Summary of the 2023 FSCA 3-Year Regulation Plan – 2022/2023 review of the Regulation Plan
The ongoing review of the Financial Sector Conduct Authority (FSCA) regulatory framework is importance to ensure that the industry remains robust and aligned with international standards.
The FSCA’s 3-year Regulation Plan was first published on 30 June 2022 (2022 Regulation Plan) and is used as a tool to review and develop the regulatory framework falling within their scope in a concentrated manner.
The 2023 review of the Regulation Plan took into account the following:
- The success rate of the deliverables which were set for the period 1 April 2022 to 31 March 2023 in the 2022 Regulation Plan;
- Whether the priorities as reflected in the 2022 Regulation Plan are still applicable. Changes to the deliverables and timelines, where necessary, were made;
- Extending deliverables and timelines in relation to existing projects into the 2025/2026 business year; and
- Whether there is a need for new initiatives of strategic importance that should be introduced to the Regulation Plan as well as the deliverables and timelines.
Achievement of deliverables in the regulation plan for the year 2022/2023
There were a number of notable achievements which were achieved and saw the finalisation of five regulatory instruments and the publication for public consultation to National Treasury of eleven draft regulations which include the “Declaration of crypto assets as a financial product” under the Financial Advisory and Intermediary Services Act, which is a significant step in mitigating emerging risks prevalent in the crypt asset environment.
2023 Regulation Plan (April 2023 – March 2026)
The new projects added to the Regulation Plan include the following:
- Draft (interim) amendments to Board Notice 90 of 2014;
- Amendments to Board Notice 257 of 2013;
- Prudential Standard – Regulation 28 quarterly reporting requirements for pension funds.
The progression of the work to develop a new conduct regulatory framework under the Conduct of Financial Institutions Bill will be the main objective over the next three years.
The FSCA’s commitment to developing the regulatory framework aims to ensure it is robust, promotes the fair treatment of financial customers and the efficiency and integrity of financial markets, is aligned to international standards, while remaining fit for purpose considering the domestic context.
