Draft FSCA Strategy For Promoting Financial Sector Transformation
The Financial Sector Conduct Authority (FSCA) recently published its draft strategy for promoting transformation of the financial sector in South Africa for public comment and engagement. A strategic objective of the FSCA is to promote the development of an innovative, inclusive, and sustainable financial system – which includes supporting the transformation of the financial sector.
The draft transformation strategy aims to:
- outline the FSCA’s approach to promoting financial sector transformation within current regulatory frameworks such as the Financial Sector Regulation Act, Broad-Based Black Economic Empowerment Act, and the Financial Sector Code; and
- outline an approach for the FSCA to promote transformation under the future COFI Act framework.
The above proposals will strengthen the overall framework for transformation in the financial sector, by mandating the FSCA to exercise reasonable supervisory and enforcement measures against financial institutions that do not uphold commitments to transformation.
Interested parties are invited to provide commentary and input on the draft transformation strategy to the FSCA on fsca.policy@fsca.co.za using the Comments Template (Annexure B) by no later than 29 April 2022.
Feedback received will inform the finalisation and implementation of the strategy.
Keep a lookout for the next issue of Mastering Compliance where we will unpack the Draft FSCA Strategy For Promoting Financial Sector Transformation, in more detail.
Financial Inclusion Strategy
The FSCA also confirmed that its financial inclusion strategy has been published and stated that financial sector transformation and financial inclusion are mutually supportive objectives. Accordingly, the financial inclusion strategy can be read in conjunction with the draft transformation strategy.
Read the FSCA’s Press Release: Release of FSCA Draft Financial Sector Transformation Strategy for public comment