The Financial Sector Conduct Authority (FSCA) is a dedicated market conduct regulator for South Africa, responsible for regulating the conduct of financial institutions and ensuring that the financial sector operates fairly, efficiently, and transparently.
The FSCA was created as an authority established by the Financial Sector Regulation Act (FSR Act) and is part of South Africa's Twin Peaks regulatory framework.
The FSCA has the power to regulate financial institutions that offer financial products and services subject to sector-specific legislation, including banks, insurers, retirement funds, administrators, and market infrastructures.
Vision And Mission Statements
The FSCA's vision is as follows:
"to develop a fair, efficient and resilient financial system that promotes inclusive and sustainable economic growth in South Africa."
The FSCA exists to develop an inclusive, customer-centric, and competitive financial environment by:
• Ensuring financial customers have access to innovative, appropriate products and services, and are empowered to make informed financial decisions.
• Ensuring the financial markets are fair, effective, and efficient in developing and maintaining trust in the system.
• Ensuring regulatory, supervisory, and enforcement provisions are proactive and responsive and can hold financial institutions accountable for their conduct and promote ethical behavior.
Strategic Outcomes
To achieve its mandate, the FSCA has listed several strategic outcomes it will concentrate on:
• We will improve Industry Practices – drive the conversation and the positive change so that those financial institutions (e.g., insurers, banks, etc.) deliver fair outcomes to their customers.
• We will help Harmonise Regulatory Frameworks• Enhancing Social Responsibility – The FSCA is making a move towards responsiveness and responsibility, aiming to improve current practices in the operation.
• Enhancing the Ability of Small Businesses and Households – Increasing financial literacy changes the resilience of both consumers and small businesses.
• Enabling New innovative and Inclusive – We want to enable the evolution of a sustainable and inclusive financial system that can adapt to changes in market need.
• Taking Action against Wrongdoing - A firm stance is needed to show that we are addressing wrongdoing or unethical behaviour, making sure there is confidence and the integrity of the South African financial markets.
Mandate and Scope of Regulation
The FSCA's mandate is broad, having the regulatory umbrella for,
• Banks and Insurers - so supervising institutions to make sure they are complying with the financial sector laws, and their dealings with customers are fair
• Retirement Funds and the individuals to contribute to them – Monitor the operation of these funds to safeguard members' savings and fund sustainability.
• Providers of financial products and services - So we supervise the firms that do the work of providing investment, insurance, credit, and other related services to make sure these activities are being done transparently and with trust in the process.
• Market Infrastructures - So we can oversee the trading platforms and additional services that allow the market to operate effectively, securely, and efficiently.
The FSCA does its work by safeguarding customers, regulating market materials, and enabling where we can, where we want to, or where we can.
At the same time, ensuring firms take accountability for the conduct they abide by.
Core Values
The FSCA commits to core organisational values that ultimately drive how we act:
• Excellence – We consistently deliver service to the highest professional standards in all our regulatory activities, striving for quality in everything we do.
• Integrity and Accountability - We will manage ourselves with integrity, honesty, transparency, and consistency in everything we do and will take accountability for our actions and decisions.
• Collaboration – We will work towards a collaborative workplace built on mutual respect and trust amongst each other and stakeholders alike.
• Agility – We will be agile in our response to a changing market structure, changing circumstances, and new and emerging risks.
• Sustainability - We will value sustainability and actively support those who have responsible conduct linking the needs of today with the needs of future generations.
Consumer Protection and Financial Literacy
One of the key areas of focus for the FSCA is to enhance the financial literacy of customers through education, awareness, and empowerment.
By producing resources and promoting financial literacy, we can empower individuals and businesses to make informed decisions about the products and services they use.
The FSCA is also responsible for ensuring that customers are treated fairly in accordance with the principles of transparency, operating in good faith, and integrity throughout the engagement process with clients.
