It is unfortunate that the name Twin Peaks has stuck for the new regulatory regime for financial services. It may be catchy, reflecting a cult TV series from the 1990s, even though that programme was highly confusing and nobody could agree on the outcome. The two peaks are the new Prudential Authority (PA) and the Financial Sector Conduct Authority (FSCA), formerly known as the Financial Services Board (FSB). Treasury admits SA’s regulatory framework looks more like a mountain, two peaks and several foothills. The mountain is the SA Reserve Bank, which has not delegated its responsibility for "macro-stability". The foothills include the National Credit Regulator and the Financial Intelligence Centre, which remain separate. There is also a new co-ordinating body, the Financial Sector Oversight Committee, and it can’t be long before this gets its own well-paid CEO and staff. The two peaks still have to work out a memorandum of understanding before they can jointly grant new licences t...

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