On 20 November 2020, the Financial Sector Conduct Authority issued a draft Declaration of Crypto Assets as a Financial Product under the Financial Advisory and Intermediary Services Act 2002 (FAIS Act). The Declaration will be made in terms paragraph (h) of the definition of ‘financial product’ in the FAIS Act, which provides that a financial
Desiree Reddy (ZA)
Conduct of Financial Institutions
By Desiree Reddy (ZA) on
On 28 September 2020, National Treasury released the second draft Bill regulating the conduct of Financial Institutions, for comment.
The aim of the Bill is to impose conduct standards for financial institutions to protect financial customers.
The Bill is the second peak of the Twin Peaks model and will require market conduct that…
FSCA clamps down on FICA non-compliance
By Desiree Reddy (ZA) on
Financial services providers (FSPs) registered under the Financial Advisory and Intermediary Services Act 2002 fall within the ambit of ‘accountable institutions’ under the Financial Intelligence Centre Act 2001. As accountable institutions, these FSPs are obliged to comply with the FIC Act and are subject to oversight by the FSCA.
The FSCA has recently investigated compliance…
FSCA publishes the conduct standard for banks
By Desiree Reddy (ZA) & Amina Yuda on
When the Financial Sector Regulation Act (FSRA) was introduced in 2018, the FSCA was tasked with regulating and supervising the way banks conduct themselves in relation to the provision of financial products and services to customers.
In fulfilment of this mandate, the FSCA has published a conduct standard for banks. The conduct standard is supported…
POPI compliance – have you considered your existing data protection measures?
By Desiree Reddy (ZA) on
The majority of the Protection of Personal Information Act 2013 (POPI) effectively commenced on 1 July 2020. The sections that commenced deal with how personal information (which is any information that can identify and infringe the privacy rights of a natural or juristic person) may be processed in South Africa or transferred across borders.
As…
Financial Sector Laws Amendment Bill 2020 to go to Parliament
By Desiree Reddy (ZA) on
During a virtual meeting held on 10 June 2020, Cabinet approved the Financial Sector Laws Amendment Bill of 2020, for submission to Parliament. In the first step to formalising a resolution process for financially distressed banks, the Bill proposes to designate the SARB as the Resolution Authority, and enhances the SARB’s regulatory tools for discharging…
FSCA publishes two drafts: conduct standard and directive for securities exchanges
By Desiree Reddy (ZA) on
On 20 May 2020, the Financial Sector Conduct Authority (FSCA) published a draft Conduct Standard for Exchanges and a draft Directive for Exchanges.
Conduct Standard for Securities Exchanges
The main objective of the proposed conduct standard is to introduce requirements for the conduct of securities exchanges in response to increased competition in the South…
Dirty money and the rise of digital payments
By Desiree Reddy (ZA) on
Exchanging bank notes and coins are increasingly seen as risky business, as noted by Thomson Reuters in an article on the rise of digital money transactions.
The COVID-19 pandemic may speed up the global move towards digital-only payments. Apart from the more widespread use of payment apps, electronic funds transfers and cryptocurrencies, the idea…
Fintech innovation hub launched
By Desiree Reddy (ZA) on
The financial services regulators launched the Intergovernmental Fintech Working Group (IFWG) Innovation Hub on 7 April 2020 to respond to changes in the financial sector driven by fintech. The IFWG seeks to promote responsible innovation in the sector.
The Innovation Hub is intended to support the sector in introducing innovations that complement the core mandates…
FSCA relaxes reporting requirement in response to COVID-19
By Desiree Reddy (ZA) on
On 24 March 2020, in recognition of the impact of the current COVID-19 pandemic on the financial services industry, the FSCA released general communication 9 of 2020 which sets out relaxations of regulatory requirements.
In summary, the FSCA has granted:
Financial services providers
- A four month extension for the submission of some financial statements (not
…