FSCA’s three-year strategy
The Financial Sector Conduct Authority FSCA recently transitioned from a compliance driven entity to a proactive, risk-based and outcomes-focused market conduct regulator.
According to the FSCA Bulletin outlines the entity’s three-year Regulatory Strategy.
Abel Sithole, FSCA Commissioner, says the widened scope of the FSCA mandate means it now has oversight over retail banks and credit providers, a move that enables the FSCA to serve the industry and country “even better, with the ultimate vision of ensuring that the financial sector is efficient, and customers are informed and treated fairly”.
The priority areas of the FSCA over the next three years are:
- Building a new organisation
- An inclusive and transformed financial sector
- A robust regulatory framework that promotes fair customer treatment
- Informed financial customers
- Strengthening the efficiency and integrity of our financial markets
- Understanding new ways of doing business and disruptive technologies
The strategy also outlines the FSCA’s new regulatory areas, such as:
- Banking products and services
- Payment services
- Services in relation to credit, including debt collection
- Services related to the buying and selling of foreign exchange
- Medical schemes
- Supervising financial groups and conglomerates and significant owners
One of the significant new functions of the FSCA will be its regulatory oversight over banking products and services. In the past the FSCA’s oversight only extended to supervising banks in their capacity as financial services providers under the Financial Advisory and Intermediary Services Act, 32 of 2002 (FAIS Act); the provision of tax-free investment products; and (to a certain degree) the relationship between banking and non-banking products and services within existing bancassurance.
Rolling out the new supervisory framework will be a gradual process. “For the FSCA to meaningfully supervise the conduct of banks, it will require an enforceable market conduct regulatory framework against which it can measure the conduct of financial institutions. This will be done through the Conduct of Financial Institutions Bill (COFI) Bill,” according to the FSCA Bulletin.
Click here for a breakdown in the FSCA Bulletin of the key differences between the FSB and the FSCA.
*source: FSCA Bulletin