No data available for the deliverable: Enact COFI Bill to harmonise market regulation
No data available for the deliverable: Enact COFI Bill to harmonise market regulation
No data available for the deliverable: Enact COFI Bill to harmonise market regulation
No data available for the deliverable: Enact COFI Bill to harmonise market regulation
No data available for the deliverable: Enact COFI Bill to harmonise market regulation
Summary
The COFI Bill replaces a patchwork of legacy laws with a single, comprehensive framework for market conduct, aligning South Africa with global “Twin Peaks” standards and enhancing regulatory clarity.
View DetailsIs it working?
The reform is nearing completion, with broad industry support and strong government commitment. The main remaining step is parliamentary approval, after which the FSCA will oversee phased implementation. The COFI Bill is expected to be enacted in late 2025, after which it will fundamentally reshape the market conduct landscape.
Actions
Public consultations have concluded and the FSCA is running industry readiness programmes. The phased implementation plan is designed to ensure a smooth transition once the bill is passed. The SCA is conducting mock audits, with draft regulations having been published in November 2024. The final stage is for National Treasury to receive state law adviser certification.
Are there plans?
The Cofi Bill’s final draft is before Parliament, with the FSCA developing new licensing, supervision and enforcement frameworks in anticipation of its enactment.
Is it on the agenda?
The bill is a top priority for the FSCA and Natioal Treasury, highlighted in the 2025–2028 regulatory strategy and repeatedly referenced in SONA and Budget speeches.
Goals
To modernise and harmonise market conduct regulation across all financial institutions, protecting consumers and promoting fair competition.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury Parliament
Summary
The COFI Bill replaces a patchwork of legacy laws with a single, comprehensive framework for market conduct, aligning South Africa with global “Twin Peaks” standards and enhancing regulatory clarity. The FSCA and NT are driving passage of the Conduct of Financial Institutions Bill to consolidate outcomes and institute principles-based supervision. The COFI Bill has been published with a sector-wide review and a market consultation phase-in in progress.
Is it working?
The reform is nearing completion, with broad industry support and strong government commitment. The main remaining step is parliamentary approval, after which the FSCA will oversee phased implementation. The COFI Bill is expected to be enacted in late 2025, after which it will fundamentally reshape the market conduct landscape.
Actions
Public consultations have concluded and the FSCA is running industry readiness programmes. The phased implementation plan is designed to ensure a smooth transition once the bill is passed. Mock audits are being conducted, with draft regulations having been published in November 2024. The final stage is for National Treasury to receive state law adviser certification. COFI Bill implementation moving well with significant completed targets for sector harmonisation.
Are there plans?
The Cofi Bill’s final draft is before Parliament, with the FSCA developing new licensing, supervision and enforcement frameworks in anticipation of its enactment. There is a transition plan together with finalisation and sector adaptation as well as periodic reviews.
Is it on the agenda?
The bill is a top priority for the FSCA and Natioal Treasury, highlighted in the 2025–2028 regulatory strategy and repeatedly referenced in SONA and Budget speeches. This is a Parliament/Cabinet strategic regulatory agenda with FSCA industry consultations ongoing.
Goals
To modernise and harmonise market conduct regulation across all financial institutions, protecting consumers and promoting fair competition. The main objective is to harmonise market regulation and outcomes-driven conduct rules.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury Parliament
Summary
Once enacted, the Conduct of Financial Institutions Act will enable: (i) a unified licence and activity‑classification system; (ii) FSCA with powers to issue conduct standards that apply across sectors; (iii) transitional arrangements to convert existing licences and migrate conduct requirements out of legacy laws (FAIS, parts of insurance, CIS, pension and other legislation); and (iv) explicit mechanisms for proportionality, innovation sandboxes and financial‑inclusion exemptions. Legal and regulatory commentary anticipates enactment in 2026 followed by a transitional period of about three years for full migration and licence conversion.
View DetailsIs it working?
COFI is not yet in force, but the direction and architecture are well defined: there is broad consensus that a single, activity‑based conduct act should reduce fragmentation, improve customer outcomes supervision and give the FSCA clearer levers over culture, product design and distribution across the sector. Execution risks are mainly around legislative timing, the scale and sequencing of conduct standard rollout and the operational burden of licence conversion and systems change, particularly for smaller firms. FSCA has indicated that proportionality, phasing and extensive consultation will be used to manage these risks.
Actions
Actions to date include: (i) publishing successive drafts of the COFI Bill and the accompanying policy paper, “A stronger market conduct policy framework for South Africa”, setting out the activity‑based and cross‑sector design; (ii) extensive consultations with industry and consumer bodies since the first draft in 2018; (iii) FSCA issuing its Regulatory Strategy 2025-2028 and harmonisation communications, signalling that many new conduct standards will be made under COFI once enacted; and (iv) confirmation in legal and regulatory updates that the bill has moved through State Law Advisor processes and is being prepared for Cabinet and Parliamentary consideration, with transitional arrangements and licence conversion already being scoped.
Are there plans?
Key forward plans include: (i) securing Cabinet approval of the revised bill and tabling it in Parliament, with passage targeted for 2026; (ii) designing a phased transition during which existing FSP and other licences are converted, new conduct standards are consulted on and issued, and overlapping provisions in legacy acts are repealed or aligned; and (iii) embedding proportionality and innovation mechanisms (such as exemptions to support developmental, financial‑inclusion and fintech objectives) within the FSCA’s policy and supervisory approach. FSCA and National Treasury communications emphasise that institutions should already be aligning governance, culture, product‑lifecycle and customer‑outcomes frameworks with COFI principles in anticipation of enactment.
Is it on the agenda?
