The COFI Bill has been introduced to Parliament: Here's what we know so far
On 17 April 2026, Finance Minister Enoch Godongwana gave notice in Government Gazette 54520 (Notice 7376) of the introduction of the Conduct of Financial Institutions Bill, 2026 (the COFI Bill) to the National Assembly.
If you've been following South Africa's financial services regulatory reform, you'll know this Bill has been in the works since 2018. Its introduction to Parliament is a significant milestone, but it's important to understand exactly where we are in the process and where we aren't.
Important: this is not law yet
The full text of the COFI Bill has not yet been made publicly available. Only an explanatory summary has been published in the Gazette, as required by Rule 276(1)(b) and (c) of the National Assembly Rules. National Treasury confirmed on 21 April 2026 that the Bill is still being scrutinised by the Office of the Chief State Law Adviser for certification and that it will "take some time" before this "lengthy Bill" is published.
Before the Bill becomes law, the following still needs to happen:
Parliamentary review of the full Bill
A period for public and industry comment, with possible amendments (potentially significant ones)
Debate and approval by both the National Assembly and the National Council of Provinces
Presidential signature
A formal commencement date, expected to be phased over approximately three years
The Bill will likely be referred to the Finance Portfolio Committee, which will call for written submissions and may hold public hearings, this is where the industry gets its say.
Nothing in the explanatory summary should be treated as final. The Bill's provisions could be amended, restructured or delayed during the Parliamentary process.
How did we get here?
The first draft of the COFI Bill was published for public comment in December 2018, proposing to repeal 13 financial sector laws and replace them with a single market conduct law. A second draft followed in September 2020, expanding licensing categories and refining the approach. The Nedlac engagement process also commenced during this period.
2022 was a pivotal year. The Financial Sector Laws Amendment Act (Act 23 of 2021) was gazetted on 28 January 2022, introducing the bank resolution framework and the Corporation for Deposit Insurance. The General Laws (AML/CFT) Amendment Act (Act 22 of 2022) was signed into law on 22 December 2022. The Financial Sector and Deposit Insurance Levies Act (Act 12 of 2022) was also enacted. The FSCA published its first three-year Regulation Plan in June 2022 and the Nedlac Report on the COFI Bill followed in November 2022. Together, these laid the groundwork for the regulatory architecture COFI is designed to complete.
Between 2023 and 2025, the FSCA established the COFI Bill Transition Working Group and used its existing FSR Act powers to advance conduct standards. No third public draft was released. In March/April 2026, Cabinet approved the submission of the Bill and notice of introduction was published on 17 April 2026.
What does the explanatory summary cover?
The summary is broadly consistent with earlier drafts. At its core, the Bill establishes a consolidated regulatory framework, a single set of rules for all licensed financial institutions, replacing the current patchwork including FAIS, CISCA, the Short-term and Long-term Insurance Acts, the Credit Rating Services Act and others.
It regulates the appointment and debarment of representatives, introduces overarching business conduct principles, and prescribes governance and accountability obligations for governing bodies. Institutions subject to the B-BBEE Act must have transformation plans in place. Fitness and propriety requirements for key persons are also addressed.
On the customer side, the Bill includes specific retail and small business customer protection provisions tied to the TCF agenda, alongside principles for advertising and disclosure and conduct requirements for handling client funds and trust property.
Financial institutions will need to demonstrate adequate financial soundness and operational ability and meet reporting, accounting and audit obligations. There are dedicated insurance-specific conduct requirements, and the FSCA will be empowered to issue binding conduct standards without amending primary legislation. Stronger enforcement mechanisms and new offences are created. The Bill also provides a framework for written applications and regulatory notifications to the FSCA.
One of the most practically significant changes is the introduction of a unified licensing framework across the entire financial sector, replacing the current system of sector-specific licences. The Bill also provides a recovery and exit framework, a foreign jurisdiction recognition framework, and sector-specific provisions for credit rating agencies, CIS managers, friendly societies and statutory ombuds.
The Pension Funds Act is expected to be renamed the Retirement Funds Act, and the FSR Act will be amended. Selected existing laws will be repealed with savings provisions, and a regular legislative review mechanism is built in.
Also introduced: The General Laws (AML/CFT) Amendment Bill 2026
Notice 7377 in the same Gazette announced the introduction of the General Laws (AML/CFT) Amendment Bill, 2026. This builds on the 2022 AML/CFT Act and proposes further amendments ahead of the FATF Mutual Evaluation scheduled for mid-2026 to October 2027.
What should you do now?
Don't panic, but don't ignore this either. The direction of travel hasn't changed, but the Bill that eventually becomes law may look materially different from what has been summarised so far.
We will keep you updated as the legislative process unfolds. Please reach out to our team if you have any questions, we are here to help.
This blog is for informational purposes only and does not constitute legal or regulatory advice. The COFI Bill has been introduced to Parliament but is not yet law. The full text has not been publicly released and provisions may be amended, restructured, or delayed. No business or compliance decisions should be based solely on the current explanatory summary.
