It is not just another piece of legislation in an industry already overburdened with legislation. It will reduce regulatory complexity and the necessity for petty rules and be an enabler for business.
This is the view of Richard Rattue, managing director of financial services compliance firm Compli-Serve, which recently hosted a seminar at which Kershia Singh, the director of market conduct at National Treasury, unpacked Cofi and its implications for financial services participants.
Singh explained that Cofi would provide the overarching legislation under which the Financial Sector Conduct Authority will regulate the market conduct of all financial institutions.
It has been designed eventually to replace existing laws (such as the Financial Advisory and Intermediary Services, or Fais, Act), but for the time being will exist beside them. Similar to legislation enacted overseas, it is grounded in a fundamentally different approach to law, being principles based instead of rules based, with the Treating Customers Fairly (TCF) principles at its heart.