The following section appears in the implementation document published on 1 February 2013.
Moving towards a twin peaks model of financial regulation will result in the South African Reserve Bank’s organisational design changing to encompass the prudential regulator, and the FSB being transformed into a new entity, the market conduct regulator.
The twin peaks model is expected to take place in two phases: the first phase will run during 2013/14 and will involve relevant legislation being developed and tabled in Parliament to enable the regulators to deliver on their revised mandates. This step will include integrating resources and staff who are currently responsible for prudential regulation from the FSB into the Bank.
The second phase, to be implemented over the medium term, will consist of harmonising specific financial sector legislative, regulatory and supervisory systems and frameworks.
It is this last paragraph that seems to indicate that the powers that be realise that a one-size-fits-all approach cannot work in practice. Implementation, though, seems at least two years away.
It is a common occurrence for many members of the financial services industry to treat discussion documents like their in-laws. If you want know where the industry is heading, take the time to read the literature, and engage in discussions.
Interested parties are encouraged to send written comments on this implementation document, particularly with regards to the “summaries” outlined at the end of Chapters 2 to 7. Comments should be sent to the Head of the FRRSC Secretariat, Mr Unathi Kamlana, via fax to 012 313 4974 or by email to firstname.lastname@example.org. The closing date for comments is 8 March 2013. Comments received will be considered in finalising the legislative proposals.
To help readers understand the concepts better, we have copied these summaries in one document. Please click here to access this summary.