The Financial Sector Regulation Amendment Bill (FSRA Bill) is a piece of legislation that was introduced in the South African Parliament in 2021. The bill is designed to amend the Financial Sector Regulation Act (FSRA) of 2017. The FSRA Bill introduces a number of new provisions that are intended to improve the regulation of the financial sector in South Africa.
Some of the key provisions of the FSRA Bill include:
New provisions on financial inclusion: The bill introduces new provisions that are designed to promote financial inclusion in South Africa. These provisions include requiring financial institutions to offer basic banking services to low-income clients and requiring financial institutions to provide financial education to their clients.
New provisions on consumer protection: The bill introduces new provisions that are designed to protect consumers in the financial sector. These provisions include prohibiting unfair, deceptive, or misleading practices by financial institutions and requiring financial institutions to provide clear and concise information to their clients.
New requirements for financial institutions: The bill introduce new requirements for financial institutions. These requirements include requiring financial institutions to have adequate risk management systems in place and requiring financial institutions to report suspicious transactions to the Financial Intelligence Centre.
The FSRA Bill is still under consideration by the South African Parliament. However, if the bill is passed, it will have a significant impact on South African businesses. Businesses that operate in the financial sector will need to comply with the new provisions of the FSRA Bill. Businesses that do not comply with the new provisions could face penalties, such as fines or even imprisonment.
In addition to businesses that operate in the financial sector, other businesses that may be affected by the FSRA Bill include businesses that provide financial services, such as insurance companies and payment processors. These businesses may need to comply with the new provisions of the FSRA Bill, such as the provisions on consumer protection.
Businesses that are affected by the FSRA Bill should start preparing to comply with the new provisions now. This includes understanding the new provisions and taking steps to ensure that the business complies. Businesses should also consult with an attorney who specializes in regulatory compliance to get help with complying with the new provisions.