The FSCA has just released a Draft Conduct Standard for Banks. The objective of the document is to introduce requirements that promote the fair treatment of financial customers of banks.
The draft Conduct Standard was designed to follow the approach of the six “Treating Customers Fairly (TCF) Outcomes” as well as the steps of a typical financial product lifecycle. Furthermore, the draft Conduct Standard is likely to lead to improved outcomes for customers due to better disclosure, and the proposal that product offerings must be designed for and targeted to appropriate customer groups.
After becoming effective, all banks, mutual banks and co-operative banks will be required to comply with the draft Conduct Standard. Specific transitional periods will be allowed for the alignment of all existing products and services if required.
The FSCA invites submissions on the draft Conduct Standard which it intends to make under section 106 of the FSRA. Comments on the draft Conduct Standard, using the submission template supplied may be submitted in writing on or before 18 June 2019 to the FSCA, at FSCA.RFDConductStandardBanks@fsca.co.za.
The submission template consists of two parts. Part B relates to comments on the drafting, substance and other details of the draft Conduct Standard and Part C relates to comments on the expected impact of the draft Conduct Standard.
Click here to download the statement supporting the Draft Conduct Standard.
Click here to download Annexure A Draft Conduct Standard for Banks
Click here to download the Annexure B Comment Template.