NATIONAL NEWS - Finance Minister Nhlanhla Nene’s has set in motion processes to disband the Financial Services Board (FSB) as well as unbundling the banking supervision department away from the Reserve Bank.

The FSB will be replaced by a new body called the Financial Sector Conduct Authority (FSCA), while the banking supervision department will be located within a new regulator called the Prudential Authority (PA).

Dubbed the ‘Twin Peaks regulatory system’, the model was approved by Cabinet in 2011, and it aims “to create a safer financial sectors that works effectively in the interests of all South Africans, by reducing potential threats to the financial system and providing better protection to financial customers”.

In a statement released by Treasury, it was announced that FSCA, FSB’s replacement, will “supervise how financial institutions conduct their business and treat customers”.

The new body is also tasked with “improving customer protection in the financial sector, and driving better customer outcomes, ensuring that the sector serves South Africans best”.

Read more on the Caxton publication, The Citizen.

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