Jonathan Dixon provided more information on the Financial Sector Regulation Bill which is currently in the final stages of Parliamentary consideration.
The Bill provides for staggered implementation.
- The Prudential Authority will be established in an existing entity, the SA Reserve Bank.
- The Financial Sector Conduct Authority, which will replace the FSB, will be a new entity, under new leadership.
At this stage, the Reserve Bank has established a Prudential Authority organisational structure, with its own leadership.
The FSB is finalising a handover report to the future leadership of FSCA with recommendations on —
- Regulatory strategy
- Organisational structure
- Processes & procedures to give effect to new supervisory approach and
- IT solutions to support new supervisory approach
The biggest challenge for the new Financial Sector Conduct Authority will, no doubt, be change management, both internally and externally as it grapples with implementing the principles based regulations which will replace the current rules-based approach.