Draft Financial Sector Regulation Bill, 2013Call for comments opened 16 January 2014 Share this page:
NOTE: DEADLINE EXTENDED TO: Friday, 7 March 2014
The National Treasury invites public comments on the Draft Financial Sector Regulation Bill, 2013.
The Bill was approved for publication by Cabinet on 4 December 2013, and gives effect to an earlier Cabinet decision of 26 July 2011, to make the financial sector safer and better to serve South Africa.
The Bill mandates the South African Reserve Bank ("the SARB") to promote and maintain financial stability within an agreed policy framework, and approved the establishment of a Financial Stability Oversight Committee ("FSOC") to assist the SARB to maintain, protect and enhance financial stability. The Bill also gives effect to the shift towards a "twin peaks system" of regulating the financial sector, to protect customers more effectively, yet also ensure that financial institutions are financially sound. Twin peaks provides for two dedicated regulators: a Prudential Authority to ensure the soundness of financial institutions, and a Market Conduct Authority, to protect customers and ensure financial institutions treat them fairly.
The twin peak reforms must be seen as a comprehensive system, including:
●Strengthening of a financial stability and crisis resolution through the SARB and the FSOC;
●Establishing one market conduct regulator and one prudential regulator to regulate market conduct and soundness of the financial institutions respectively;
●Ensuring co-operation and co-ordination between regulators including in respect of granting, withdrawal, suspension or amendments of entitlements e.g. licenses;
●Establishing the council of financial Regulators to ensure co-operation between the twin peaks regulators and other regulators; and
●Putting in place a system for administration action, enforcement and appeals including Financial Services Tribunal
Comments on the Bill are invited from all interested stakeholders. Written comments should be sent to: CommentDraftLegislation@treasury.gov.za by no later than Friday, 7 March 2014.
Accompanying documents are available on the National Treasury website, http://www.treasury.gov.za/twinpeaks/.