Conduct of Financial Institutions Bill (COFI)
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Individual Reform: Conduct of Financial Institutions Bill (COFI) 2026 - 2027

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

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

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.

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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.

References

Departments / Govt Institutions

Financial Sector Conduct Authority (FSCA) National Treasury Parliament

Analyst: Tinashe Kambadza
Status: In progress
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