The Financial Sector Conduct Authority’s (FSCA) 2025 Three-Year Regulation Plan (covering 1 April 2025 to 31 March 2028) is a strategic roadmap for shaping the regulatory landscape over the next three years. The Plan is a key strategic tool designed to support the FSCA in managing its ongoing legislative review and development of the regulatory framework as well as outlines critical changes, opportunities, and responsibilities that will directly impact business operations, compliance obligations, and strategic planning.
The FSCA remains committed to updating this plan annually to keep it current and responsive to industry needs and emerging risks. Over the past three years, the FSCA has made substantial progress in implementing key legislative reforms, including integrating crypto assets into the regulatory framework, enhancing cybersecurity standards, launching a framework for consumer financial education, and supporting the two-pot retirement system. In the last financial year (2024/2025), the FSCA finalised five standards, completed two notices/determinations, submitted three draft standards to National Treasury to facilitate tabling in Parliament, and published seven draft standards for public consultation.
The 2025-2028 Regulation Plan focuses on strategic regulatory interventions and reforms across three categories. There is a focus on strengthening the market conduct regulatory framework across the financial sector. This includes the development and implementation of conduct standards that promote fair treatment of financial customers. A key priority in this area is supporting the finalisation of the Conduct of Financial Institutions (COFI) Bill, which will establish a principles-based market conduct regime that drives consistent outcomes across the sector.
A further focus area is strengthening financial market efficiency and integrity. A key initiative in this area includes assisting the National Treasury in reviewing the Financial Markets Act and whilst, enhancing market efficiency and integrity through various regulatory framework interventions. There is an expectation for new rules and processes on market disclosures, execution practices, and governance.
Lastly, the Regulation Plan focuses on cross-cutting/sector-wide developments, which address a broad range of themes and systemic issues affecting the financial sector. These include open finance, artificial intelligence, sustainable finance, and operational resilience. As part of this focus area, the transition of prudential regulation of collective investment schemes, pension funds, and friendly societies to the Prudential Authority. The FSCA is also tackling operational risks, particularly around cloud computing, and preparing for South Africa’s transition from the Johannesburg Interbank Average Rate (JIBAR) interest rate benchmark to South Africa Rand Overnight Index Average (ZARONIA). Although the FSCA will not issue new rules for the JIBAR/ZARONIA transition, it will support National Treasury’s legislative efforts and may issue exemptions to ease the shift.
In general, the priorities identified last year remain the same, but certain changes to timelines were necessary, and certain new projects were included, this includes:
- The Financial Sector Conduct Authority (FSCA) is amending Conduct Standard 3 of 2018, which governs reporting obligations for over-the-counter (OTC) derivatives transactions.
- The Conduct Standard for credit rating agencies is being revised in light of the upcoming repeal of the Credit Ratings Services Act (CRSA) by the COFI Bill.
- The FSCA is updating and consolidating outdated and fragmented requirements for the liquidation of pension funds under the Pension Funds Act.
- On 14 March 2025, the South African Reserve Bank’s National Payment System Department released a draft directive proposing a new authorisation framework for payment service providers. This framework outlines broad compliance requirements and introduces rules on interest prohibitions, unclaimed funds, outsourcing, disclosures, and reporting. With the FSCA’s expanded jurisdiction under the Financial Sector Regulation Act, and in light of this directive, the FSCA will now proceed with implementing a conduct regulatory framework for payment services in collaboration with the NPSD.
The development of the Regulation Plan is driven by the FSCA’s commitment to align South Africa’s regulatory frameworks with international standards and the need to respond proactively to emerging risks and sector-specific vulnerabilities, while ensuring that regulatory frameworks remain fit for purpose in the South African context.