This blog is co-authored by Anathi Xaba, a candidate attorney.

The FSCA publishes a regulatory strategy to outline its objectives, priorities, and intended outcomes for the next three years. This strategy provides guidance on how the FSCA intends to fulfil its regulatory and supervisory functions under the Financial Sector Regulation Act, 2017 (FSR Act), ensuring transparency and accountability. The strategy also helps the financial sector understand the FSCA’s approach to policy development, regulation, and supervision, and to prepare for upcoming legislative changes and regulatory developments.

Here are six key takeaways from the 2025–2028 strategy:

1 Preparing for the Conduct of Financial Institutions (COFI) Bill.

The FSCA is working to create a streamlined, robust regulatory framework aligned with the Bill’s principles. This includes refining, licensing and supervisory approaches and preparing to regulate new activities that will fall within its jurisdiction once the Bill takes effect. Implementation is not expected for at least three years. The Bill itself has not yet been published for comment.

2 Expanding regulatory jurisdiction.

The FSCA’s regulatory oversight will expand to include new areas of regulation. This includes bringing the regulation and supervision of activities such as payment services, services related to credit (including debt collection), services related to foreign exchange and medical schemes under the FSCA’s conduct framework.

3 Transition of prudential functions to the Prudential Authority.

In line with the FSR Act’s transitional arrangements, the prudential regulation and supervision functions for retirement funds, collective investment schemes, and friendly societies will move to the Prudential Authority. This transition is set to take effect by 31 March 2026, with medical schemes following by 31 March 2027. To facilitate this process, the FSCA and Prudential Authority have established a joint working group that will develop detailed roadmaps outlining the steps for an orderly transition.

4 Implementing the Integrated Regulatory System (IRS).

The IRS will modernise the FSCA’s regulatory capabilities through improved data analysis and automation. One of its core features is the automated Risk Model designed to strengthen the FSCA’s risk-based approach by identifying high-risk entities and priority areas at both the entity and sector levels. This development reinforces the FSCA’s commitment to holding non-compliant entities accountable through decisive regulatory action. This was clearly reflected in the 2023/24 period, which saw administrative penalties escalate to R943 million, accompanied by increased enforcement activity and public warnings.

5 Supporting financial market reforms.

The FSCA will continue to work with National Treasury on reviewing the Financial Markets Act (FMA). This includes advancing the central clearing framework, a critical initiative to enhance market integrity, transparency, and systemic stability.

6 Enhancing international cooperation.

The FSCA has entered into MoUs with several foreign regulators to facilitate information sharing, collaboration on investigations and enforcement actions, and alignment of regulatory practices to address global regulatory challenges. Through its international and regional engagements, the FSCA will contribute to global financial sector developments. In this regard, the FSCA will support the National Treasury and the South African Reserve Bank during South Africa’s G20 presidency in 2025 with engagements on key financial sector issues, the G20 Finance Track, and the Global Partnership for Financial Inclusion (GPFI).