Banks face hefty fees from Twin Peaks
Consumers would absorb cost of levies, says DA as banks face hefty fees in Twin Peaks financial regulation bill
The big four banks could each be forced to pay more than R60m a year in fees to regulators if a draft levies bill, published under the Financial Sector Regulation Bill, is adopted in its current form. Excessive regulatory costs would be passed on to consumers and compromise financial inclusion, said David Maynier, the DA shadow minister of finance. The DA had opposed the bill, also known as Twin Peaks, in the National Assembly over the uncertainty concerning costs, Maynier said. It had also taken issue with the fact that the National Credit Regulator did not fall under the Financial Sector Conduct Authority. "Twin Peaks creates one peak and one molehill," Maynier said, referring to the Prudential Authority and the conduct authority respectively. Under Twin Peaks, the Prudential Authority will be formed from the Reserve Bank’s bank supervision department and will regulate the soundness of financial institutions, including banks and insurers. The Financial Services Board will become t...