Financial Services Board (South Africa)
Encyclopedia
The Financial Services Board (FSB) is the government of South Africa
financial regulatory
agency responsible for the non-banking financial services industry in South Africa. It is an independent body that supervises and regulates the financial services industry in the public interest. This includes the regulation of the biggest stock exchange
in Africa the Johannesburg Stock Exchange
In September 2004, the Financial Advisory and Intermediary Services Act (FAIS) expanded the mandate of the FSB to include aspects of market conduct in the banking industry.
Financial Intelligence Centre Act (2001) and subsequent amendments have added responsibilities to the FSB to combat money laundering.
It is responsible for all non-bank financial intermediaries, this includes;
It is responsible for ensuring that the regulated entities comply with the relevant legislation as well as capital adequacy requirements to promote financial soundness of these entities and thereby protecting the investing community.
It has enforcement powers to deal with breaches through the enforcement committee. The Committee may impose unlimited penalties, compensation orders and cost orders. Such orders are enforceable as if it was a judgment of the Supreme Court of South Africa
.
It also runs a customer complaints service and there is a separate appeals board that can be approached by anybody aggrieved by a decision of the FSB or its executive officers. The appeals board is an independent tribunal comprising members who are neither employees of the FSB nor active participants in the financial services industry. Its chairman and the members are appointed by the Minister of Finance.
(IOSCO) and is a signatory of the IOSCO multilateral MoUs.
The FSB participates in the activities of African regulatory bodies, particularly those in the Southern African Development Community
(SADC) region. It has long standing a close relations with Committee Of Insurance, Securities And Non-Banking Financial Authorities (CISNA) part of the SADC directorate.
The Executive Officer is also the Registrar of Non-banking Financial Institutions. There are four Deputy Executive Officers responsible for supervision of the various industries, namely Financial Advisory and Intermediary Services, Retirement Funds and Friendly Societies, Insurance and Investment Institutions.
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
financial regulatory
Financial regulation
Financial regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the integrity of the financial system...
agency responsible for the non-banking financial services industry in South Africa. It is an independent body that supervises and regulates the financial services industry in the public interest. This includes the regulation of the biggest stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
in Africa the Johannesburg Stock Exchange
History
The FSB was established in 1990 based on recommendations by the Van der Horst Committee to create an independent body to supervise and regulate the non-banking financial services industry. A number of additional acts have expanded and increased the role of the FSB. These include;In September 2004, the Financial Advisory and Intermediary Services Act (FAIS) expanded the mandate of the FSB to include aspects of market conduct in the banking industry.
Financial Intelligence Centre Act (2001) and subsequent amendments have added responsibilities to the FSB to combat money laundering.
Responsibilities and functions
The FSB says that its vision is "To promote and maintain a sound financial investment environment in South Africa"It is responsible for all non-bank financial intermediaries, this includes;
- Capital Markets
- Collective Investment Schemes
- Financial Services Provider
- Insurers
- Re-insurers, short and long-term
- Lloyd's correspondents
- Other Credit Agents
- Nominee Companies
- Retirement Funds
- Friendly Societies
It is responsible for ensuring that the regulated entities comply with the relevant legislation as well as capital adequacy requirements to promote financial soundness of these entities and thereby protecting the investing community.
It has enforcement powers to deal with breaches through the enforcement committee. The Committee may impose unlimited penalties, compensation orders and cost orders. Such orders are enforceable as if it was a judgment of the Supreme Court of South Africa
Supreme Court of South Africa
The Supreme Court of South Africa was a superior court of law in South Africa from 1910 to 1996. It was made up of various provincial and local divisions with jurisdiction over specific geographical areas, and an Appellate Division which was the highest appellate court in the country...
.
It also runs a customer complaints service and there is a separate appeals board that can be approached by anybody aggrieved by a decision of the FSB or its executive officers. The appeals board is an independent tribunal comprising members who are neither employees of the FSB nor active participants in the financial services industry. Its chairman and the members are appointed by the Minister of Finance.
International
FSB is a member of International Organization of Securities CommissionsInternational Organization of Securities Commissions
The International Organization of Securities Commissions is an association of organisations that regulate the world’s securities and futures markets....
(IOSCO) and is a signatory of the IOSCO multilateral MoUs.
The FSB participates in the activities of African regulatory bodies, particularly those in the Southern African Development Community
Southern African Development Community
The Southern African Development Community is an inter-governmental organization headquartered in Gaborone, Botswana. Its goal is to further socio-economic cooperation and integration as well as political and security cooperation among 15 southern African states...
(SADC) region. It has long standing a close relations with Committee Of Insurance, Securities And Non-Banking Financial Authorities (CISNA) part of the SADC directorate.
Structure
The FSB is made up a of a board that oversees operations of the FSB through various committees. The board also appoints the FSB executive officer which presides over the day to day running of the FSB. As well as those committees, the FSB also provides funding for the ‘Office of the FAIS Ombud’ and the ‘Office of the PFA’. It does this on the basis of approved budgets. The Offices are part of the same regulatory framework within which the FSB operates but they are independent from the FSB as their sole mandate is to dispose of complaints lodged by consumers of financial services in terms of their respective Acts.The Executive Officer is also the Registrar of Non-banking Financial Institutions. There are four Deputy Executive Officers responsible for supervision of the various industries, namely Financial Advisory and Intermediary Services, Retirement Funds and Friendly Societies, Insurance and Investment Institutions.