Government Notice No. 633 of 2020

Financial Sector Regulation Act, 2017 (Act No. 9 of 2017 - the FSRA) » further Processing of Draft Amendments...

Title	Financial Sector Regulation Act, 2017 (Act No. 9 of 2017 - the FSRA) » further Processing of Draft Amendments to Regulations in terms of the Act
Department	National Treasury
Gazette	National Gazettes, No. 43395 of 04 June, 2020, 6 page(s), 156Kb

STAATSKOERANT, 4 JUNIE 2020                         No. 43395    3

GOVERNMENT NOTICE
                          
                                                 NATIONAL TREASURY

No. R.                           NATIONAL TREASURY                                              2020

NO. 633                                                                                 04 JUNE 2020

FURTHER PROCESSING OF DRAFT AMENDMENTS TO REGULATIONS IN TERMS OF
                                       FINANCIAL SECTOR REGULATION ACT, 2017

The Minister  of Finance,  in Government  Notice No.  R1555 of  29  November  2019,  gave  notice as
                 required in terms of section 288(4) of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017 -
                 "the FSRA"), of the publication for public comment of draft Amendments to Regulations which were
                 published in Government Notice No. R405 of 29 March 2018, as amended, that are proposed to be
                 made in terms of sections 61(4), 288 and 304 of the FSRA.

Amendments proposed to regulation 3 of the Regulations are intended to provide for a more effective
                 transitional  management  committee during the  transitional  phase  until the  Commissioner  of the
                 Financial Sector Conduct Authority (“FSCA”) assumes office.

Amendments proposed to regulations 9 to 11 of the Regulations are intended to provide for a more
                 efficient and streamlined appointment process for the Commissioner and Deputy Commissioners of the
                 FSCA.

Due to the suspension of Parliament as a result of the COVID-19 pandemic, it has not been possible to
                 submit  the draft  Amendments to  the  Regulations to  Parliament  for  30 days  while  Parliament  is in
                 session. As Parliament gradually resumes activities through virtual meetings focusing initially on urgent
                 matters related to addressing the pandemic, the consideration of matters such as the draft Amendments
                 to the Regulation will, understandably, not be prioritised.

Delays in finalising the draft Amendments to the Regulations will result in delays to appointments being
                 made for the positions of the Commissioner and Deputy Commissioners of the FSCA, which will lead
                 to prejudice to financial customers and harm to the financial system. In this time of severe economic
                 crisis globally and domestically resulting from the COVID-19 pandemic, it is critical that the FSCA is
                 urgently capacitated to fulfil its mandate under the FSRA as effectively as possible.  The FSCA is a vital
                 institution for South Africa to weather and recover from this crisis, and it must have a strong, capable,
                 effective leadership to play its role. The former Chairperson of the Financial Services Board, who in the
                 Regulations is designated to perform the functions of the Commissioner of the Financial Sector Conduct
                 Authority  until a Commissioner  is appointed,  must  shortly  vacate  the  position,  which makes the
                 appointment of the Commissioner very urgent. Further delays will also defeat the object of the draft
                 Amendments to the Regulations, which are specifically intended to expedite the appointments of the
                 Commissioner and Deputy Commissioner.

It is, therefore, essential for the further processing of the draft Amendments to the Regulations to be
                 completed  under  the  urgent  process provided for  in section  288(7) and (8)  of the FSRA.   Public
                 comments were invited on the draft Amendments to the Regulations, during the period between 29
                 November 2019 and 24 January 2020,  which  is longer than the minimum 7-day period required  in
                 section 288(7)(a)(ii) of the FSRA. One submission was received in response to the request for public
                 comments,  which is  indicated  in the consultation  report  that  is  published  on the  National Treasury
                 website.

The draft Amendments to the Regulations will urgently be submitted to Parliament as required in section
                 288(8)(b) of the FSRA, for a period of 7 days, whether or not Parliament is in session.

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Government Notice No. 633 of 2020

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