Feeling perplexed about the upcoming Conduct of Financial Institutions (COFI) Bill? Not sure how this pivotal legislation will impact your business? We’ve got you covered! Our new Decoding COFI article series is designed to keep our newsletter readers well-informed and ready for the changes this legislation will bring to the financial sector.
Created to keep you informed and knowledgeable on how to navigate the COFl Bill with confidence; our Decoding COFI articles will cover comments and interviews from financial, compliance and regulatory industry specialists with the aim to equip you with the understanding needed to stay updated on this regulatory shift.
Articles
2026
COFI Bill Transition – What it Means for FAIS
After being approved by Cabinet earlier this year, the Conduct of Financial Institutions (COFI) Bill is well on its way to becoming law. But what will happen to the Financial Advisory and Intermediary Services (FAIS) Act when that happens? We look at what lives on in COFI – and the key departures, including areas such as activity-based licensing – and how Financial Services Providers (FSPs) can prepare.
Read full article here
COFI Licensing: What Financial Institutions Need to Know Now.
COFI will bring significant changes to the way financial institutions are licensed, moving towards an activity-based framework. Here’s what financial institutions need to know about the proposed changes, what they could mean for existing licences and why understanding your activities now is key to a smoother transition.
Read full article here
Will COFI Force IFAs to Consolidate? Separating Myth from Reality
There is a perception that independent financial advisors (IFAs) will need to merge with larger institutions to survive under the proposed Conduct of Financial Institutions (COFI) Bill. However, a closer look at the Bill and the Financial Sector Conduct Authority’s (FSCA) roadmap tells a different story. Independence remains viable – provided advisors prepare appropriately.
Read full article here
COFI and Omni-RR: Why IFAs Aren’t Going Anywhere
Regulation is changing – but independent advice isn’t going anywhere. Here’s what COFI and Omni-RR really mean for IFAs.
For many independent financial advisors (IFAs), the regulatory changes introduced through the Conduct of Financial Institutions (COFI) Bill and the revised Omni-Risk Return (Omni-RR) may feel daunting. But when we look closely at these frameworks a far more encouraging picture emerges.
Read full article here
UMAs and COFI – Strengthening Compliance
Regulation is changing – but independent advice isn’t going anywhere. Here’s what COFI and Omni-RR really mean for IFAs.
For many independent financial advisors (IFAs), the regulatory changes introduced through the Conduct of Financial Institutions (COFI) Bill and the revised Omni-Risk Return (Omni-RR) may feel daunting. But when we look closely at these frameworks a far more encouraging picture emerges.
Read full article here
2025
A Closer Look at the FSCA’s New Omni-Risk Return
The Financial Sector Conduct Authority (FSCA) has released its Explanatory Guide to the Omni-Risk Return, which explains what data financial institutions will need to provide and how this new return fits into the FSCA’s broader Integrated Regulatory Solution (IRS).
Read full article here
FSCA Releases Revised Omni-Risk Return
The Financial Sector Conduct Authority (FSCA) has published its revised Omni-Risk Return and explanatory note, initiating an industry consultation process to gather input from financial institutions. Here’s what financial service providers (FSPs) and other institutions need to know about the potential impact – and how they can prepare.
The FSCA has outlined its revised Omni-Risk Return and explained how it will form part of a broader supervisory risk model under the Integrated Regulatory Solution (IRS). The explanatory note has been published to guide industry input during the consultation phase.
Read full article here
FSCA Shifts Gears on Omni-CBR Rollout
The Financial Sector Conduct Authority (FSCA) has released a key update: the rollout of the Conduct of Business Return (Omni-CBR) is changing direction. According to a communication issued yesterday, the Omni-CBR will no longer proceed as originally planned.
Read full article here
COFI, TCF and Succession - How Sole Proprietors Can Plan for the Future
With the Conduct of Financial Institutions (COFI) Bill set to reshape the financial services industry, sole proprietor Financial Services Providers (FSPs) may want to reconsider their business structure. This article explores how converting to a private company, such as a (Pty) Ltd, could offer both regulatory and operational benefits under COFI.
