President Jacob Zuma has signed into law the Financial Sector Regulation Act, 2017 (the Act). The legislation – also known as Twin Peaks – was passed by Parliament in June and sent to President Zuma for ratification.
The Presidency said in a statement issued on Monday that the Act aims to achieve a financial system that works in the interests of financial customers and supports balanced and sustainable economic growth in South Africa.
The Act establishes two new financial sector regulators, namely the Financial Sector Conduct Authority and the Prudential Authority. While the Prudential Authority (which will be operating within the administration of the Reserve Bank) will be responsible for regulating all financial institutions, the Financial Sector Conduct Authority (which will replace the current Financial Services Board) will be a new entity which will govern the conduct of financial institutions.
The Act further provides for co-operation and collaboration between the financial sector regulators, the National Credit Regulator, the Financial Intelligence Centre and the South African Reserve Bank.
It is not yet clear when the Act will come into effect, as this must still be determined by notice in the Gazette. ICS will keep you posted.
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