NEW LAW IMPLEMENTED
‘Twin Peaks’ will reshape role of Financial Services Board
The Financial Sector Regulation Act will introduce a prudential authority to regulate the safety and soundness of financial institutions
Finance Minister Malusi Gigaba has started implementing the newly gazetted "Twin Peaks" act, releasing draft regulations which will shake up the top layer of the Financial Services Board (FSB), which is changing its name to the Financial Sector Conduct Authority under the new law. The Financial Sector Regulation Act will introduce a prudential authority — housed within the Reserve Bank — to regulate the safety and soundness of financial institutions; and convert the FSB’s role to that of market conduct watchdog shielding consumers from abuse by providers of financial products and services. The board, led by executive officer Dube Tshidi, has five deputy executive officers for collective investment schemes, investment institutions, financial advisory and intermediary services, insurance, and retirement funds. Under the new act, they will be replaced by a commissioner and between two and four deputy commissioners, who will conduct the daily management and administration of the conduct...