The draft versions of the Conduct of Financial Institutions (COFI) Bill point to a substantial transformation of South Africa’s financial regulatory framework. COFI seeks to promote financial inclusion and embed Treating Customers Fairly (TCF) principles into enforceable law, introducing meaningful changes in licensing, governance and consumer protection.
Read full article here
Outcomes-based regulation - How ready is your staff?
You’ve reviewed your systems and processes to ensure your FSP complies with the proposed outcomes-based regulations and Omni-CBR (Omni-Conduct of Business Return) data requirements – but is your staff prepared for the impact of these upcoming changes?
This article explores the importance of staff training and why it’s crucial for employees to understand how their roles contribute to the FSP’s success in a conduct-focused regulatory environment. Additionally, we provide tips on equipping your employees with the skills and knowledge they need to confidently navigate the upcoming regulatory changes.
Read full article here
What FSPs can learn from the insurance industry
While the Conduct of Financial Institutions (COFI) Bill and Omni-RR (Omni-Risk Return) will revolutionise the financial services sector once it becomes effective, it’s not the first time an industry has had to adapt to significant regulatory changes.
In the past several years, the insurance sector underwent similar changes with the enactment of the Insurance Act 18 of 2017 and the Policyholder Protection Rules (PPR) and the implementation of a Conduct of Risk Return (RR) for insurance product providers. As is expected with COFI and Omni-RR, these regulatory changes in the insurance industry put Treating Customers Fairly (TCF) at the forefront, requiring insurance providers to record and report data in CBR format to demonstrate customer outcomes.
By analysing the recently released Insurance Ombudsman 2023 Annual Report, focusing on the Ombudsman for Short-term Insurance’s (OSTI) findings, we can extract valuable lessons for FSPs on TCF and how the regulator will use data to identify trends based on outcomes in the industry.
Read full article here
Key insights from our recent audits
In anticipation of the Conduct of Financial Institutions (COFI) Bill and Conduct of Risk Return (Omni-RR) reporting, we have intensified our focus on Treating Customers Fairly (TCF) outcomes in our financial service provider (FSP) audits since last year.
While our clients are making significant progress in preparing for the new legislation and outcomes-based reporting, our audits have revealed common challenges and areas of uncertainty that FSPs continue to face.
Read full article here
Omni-CBR 101 - What FSPs should know
The Omni-Conduct of Business Return (CBR), the new off-site monitoring tool being introduced by the Financial Sector Conduct Authority (FSCA), will transform the way Financial Service Providers (FSPs) report and comply with regulatory standards.
This article delves into the essentials of Omni-CBR, its implications for FSPs and how advancing Treating Customers Fairly (TCF) in the financial services industry is at the heart of its purpose.
Read full article here
Helping our members prepare
Ensuring a smooth transition to the Conduct of Financial Institutions (COFI) Bill hinges on preparation. Here is how we’ve been helping our members navigate the forthcoming regulatory changes.
Read full article here
Navigating the new licensing landscape
A pivotal change anticipated with COFI is the comprehensive revamp of the licensing requirements for financial institutions. This article delves into these changes and offers valuable insights for financial service providers (FSPs) to prepare for this transformation.
Amid the many facets of COFI that will reshape the financial industry, a big focus is the new licensing framework, which is a substantial departure from the existing system.
Read full article here
Giving Teeth to TCF
Although still in its second draft, the COFI Bill is unlikely to change its approach to TCF, and this allows financial service providers (FSPs) to prepare proactively for COFI implementation.
Presently, various regulations cover TCF principles to different degrees, with some, like the Policyholder Protection Rules (PPRs) for insurers, incorporating more comprehensive requirements than others. This variance results in gaps and differing interpretations of these principles across various role-players.
Read full article here
Guiding you through the regulatory shift
The scope of COFI is broad, touching various facets of the financial industry. Yet, at its core, its primary goal is to enhance customer outcomes by formalising the Treating Customers Fairly (TCF) principles within the regulatory framework. In so doing, COFI hopes to guide advisor behaviour and outcomes for clients, fostering a financial environment centred on prioritising customer wellbeing and satisfaction.
Read full article here
