Financial Services Board (South Africa)
|Headquarters||Pretoria, South Africa|
The Financial Services Board (FSB) is the government of South Africa financial regulatory agency responsible for the non-banking financial services industry in South Africa. It is an independent body that supervises and regulates the financial services industry in the public interest. This includes the regulation of the biggest stock exchange in Africa the Johannesburg Stock Exchange
The FSB was established in 1991 based on recommendations by the Van der Horst Committee to create an independent body to supervise and regulate the non-banking financial services industry. A number of additional acts have expanded and increased the role of the FSB. These include;
In September 2004, the Financial Advisory and Intermediary Services Act (FAIS) expanded the mandate of the FSB to include aspects of market conduct in the banking industry.
Financial Intelligence Centre Act (2001) and subsequent amendments have added responsibilities to the FSB to combat money laundering.
Responsibilities and functions
It is responsible for all non-bank financial intermediaries, this includes;
- Capital Markets
- Collective Investment Schemes
- Financial Services Provider
- Re-insurers, short and long-term
- Lloyd's correspondents
- Other Credit Agents
- Nominee Companies
- Retirement Funds
- Friendly Societies
It is responsible for ensuring that the regulated entities comply with the relevant legislation as well as capital adequacy requirements to promote financial soundness of these entities and thereby protecting the investing community.
It has enforcement powers to deal with breaches through the enforcement committee. The Committee may impose unlimited penalties, compensation orders and cost orders. Such orders are enforceable as if it was a judgment of the Supreme Court of South Africa.
It also runs a customer complaints service and there is a separate appeals board that can be approached by anybody aggrieved by a decision of the FSB or its executive officers. The appeals board is an independent tribunal comprising members who are neither employees of the FSB nor active participants in the financial services industry. Its chairman and the members are appointed by the Minister of Finance.
FSB is a member of International Organization of Securities Commissions (IOSCO) and is a signatory of the IOSCO multilateral MoUs.
The FSB participates in the activities of African regulatory bodies, particularly those in the Southern African Development Community (SADC) region. It has long standing a close relations with Committee Of Insurance, Securities And Non-Banking Financial Authorities (CISNA) part of the SADC directorate.
The FSB is made up a of a board that oversees operations of the FSB through various committees. The board also appoints the FSB executive officer which presides over the day-to-day running of the FSB. As well as those committees, the FSB also provides funding for the ‘Office of the FAIS Ombud’ and the ‘Office of the PFA’. It does this on the basis of approved budgets. The Offices are part of the same regulatory framework within which the FSB operates but they are independent from the FSB as their sole mandate is to dispose of complaints lodged by consumers of financial services in terms of their respective Acts.
The Executive Officer is also the Registrar of Non-banking Financial Institutions. There are four Deputy Executive Officers responsible for supervision of the various industries, namely Financial Advisory and Intermediary Services, Retirement Funds and Friendly Societies, Insurance and Investment Institutions.