Johannesburg - The international Financial Stability Board
(FSB) has welcomed SA’s planned reforms and agrees that a shift to a twin peaks
model provides a good opportunity for SA to streamline responsibilities and
elevate the importance of market conduct regulation.
The FSB is chaired by Mark Carney‚ Governor of the Bank of
Canada and soon to be Governor of the Bank of England. Its secretariat is
located in Basel‚ Switzerland‚ and hosted by the Bank for International
A twin peaks regulatory structure involves separate
prudential and market conduct regulators.
The peer review of SA was the seventh country peer review
conducted by the FSB and the first using the revised objectives and guidelines
for the conduct of peer reviews set forth in the December 2011 Handbook for FSB
The UK‚ US‚ Indonesia and Germany would undergo peer reviews
The Financial Regulatory Reform Steering Committee of the
National Treasury‚ South African Reserve Bank and Financial Services Board‚
released proposals on Friday that will take regulatory reform closer to
completion‚ with legislation to be tabled to parliament in 2013/14.
During this first phase in 2013/14‚ changes will be made to
ensure regulators can deliver on their revised mandates and will also entail
integrating FSB staff into the central bank.
The second phase is to be implemented over the medium term
and this will entail harmonising financial sector legislative‚ regulatory and
supervisory systems and frameworks.
The FSB said the introduction of a new regulatory structure
will require careful planning because SA is simultaneously tightening rules for
regulated firms and expanding the perimeter of regulation to comply with new
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