The Financial Sector Conduct Authority (FSCA) released its’ 2025/26 Annual Integrated Report which provides an overview of the FSCA’s performance, activities and governance, for the 2025/26 financial year. Its six main material matters of the report are effective talent management, digital transformation, stakeholder needs, good governance and reputation, fair regulatory outcomes for financial customers, and funding. The report was prepared in accordance with Generally Recognised Accounting Practice (GRAP), the King V Report on Corporate Governance and the Public Finance Management Act (PFMA).
As South Africa’s market conduct and market integrity regulator, the FSCA’s role is to promote fair treatment of financial customers, improve financial literacy, support the efficiency and integrity of the financial system and contribute to financial stability. The FSCA regulates a wide range of financial institutions, including banks, insurers, retirement funds, FSPs, Crypto Asset Service Providers, collective investment schemes, credit rating agencies, administrators and financial market infrastructures. During the year, the FSCA continued using a risk-based supervisory approach, focusing its resources on areas where misconduct could cause significant harm to customers or financial markets.
During the 2025/26 financial year, the FSCA continued to strengthen financial regulation and improve financial outcomes for customers. It implemented its three-year rolling Regulation Plan and progressive regulatory reforms relating to collective investment schemes, retirement fund administration, financial market infrastructures and over-the-counter derivatives. The FSCA also continued preparing for the implementation of the Conduct of Financial Institutions (COFI) Bill. While some COFI-related targets could not be achieved due to the Bill not yet being enacted, the FSCA has continued to engage with stakeholders and prepare its regulatory and operational systems. Overall, the FSCA achieved 85% of its annual performance targets, reflecting significant progress despite the evolving regulatory environment.
Enforcement and supervision remained important areas of the FSCA’s focus, with 678 investigations finalised and the imposing of approximately R2.8 billion in penalties and fines. It also conducted 241 on-site inspections covering general market conduct, fit and proper requirements and anti-money laundering and counter-terrorist financing requirements. In addition, 140 scam warnings were issued, 46 cases were referred to law-enforcement agencies, 68 debarment orders were issued, and 14 licences were withdrawn. These actions were aimed at protecting financial customers, discouraging misconduct, and maintaining confidence in South Africa’s financial sector.
Financial education and consumer empowerment also remained key priorities. The initiatives were intended to help consumers make better-informed financial decisions and protect themselves against scams and financial misconduct. A key factor for FSP to consider when dealing with the public is to promote a culture of assisting consumers making better financial decisions.
The FSCA continued to promote a more inclusive, innovative and sustainable financial sector by strengthening its focus on sustainable finance, ESG practices and responsible investment, particularly in the retirement funds sector. It also enhanced its understanding and use of emerging technologies, including artificial intelligence, while developing its digital capabilities. The Integrated Regulatory System was developed to support more efficient and data-driven regulations. The FSCA recognised the risks associated with technology and AI, including cybersecurity, data protection and inconsistent decision-making, and planned additional measures to promote effective governance and responsible use. FSPs are urged to consider this when making business decisions and improvements.
From a financial perspective, FSCA revenue and expenditure increased. The increase in expenditure was linked to the impairment of penalty receivables and inflation-related increases. The FSCA recorded a net surplus of R119 million, compared with R204 million in the previous year. The FSCA collected approximately R1.1 billion in levies and maintained financial sustainability. It collected 94.82% of levies invoiced against a target of 98% because of delays in invoicing caused by the late approval of the budget.
Overall, the 2025/26 Integrated Report highlights the FSCA’s progress in supervision, enforcement, financial education, digital transformation and sustainable finance. The FSCA maintained a clean audit outcome and remains focused on protecting financial customers, strengthening market integrity, promoting financial inclusion and ensuring a fair, resilient and sustainable financial sector.
For more information, click here to read the FSCA’s press release.