South Africa: introducing the twin peaks financial regulatory framework - an update

The National Treasury has provided an update on the introduction of the twin peaks financial regulatory framework: see here (pdf). Legislation - the Financial Sector Regulation Bill (here, pdf) - is already before Parliament (its progress can be followed here). Revisions are proposed and are shown in an annotated copy of the Bill available here (pdf). An impact study has also been published: see here (pdf). Regulations concerning the over-the-counter derivatives market have also been published: see here. Further background information is available here.

South Africa: introducing 'twin peaks' - the Financial Sector Regulation Bill

The legislation that will introduce the twin peaks financial regulatory framework in South Africa has been introduced in Parliament. A copy of the Bill - the Financial Sector Regulation Bill - is available here (pdf) and its progress can be followed here. Further background information is available here.

South Africa: introducing a 'twin peaks' model of financial regulation - consultation on draft legislation

The National Treasury has published for consultation draft legislation - the Financial Sector Regulation Bill 2013 - as part of its introduction of a twin peaks model of financial regulation, including the creation of new authorities (the Prudential Authority and the Market Conduct Authority): see here (pdf). Further background information is available here.

South Africa: introducing twin peaks financial regulation

In 2011 the National Treasury published a policy document titled A safer financial sector to serve South Africa better in which the adoption of a twin peaks model of financial regulation was proposed: see here (pdf). The Financial Regulatory Reform Steering Committee - comprising senior officials from the South African Reserve Bank, Financial Services Board and National Treasury - was subsequently formed and last Friday published proposals outlining how the implementation of a twin peaks regulatory structure is to be achieved: see here (pdf).

South Africa: publication of the Financial Services Laws General Amendment Bill

The National Treasury has published a copy of the Financial Services Laws General Amendment Bill: see here (pdf). An explanatory memorandum is available here (pdf). The Bill was tabled in Parliament at the end of last month. A Treasury press release, which provides an overview of the Bill's purpose, is available here (pdf). The Bill addresses some of the weaknesses in the financial regulatory framework identified in the Treasury's policy paper A safer financial sector to serve South Africa better, published last year (see here, pdf). It does not, however, provide for the move to a twin peaks model of financial regulation: legislative proposals in this respect are expected next year.

Staying with theme of financial regulation in South Africa it is worth noting that the National Treasury, in conjunction with the Financial Services Board, has recently published for consultation a proposed framework for the regulation of hedge funds in South Africa: see here (pdf).

UK: FSA business plan for 2012/13 published

The Financial Services Authority has published its business plan for 2012/13, the last that it will publish before the new regulatory framework is introduced in (it is anticipated) the first half of 2013: see here (pdf). The plan provides a useful overview of how the twin peaks approach to supervision will operate within the FSA prior to the creation of the new regulatory authorities. This overview (on page 14) makes clear that both supervisory groups will be concerned with firms' board and governance processes.

UK: financial regulation reform - update from FSA chief executive

Hector Sants, the chief executive of the Financial Services Authority, delivered a speech today in which he explained the operation of the twin peaks model of regulation, which the FSA will be adopting from 2 April 2012: see here. Mr Sants also explained the further work the FSA will be undertaking in preparation for the dismantling of the FSA and the creation of the Prudential Regulation Authority and Financial Conduct Authority.