In his speech on Tuesday in parliament on the National Treasury Budget Vote for 2017/18, Finance Minister Malusi Gigaba highlighted the following:
The Joint Standing Committees on Finance and Trade and Industry have had a number of hearings on the transformation of the financial sector.
Coming out of those hearings the following stands out:
- We need to reinvigorate the Financial Sector Charter to ensure all South Africans participate fully in the ownership, management, supply and take-up of financial services;
- Transforming the financial sector to serve South Africa better is key, including supporting SMEs and ensuring that financial institutions procure from SMEs and emerging businesses;
- Increased attention must be given to mutual based organisations that provide financial services like stokvels, burial societies and cooperatives, to build these into credible competitors to the highly concentrated banking and insurance sectors;
- Good conduct practices and financial inclusion result in a financial sector that helps South Africans to save for university and retirement, buy a home, make and receive payments and insure against theft and other losses.
The long-awaited Financial Sector Regulation Bill is expected to be passed by Parliament next month to ensure the implementation of a comprehensive system for better regulating the financial sector.
The Insurance Bill also currently before Parliament builds on the Twin Peaks model of financial regulation envisaged in the Financial Sector Regulation Bill, particularly in respect of prudential supervision of insurers.
The Financial Intelligence Centre Act will strengthen our regulatory framework on combating financial crime.
In the coming weeks, the Minister will outline steps to implement the FIC Act.