The “Twin Peaks” model of financial sector regulation creates - under the South African Reserve Bank - the “Prudential Authority”.
The “Prudential Authority” must uphold the reliability of regulated financial institutions.
The Financial Sector Conduct Authority will be tasked with protecting customers through its oversight.
Structures will be in place to ensure co-ordination between the two authorities and other regulators.
The Financial Services Board (FSB) will change into the Financial Sector Conduct Authority and will act as a dedicated market conduct regulator.
The Money Show’s Bruce Whitfield interviewed Cas Coovadia, MD of the Banking Association.
Coovadia discussed “Twin Peaks” and the implementation thereof.
Scroll down for quotes from the audio below.
To have separate regulators at the prudential level doesn’t allow the regulators a full view.— Cas Coovadia, MD of the Banking Association
Better coordination will make financial institutions more efficient while making the financial sector more secure.— Cas Coovadia, MD of the Banking Association
This boils down to ensuring that financial services providers act responsibly.— Cas Coovadia, MD of the Banking Association