Financial sector reforms

Strengthening governance and investment oversight in pension funds through new standards and proactive supervision

The reform introduces new conduct standards, proactive supervision, and a phased transition of prudential oversight from the FSCA to the Prudential Authority by March 2026.

Strengthening liquidity support for banks through enhanced assessment and support mechanisms

The revised emergency liquidity assistance (ELA) framework introduces new internal guidance, improved assessment protocols and operational enhancements, with further legal alignment in progress.

Move to new benchmark rate for money markets by phasing out JIBAR benchmark rate.

The reform involves a phased transition plan, industry consultation, with International Swaps and Derivatives Association (ISDA) fallback protocols and new conventions for cash market instruments, with JIBAR set to cease by December 2026.

Corporation for Deposit Insurance (CODI)

CODI is one of a number of Twin Peaks regulatory reforms introduced after the 2008–09 global financial crisis. It is part of the wider financial sector safety net that includes the Prudential Authority (PA), which supervises financial institutions; the Financial Sector Conduct Authority (FSCA) that ensures that financial institutions treat their customers fairly and transparently;…

Capital flows management framework review; fostering business growth and promoting investment in the region.

Unlisted companies and licensed private equity funds are currently allowed to invest offshore up to the limit of R5bn, in line with foreign direct investment. More than R5bn requires SARB approval. Overarching reforms to South Africa’s foreign exchange system include fostering growth of high-potential and innovative businesses, promoting trade and reducing trade-related red tape. Authorised…

Consolidation of four ombuds offices into a single redress system.

Restructuring the Gold and Foreign Exchange Contingency Reserve Account to manage forex reserves and reduce government borrowing.

The reform introduced a new settlement framework for the Gold and Foreign Exchange Contingency Reserve Account (GFECRA), allocating R250bn between the SARB and National Treasury to stabilise public finances and improve transparency. COMPLETE: We stopped tracking this reform at end-June 2025 as The GFECRA settlement framework reform has been fully completed as planned with the…

Enact COFI Bill to harmonise market regulation

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.

Regulation of fintech, crypto assets and digital payment providers

This reform creates a regulatory framework for crypto assets, mandates licensing for virtual asset service providers (VASPs) and introduces interim anti-money laundering rules, with stablecoin and decentralised finance (DeFi) policy development under way.

Risk-based supervision and capital adequacy reforms through enhanced monitoring, stress testing and reporting

The reform involves phased implementation of Basel III/IV, enhanced stress testing and strengthened supervision for banks and insurers, with a focus on systemic risk and depositor protection.