The 2026 Budget Review positions COFI as a central pillar of the ongoing financial sector reform agenda, noting that government will finalise the conduct framework to complement prudential reforms and to support transformation, inclusion and competition. FSCA’s Regulatory Strategy 2025–2028 identifies preparing for COFI implementation as a major focus, including harmonisation projects, license‑conversion design and new cross‑cutting conduct standards, while external updates report that Cabinet approval and tabling in Parliament are expected in early 2026, with enactment later in the year.
Goals
To establish a single, activity‑based market‑conduct statute for all financial institutions and products, replacing the current patchwork of sectoral laws, and thereby strengthening customer protection, fair‑treatment outcomes, market integrity and proportionality under the Twin Peaks model.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury Parliament
Summary
South Africa's financial sector conduct regulation is currently governed by a patchwork of industry-specific laws - including the Financial Advisory and Intermediary Services Act (FAIS), the Collective Investment Schemes Control Act (CISCA), the Short-term Insurance Act, the Long-term Insurance Act and others. Each uses different definitions, different licensing requirements and different standards. The result is inconsistency, gaps in consumer protection and opportunities for firms to choose their legal structure to minimise regulation. The Conduct of Financial Institutions Bill (COFI) replaces all of these with a single, consistent framework. COFI has been in development since 2018. Cabinet approved it for submission to Parliament on 1 April 2026. The finance minister published a formal notice of introduction in the National Assembly in the Government Gazette on 17 April 2026. The bill is being reviewed by the Office of the Chief State Law Adviser (OCSLA - the government's legal quality-control office) before formal tabling. Cabinet has approved the COFI Bill for submission to Parliament.
A three-year transitional period for industry to comply is anticipated after the bill is enacted.
Is it working?
Cabinet approval after eight years of development is a genuine landmark. ENS Africa describes COFI as "one of the most important shifts in market conduct regulation since the adoption of the Twin Peaks model". The Twin Peaks model (adopted in 2018) separated prudential supervision from market conduct regulation into two distinct regulatory bodies. COFI completes that architecture by giving the FSCA a comprehensive, consistent conduct law to enforce. However, OCSLA certification, formal tabling, parliamentary scrutiny, public hearings and Presidential assent are all still to be done. After enactment, a three-year industry transition period follows, during which all affected firms will need to apply for new licences and adapt to the new outcomes-based approach.
Actions
Cabinet approved the bill on 1 April 2026. The finance minister published formal notice of introduction in GG 54520 on 17 April 2026. The bill is undergoing OCSLA certification. The General Laws (AML/CFT) Amendment Bill 2026 was approved for Parliament on the same date.
Are there plans?
Yes. NT confirmed on 21 April 2026 that the bill is being scrutinised by OCSLA and will be introduced in Parliament after certification. NT noted it "will take some time" given the bill's length. The FSCA has confirmed a three-year industry transition plan after the bill is enacted.
Is it on the agenda?
Yes. Cabinet approved on 1 April 2026. The finance minister gazetted the notice of introduction on 17 April 2026. NT and the FSCA are co-drivers.
Goals
To enact a single, comprehensive law governing how all South African financial institutions must treat their customers. This will replace a fragmented collection of industry-specific laws with one consistent, outcomes-driven conduct framework that applies across banks, insurers, asset managers and other financial service providers.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury Parliament
Summary
South Africa's financial sector conduct regulation is currently governed by a patchwork of industry-specific laws - including the Financial Advisory and Intermediary Services Act (FAIS), the Collective Investment Schemes Control Act (CISCA), the Short-term Insurance Act, the Long-term Insurance Act and others. Each uses different definitions, different licensing requirements and different standards. The result is inconsistency, gaps in consumer protection and opportunities for firms to choose their legal structure to minimise regulation. The Conduct of Financial Institutions Bill (COFI) replaces all of these with a single, consistent framework. COFI has been in development since 2018. Cabinet approved it for submission to Parliament on 1 April 2026. The finance minister published a formal notice of introduction in the National Assembly in the Government Gazette on 17 April 2026. The bill is being reviewed by the Office of the Chief State Law Adviser (OCSLA - the government's legal quality-control office) before formal tabling. Cabinet has approved the COFI Bill for submission to Parliament.
A three-year transitional period for industry to comply is anticipated after the bill is enacted.
Is it working?
Cabinet approval after eight years of development is a genuine landmark. ENS Africa describes COFI as "one of the most important shifts in market conduct regulation since the adoption of the Twin Peaks model". The Twin Peaks model (adopted in 2018) separated prudential supervision from market conduct regulation into two distinct regulatory bodies. COFI completes that architecture by giving the FSCA a comprehensive, consistent conduct law to enforce. However, OCSLA certification, formal tabling, parliamentary scrutiny, public hearings and Presidential assent are all still to be done. After enactment, a three-year industry transition period follows, during which all affected firms will need to apply for new licences and adapt to the new outcomes-based approach.
Actions
Cabinet approved the bill on 1 April 2026. The finance minister published formal notice of introduction in GG 54520 on 17 April 2026. The bill is undergoing OCSLA certification. The General Laws (AML/CFT) Amendment Bill 2026 was approved for Parliament on the same date.
Are there plans?
Yes. NT confirmed on 21 April 2026 that the bill is being scrutinised by OCSLA and will be introduced in Parliament after certification. NT noted it "will take some time" given the bill's length. The FSCA has confirmed a three-year industry transition plan after the bill is enacted.
Is it on the agenda?
Yes. Cabinet approved on 1 April 2026. The finance minister gazetted the notice of introduction on 17 April 2026. NT and the FSCA are co-drivers.
Goals
To enact a single, comprehensive law governing how all South African financial institutions must treat their customers. This will replace a fragmented collection of industry-specific laws with one consistent, outcomes-driven conduct framework that applies across banks, insurers, asset managers and other financial service providers.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury Parliament