The Financial Sector Conduct Authority’s (FSCA) latest newsletter provides insight into how the regulator is continuing its transition towards a future-fit, outcomes-focused supervisory approach. It highlights progress on regulatory reform, digital enablement and conduct regulation, offering useful signals for financial services providers (FSPs).
Here are five compliance takeaways FSPs should consider:
1. Supervision is becoming more data-driven and risk-based
The FSCA highlights continued progress on the rollout of its Integrated Regulatory System (IRS), supported by the development of the Omni-Risk Return (Omni-RR). Together, these initiatives are intended to strengthen more integrated, data-driven and risk-based supervision over time.
For FSPs, this underscores the growing importance of data quality, data governance and consistent reporting processes that can support evolving supervisory requirements.
2. Enforcement is being used to reinforce regulatory expectations
The FSCA reports sustained enforcement activity, including debarments, licence withdrawals and public warnings. These actions are framed as central to protecting consumers and reinforcing confidence and integrity in the financial system.
Enforcement outcomes continue to provide a practical indication of areas of heightened regulatory concern.
3. COFI readiness is already shaping how firms are assessed
Although the COFI Bill is not yet in force, the FSCA indicates that supervision is already being conducted through a conduct and outcomes lens. Governance, culture and the ability to demonstrate fair customer outcomes are receiving increased attention.
This signals that COFI readiness should be approached as an ongoing process rather than a future compliance exercise.
4. Digital and emerging risks remain a growing supervisory focus
The newsletter highlights emerging risks linked to finfluencers, social-media activity, crypto-assets and the use of artificial intelligence. While innovation is acknowledged, the FSCA continues to emphasise the need to manage associated risks to consumers and market integrity.
FSPs remain responsible for how products and services are marketed, including through digital platforms and third-party arrangements.
5. AML/CFT supervision remains a priority
The newsletter confirms intensified AML/CFT supervision and enforcement, linking this work to broader efforts that supported South Africa’s removal from the FATF greylist. A practical, risk-based approach remains central to AML/CFT expectations.
Masthead can help
If you need assistance with your compliance obligations or are unsure how new regulations may impact your operations, we’re here to help. Contact your nearest regional office or get in touch with us for support.