PRETORIA - President Jacob Zuma has signed into law the Financial Sector Regulation Act, 2017.
The Financial Sector Regulation Act intends to achieve a financial system that is in the interest of financial customers, supports balanced and sustainable economic growth in the Republic, by establishing, in conjunction with other financial sector laws, a regulatory and supervisory framework that promotes the following:
a) Financial stability
b) The safety and soundness of financial institutions
c) The fair treatment and protection of financial customers
d) The efficiency and integrity of the financial system
e) The prevention of financial crime
f) Financial inclusion
g) Transformation of the financial sector
h) Confidence in the financial system
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The above-mentioned Act also creates two new financial sector regulators, namely: the Financial Sector Conduct Authority and the Prudential Authority with jurisdiction over all financial institutions, and to provide them with a range of supervisory tools to fulfill their objectives.
In addition, the Act ensures that there are cooperation and collaboration between the financial sector regulators, the National Credit Regulator, the Financial Intelligence Centre and the South African Reserve Bank.
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