South Africa’s financial education framework moves into full implementation today (26 March) as the Financial Sector Conduct Authority’s Conduct Standard 1 of 2025 reaches the end of its 12-month transition period.
Although financial institutions are not required to provide financial education, those that do are now subject to enforceable governance, design, and reporting requirements – marking a shift from voluntary initiatives to regulated activity.
The latest developments build on a multi-year regulatory process. The FSCA first published a draft Conduct Standard in 2023 to address fragmented and uncoordinated financial education initiatives, concerns about marketing being presented as education, and limited data on the effectiveness of programmes.
Since then, the framework has been refined through consultation and industry engagement, culminating in the release of Conduct Standard 1 of 2025. The Standard came into effect on 26 March 2025, with a 12-month implementation period to allow institutions to put the necessary governance and reporting structures in place.
Read: Defining ‘financial education initiative’: key takeaways from new Conduct Standard
At the Authority’s recent Industry Conference, Lyndwill Clarke, department head: consumer education at the FSCA, said the Standard forms part of a broader effort to align financial education initiatives across the sector and improve consumer outcomes.
Standard formalises governance, scope and accountability
A central feature of the Conduct Standard is that it is not prescriptive in requiring financial institutions to provide financial education. Instead, it applies only where a financial institution chooses to provide or offer a financial education initiative.
However, once an institution does provide financial education, full compliance with the Standard becomes mandatory. This includes requirements relating to governance, design, monitoring, evaluation, and reporting.
The Standard further provides for proportional application, allowing requirements to be applied based on the nature, size, complexity, and risk profile of the institution, as well as the target group and nature of the initiative.
It introduces enforceable requirements for financial institutions that provide financial education, shifting the focus from voluntary, often fragmented initiatives to structured, outcomes-driven programmes.
It requires institutions to implement governance and oversight arrangements, ensure that initiatives are appropriately designed and targeted, and monitor and evaluate their effectiveness.
Reporting to the FSCA will form part of this framework.
A key feature of the Standard is the clear delineation between education and marketing. Financial education initiatives must be objective and impartial and may not promote specific financial products or services.
The definition of what constitutes a financial education initiative was also refined. Activities must form part of a structured programme or systematic initiative, rather than once-off efforts.
Charter shifts focus to industry-wide commitment
Alongside the Standard, the FSCA and National Treasury have been developing the Financial Education Commitment Charter, which is intended to secure formal, industry-wide commitment to improving financial literacy.
First introduced in 2024, the harter responds to persistent financial vulnerability among South Africans, including low levels of emergency savings and limited understanding of financial products.
Read: FSCA and National Treasury urge financial sector to unite on financial education charter
The initial draft set out five commitments, including adopting a board-approved financial education plan, delivering targeted programmes, adhering to best practice standards, increasing impact, and prioritising customer financial wellness.
Clarke said these commitments have since been refined following industry engagement. Under the revised framework, financial institutions will be required to adopt a financial education plan approved by the governing body at least annually and make it publicly available. Delivery of financial education must align with this plan and target defined groups.
He indicated that the revised commitments now explicitly link financial education to the Conduct Standard, requiring that initiatives adhere to its requirements, while also considering internationally recognised standards and best practice.
The focus on impact has been retained but sharpened, with institutions expected to consider resourcing, partnerships, and digitisation in scaling their initiatives. The earlier standalone commitment relating to prioritising customer financial wellness has been incorporated into the broader objectives and commitments of the Charter.
As previously reported, the FSCA has emphasised that financial education should not be treated as a compliance exercise or corporate social responsibility activity, but as a strategic intervention aimed at improving financial behaviour and resilience.
Clarke said the Charter is being positioned as a strategic layer within the broader framework, requiring financial education to be elevated to board and executive level, with mechanisms being developed to track implementation and assess impact over time.
National policy to anchor the framework
A National Treasury financial education policy is expected to complete the framework, providing overarching direction and aligning industry efforts with national objectives.
Although detailed proposals have not yet been published, the policy is expected to build on South Africa’s existing National Consumer Financial Education Strategy, with a stronger focus on coordination, implementation, and measurable outcomes.
Clarke said the policy, together with the Conduct Standard and the Charter, form part of an effort to create a coordinated and implementable national approach. The FSCA is working with the National Consumer Financial Education Committee to align these initiatives and avoid duplication across the sector.
The policy is likely to formalise roles across regulators, the industry, and other stakeholders, reinforcing a collaborative model for delivering financial education and improving consumer financial resilience.
From activity to measurable outcomes
The developments mark a shift in regulatory expectations.
The Conduct Standard introduces enforceable requirements and supervisory oversight. The charter seeks to secure leadership-level commitment and accountability. The forthcoming policy is expected to provide national direction and coordination.
The focus is increasingly on outcomes – not only whether financial education is delivered, but whether it leads to improved financial capability, behaviour, and resilience among consumers.
Clarke indicated that measuring these outcomes remains a key challenge for the industry. He noted that the FSCA is exploring ways to track the effectiveness of financial education initiatives over time, including through baseline data collection and ongoing monitoring.
He also encouraged industry participants to engage with the regulator on this issue, particularly where institutions have practical ideas or methodologies for measuring impact. Developing credible and consistent approaches to outcome measurement, he suggested, will be critical to ensuring that financial education initiatives deliver meaningful value.
