofu – Communications and Language Services (FSCA)
Mr Olano Makhubela. That is a name that needs little introduction to people in regulation, given his extensive regulatory contribution, particularly in the Retirement Funds space. Recently Olano has undertaken a new venture to head up the Market Integrity and Decision Sciences division. We sat with him to get his thoughts on this move and other developments.
1. Please give us a brief background of your journey with the FSCA?
I spent 17 years at the National Treasury in the Financial Sector Policy Unit and moved to the then Financial Services Board (now FSCA) in 2017. At the FSCA I was employed as the Deputy Registrar and then Divisional Executive for Retirement Funds Supervision until June 2023. I am currently Divisional Executive for Market Integrity and Decision Sciences.
2. Congratulations! How has the move been thus far?
Market supervision is quite vast and complex. The move has been testing but equally rewarding as I had to move out of my comfort zone and learn a new area of responsibilities. Change helps one to grow and broaden experience.
3. Tell us a little more about the division and what do some of your duties entail in heading it?
The Division has been recently structured into two pillars of focus. The first pillar deals with market supervision, and that entails the supervision of credit rating agencies, financial benchmarks and Financial Market Infrastructures (FMIs) like exchanges, Central Counterparties and Securities Depositories. The second pillar focuses on market surveillance (e.g. detecting market abuse or manipulation), data analysis and targeted research. The second pillar seeks to further transform the organisation into a data and research driven decision maker and supervisor.
My daily duties vary but will entail assisting the team in making certain decisions, engaging with various stakeholders like regulated entities and other supervisors, signing regulatory correspondences, and ensuring the Teams work cohesively and efficiently.
4. What are some of the major projects the division is currently working on?
The law, some recommendations coming from the Financial Stability Board and recent Financial Sector Assessment Programme require us to strengthen the competitiveness, transparency and safety of our financial markets. The related projects in this regard include the supervision of financial benchmarks and non-bank Over-The-Counter (OTC) derivatives and providers; frameworks on margining, collaterals, clearing and settlement of OTC derivatives.
5. May you expand further on the progress made with the regulatory framework for central clearing in South Africa?
South Africa already has a robust clearing system for equities, bonds and listed derivatives, using current FMIs like the JSE, JSE Clear and Strate. This can obviously be enhanced to take advantage of latest technologies and international best practices.
The OTC derivates market is the one which currently does not have a Central Counterparty (CCP) to clear and settle transactions. We are engaging the market on how best to enable South African markets to centrally clear (and settle) OTC derivatives, noting also that the local market is small relative to offshore markets and is dominated by fixed income or interest-bearing OTC derivatives.
6. Even though you have been at the helm for a short period of time, are there any noteworthy milestones achieved since assuming leadership of the division?
It is indeed too early to talk about milestones in three months in a new and complex area like this one.
7. When it’s all said and done, what do you want your legacy to be within the Market Integrity environment?
I think the best legacies are best built by teams, organisations and not an individual. Individuals come and go, but organisations and their core teams endure for longer.
My role really is to get the best out of the team and ensure that we deliver on the organisation’s vision and objective of ensuring that South Africa’s markets continuously evolve and operate with integrity, are globally competitive and fair.
8. What’s one thing that most people don’t know about you?
I collect red wines. |
