Regulation: Foothills, two peaks, and a mountain
The new regulatory framework can be almost as confusing as the cult TV series of the 1990s
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...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.