On 17 April 2026, National Treasury formally introduced the Conduct of Financial Institutions Bill, 2026 (COFI) in Parliament.
Under the Rules of the National Assembly, a Bill may only be introduced once prior notice has been published in the Government Gazette together with either an explanatory summary or the draft Bill itself. In line with these rules, an explanatory summary of the COFI Bill 2026 has been published. The full Bill is not yet publicly available. The explanatory summary is broadly consistent with earlier versions of the COFI proposals that industry has been engaging with over the past few years.
COFI recap
The main goal of COFI is to bring all conduct related requirements for financial institutions into one clear and consistent framework. Currently, conduct requirements are spread across different laws and sector specific rules. COFI aims to replace this fragmented approach with a single, principles based system covering most financial institutions and activities.
COFI aims to ensure that customers are treated fairly, risks are managed properly, and organisations are held accountable for their behaviour. COFI is intended to result in clearer information, stronger protections, better governance, and more consistent treatment across the financial sector.
COFI will apply broadly to licensed financial institutions, their representatives, and key individuals across the financial sector. This includes entities providing financial products and services to retail customers and small businesses. Boards, directors, and key persons will have clear responsibilities under the new framework, including meeting fitness and propriety standards.
Overview of the Bill
The explanatory summary highlights several important areas:
- Governance and accountability – Governing bodies will have strong obligations to oversee conduct, compliance, and customer outcomes.
- Fair treatment of customers – Firms will need to follow clear principles for advertising, disclosure, product design, and handling client money or trust property.
- Representatives and debarment – COFI will regulate how representatives are appointed, managed, and, where necessary, debarred.
- Compliance arrangements – Financial institutions must have appropriate systems and controls in place to comply with conduct requirements.
- Transformation – Institutions subject to the B BBEE Act will be required to have and implement transformation plans.
- FSCA powers – The Financial Sector Conduct Authority (FSCA) will be able to issue conduct standards and enforce compliance more consistently across the sector.
What happens next?
COFI has been introduced to the National Assembly, where it will go through the legislative process, including possible public comment and parliamentary debate. It is therefore not in force yet, but organisations should begin understanding the direction of travel.
Masthead has been closely following developments relating to the Bill since it was first announced – and will continue to support clients as the regulatory framework takes shape. For more information on COFI and how we are helping clients prepare for these changes, have a look at our Decoding COFI series. There, you will find articles offering greater insight into COFI and how it could impact your business.