FSCA Regulatory Strategy 2025 - 2028

The FSCA (Financial Sector Conduct Authority) recently released its Regulatory Strategy which sets out the Authority’s direction for the next three years. The strategy confirms the Authority’s ongoing commitment to building a financial sector that prioritises the improved outcomes for customers, while continuing to adaptively and proactively uphold their forward-looking regulatory approach.

What’s Staying – and What’s Evolving

The FSCA continues to focus on five strategic objectives, building on the foundation laid over the past few years:

1.      Strengthen industry practices to ensure fair treatment and outcomes for financial customers.

2.      Act against misconduct to uphold trust, confidence, and integrity within the financial sector.

3.      Promote innovation, inclusion, and sustainability in the growth of the financial services industry.

4.      Enable financial resilience among households and small businesses through better support and empowerment.

5.      Accelerate the transformation of the FSCA into a more efficient, socially responsible, and responsive conduct regulator.

Laying the groundwork for COFI

A significant part of the strategy is focused on preparing for the rollout of the COFI Bill (Conduct of Financial Institutions Bill). The FSCA is updating its licensing and supervision systems to align with the Bill’s principles and are preparing to take on new activities that will fall within their jurisdiction under the COFI Bill.

Supervision through technology

The FSCA is also introducing a new tech-driven platform known as the IRS (Integrated Regulatory Solution). This system will make it easier to:

• Streamline licence applications

• Enhance risk-based supervision

• Enable effective data-driven oversight of the financial sector

• Collect and analyse information more effectively

• Respond faster to emerging risks and more targeted regulatory interventions.

Although South Africa’s financial sector continues to evolve, the FSCA confirms that its main focus remains - protecting financial customers and strengthening the integrity and resilience of the financial system.

It is possible that we can expect implementation by March 2028, aligning with the FSCA’s current strategic direction. However, as with any forward-looking strategy, timing remains a calculated move and tends to be indicative rather than definitive.