This paper deals with an in-depth examination of the financial industry in South Africa, a sector recognized as one of the most developed globally and with significant ties to the country's economic growth. The banking sector, in particular, is characterized by a concentration of power within a few major institutions, responsible for more than 90% of the industry's revenue. However, this robust financial system faces several challenges, including high financing costs, limited financial inclusivity, susceptibility to collusion, and a lack of innovation, all of which contribute to a relatively low level of competitiveness in the market.
The paper's primary aim is to investigate the roles and functions of two key entities, the Financial Institutions Regulatory Authority and the Competition Commission, within the South African financial markets. This investigation occurs in the context of regulatory changes, specifically the implementation of the Financial Sector Regulation (FSR) Act, which has expanded the regulatory reach of the Financial Sector Conduct Authority (FSCA). The FSR Act now covers financial products and services not previously regulated by the Financial Services Board (FSB), encompassing areas such as banking, loans, and foreign currency transactions. A comprehensive research methodology is adopted, incorporating both qualitative and quantitative approaches. It scrutinizes the dynamics of the South African banking sector, evaluating the impact of these regulatory changes on market competition and consumer protection. Additionally, the paper explores the extent to which these regulatory developments contribute to enhancing access to financial services and facilitating the restructuring of the financial industry.
Inhaltsverzeichnis (Table of Contents)
- Abstract
- Introduction
- Discussion
- Implementing national policies affecting the financial sector
- Cooperation and collaboration in a Twin Peaks framework
- South African Reserve Bank
- Financial Intelligence Centre
- Financial Sector Assessment Programme (FSAP)
- Engaging with the FSCA
- Enhanced research and analysis capacity
- Informed financial customers
- Financial literacy and consumer education initiatives
- Concurrent jurisdiction in the banking sector
- Summary
- Conclusion
- Reference List
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This project aims to examine the role played by the Financial Services Conduct Authority (FSCA) and the Competition Commission in South African financial markets. It delves into how these institutions contribute to the effectiveness, transparency, and consumer protection within the sector.
- The role of the FSCA and Competition Commission in regulating South African financial markets
- The impact of national policies on the financial sector
- Cooperation and collaboration within a Twin Peaks regulatory framework
- The importance of financial literacy and consumer education
- The influence of the FSCA on economic growth, job creation, and poverty reduction
Zusammenfassung der Kapitel (Chapter Summaries)
The abstract provides an overview of the South African financial industry, highlighting its strengths and weaknesses. The introduction delves into the mission and objectives of the FSCA, emphasizing its role in promoting financial stability and consumer protection. The discussion section explores the implementation of national policies, cooperation within a Twin Peaks framework, and the collaborative efforts of various regulatory bodies, such as the South African Reserve Bank and the Financial Intelligence Centre.
Schlüsselwörter (Keywords)
The core keywords and focus topics include financial regulation, consumer protection, banking sector, South Africa, Financial Services Conduct Authority (FSCA), Competition Commission, Twin Peaks framework, financial literacy, and economic development.
- Quote paper
- Veliswa Ntatiso (Author), 2022, The Role of Financial Services Conduct Authority and Competition Commission in South African Financial Markets, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/1402113
