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FSCA publishes roadmap for phasing in Conduct of Business Returns

The FSCA has published a roadmap for the implementation of the cross-sectoral conduct of business returns (Omni-CBR), as well as the draft Omni-CBR template for public consultation.

The Authority said the Omni-CBR is intended to facilitate streamlined cross-sectoral statutory reporting and sets out the conduct indicators to be reported on by financial institutions in future.

“It will form the cornerstone of the FSCA’s supervisory toolkit and reflects the FSCA’s increasing focus on embedding an evidence-based and data-driven approach to regulation and supervision.”

The roadmap and the draft Omni-CBR template can be download from www.fsca.co.za > Regulatory framework > Documents for consultation > General FSCA legislation > FSCA Communication 16 of 2022 (General).

According to the roadmap, the FSCA aims to have the Omni-CBR in place by June 2026.

The Omni-CBR will be rolled out in four phases, with the first phase starting this month. Phase 1 will consist of:

June to August

  • Publishing the roadmap and draft template and holding a series of explanatory webinars; and
  • Hosting interactive workshops and obtaining comments on the draft template.

August to October

  • Collating and reviewing input received from the workshops and comments

October to December

  • Engaging on specific comments and updating the draft template

First quarter of 2023

  • Publishing the second draft template and starting Phase 2.

Phase 2 will involve pilot reporting by the industry, “to assess systems and operational impact”.

Phase 3, which is scheduled to start in 2024, will introduce a two-year transitional period, during which reporting will be phased in based on the readiness of different sectors and entity types.

Phase 4, in 2026, will see “full and final statutory conduct reporting by all sectors” every quarter.

Explanatory webinars

The FSCA has released a three-part webinar series containing detailed information on the content and structure of the draft Omni-CBR, as well as the rationale for including certain indicators in the draft Omni-CBR.

The webinars, which are on the FSCA’s YouTube channel, focus on the following:

Part 1. The contextual and regulatory background to the development of the Omni-CBR and general guidance on the navigation and use of the OmniCBR template. Click here to view the webinar.

Part 2. Detailed explanations of the information requested in the “All sheets” section of the Omni-CBR. These are the sheets requesting general information that must be completed by all financial institutions across all sectors. Click here.

Part 3. The “Additional business composition sheets” section of the Omni-CBR. These sheets apply to financial institutions in certain sectors only and are aimed at obtaining information about specific risks and trends applicable to that sector. Click here.

Interactive workshops

The FSCA will invite industry stakeholders to participate in virtual workshops in June and July.

“The workshops are intended to be interactive platforms for stakeholders to present initial questions, comments and concerns relating specifically to the terminology used and types of indicators identified in the draft Omni-CBR template,” the Authority said.

There will also be an opportunity for stakeholders “to suggest possible alternative data points that the FSCA could consider, to help obtain comparable information in a more pragmatic and/or streamlined manner without undermining the overarching supervisory objectives sought to be achieved through the Omni-CBR”.

The workshops will be hosted on Microsoft Teams on the following dates:

  • Insurers and micro-insurers: 21 June, 1pm to 4.30pm
  • Retirement funds and retirement fund benefit administrators: 22 June, 9.30am to 1.30pm
  • Co-operative financial institutions: 30 June, 9am to 12.30pm
  • Investment providers: 4 July, 10am to 1pm
  • FSPs with an annual revenue or fund value of more than R5 million: 7 July, 1.30pm to 4.30pm
  • FSPs with an annual revenue or fund value of less than R5 million: 8 July, 10am to 1pm
  • Banks: 12 July, 10.30am to 1.30pm

The workshops for FSPs have been split in two because of the potentially large number of attendees, as well as the possible differences in issues depending on the size, nature and complexity of an FSP. However, a licensed FSP may register for and attend the workshop that is most convenient for it, the FSCA said.

Prospective attendees who would like to do presentations and/or submit questions or comments at the workshops must indicate that they “actively” want to participate in the workshop when responding to the invitation.

Financial institutions will also be provided with an opportunity to arrange individual meetings with the FSCA after the workshops to discuss specific issues that may not have been addressed in the webinars or the workshops.

Comments on outstanding issues may also be submitted via the comments process below.

Submission of written comments

The FSCA also invites written comments from stakeholders on the draft Omni-CBR template (Annexure A).

Comments must be submitted via the FSCA’s “Comments” portal, which can be accessed by going to www.fsca.co.za > Regulated entities > E-services.

The “Comments” portal will be available from 10 June to 10 August. The portal will be closed after this date.

For more information, contact Juanita Smit at Juanita.Smit@fsca.co.za, and copy the email to FSCA_Omni_CBR_Comments@fsca.co.za.

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