The Financial Sector Conduct Authority (FSCA) has published its Regulation Plan for the next three years (2022 – 2025).  

The plan can be categorised according to three broad focus areas: 

1. Regulatory framework developments focused on conduct: 

A significant focus area for the FSCA is the development of a holistic, cross-sector, robust and customer-focused regulatory framework, to be given effect under the Conduct of Financial Institution (CoFI) Bill. 

In addition, this focus area will look at industry specific developments, including but not limited to, certain amendments to the General Code of Conduct for Authorised Financial Services Providers and their Representatives and a final decision relating to the draft Declaration of crypto assets as a financial product under the Financial Advisory and Intermediary Services Act (FAIS Act) will be taken. 

2. Regulatory framework developments focused on the financial markets (integrity and efficiency): 

Under this focus area, the FSCA will focus on the implementation of the Joint Roadmap for Development of a Regulatory Framework for Central Clearing in South Africa that was published in February 2022.

Linked to this work are amendments to Joint Standard 2 of 2020 (Margin Requirements for non-centrally cleared OTC derivative transactions) to facilitate, amongst other things, regulatory reporting.  

Further focus areas will include the finalization of a regulatory framework for the provision of benchmarks; finalizing the Conduct Standard for Exchanges to adequately address the consequences of market fragmentation due to competition between exchange and the Joint Standard relating to recovery plans for market infrastructures, together with a Joint Guidance Notice containing the recommended Recovery Tools for market infrastructures. 

3. Regulatory framework developments focused on a broad scope of cross-cutting sector developments and themes: 

Under this focus area, the FSCA will focus on cross-cutting-sector developments and themes that include, amongst others, the Joint Standard on Culture and Governance; the Joint Standard on Information Technology, governance and risk management; the Joint Standard on Cyber security and cyber resilience requirements and more.  

To read the FSCA’s Regulation Plan (2022 – 2025) click here.