As we pass the halfway point of the year, the pace of regulatory and legislative activity across South Africa’s financial sector shows no sign of slowing. Regulators continue to refine existing frameworks while laying the groundwork for significant future reforms.
There’s plenty of sporting entertainment to look forward to on the weekends, so it’s best to get through all the legislative requirements during the week.
THE FINANCIAL SECTOR CONDUCT AUTHORITY (FSCA)
FSCA publishes the 2026–2029 three-year regulation plan
The FSCA released its 2026 Three-Year Regulation Plan, outlining its regulatory priorities for the period up to 31 March 2029. The plan provides insight into the FSCA’s intended regulatory developments, legislative reforms, and supervisory focus areas across the financial sector.
The FSCA reported that it achieved significant progress during the 2025/2026 financial year, with numerous regulatory instruments being finalised, published for consultation, or submitted for parliamentary processes. The regulator indicated that most projects are progressing broadly in line with expectations, with no major delays reported.
A central theme of the regulation plan remains the implementation of the Conduct of Financial Institutions (COFI) Bill, which is expected to introduce a more harmonised, outcomes-based, and principles-based conduct regulatory framework across the financial sector. The FSCA will continue supporting National Treasury through the parliamentary process, and will focus on developing the supporting regulatory framework required for implementation.
The regulator noted that the transition to the COFI framework is expected to reduce regulatory fragmentation and simplify the legislative landscape over time.
The FSCA has identified several priority areas, including:
- Advancing the COFI Bill transition programme.
- Strengthening and harmonising conduct regulation across sectors.
- Enhancing financial markets regulation, including benchmark reform and central clearing frameworks.
- Developing cross-sector governance, outsourcing, operational resilience, and beneficial ownership standards.
- Ongoing reforms affecting retirement funds, collective investment schemes (CIS), and alternative investment funds.
- Developing a conduct framework for payment services.
The plan highlights several emerging themes where future regulatory intervention may be required, including:
- Sustainable finance and ESG-related disclosures.
- Open finance and data governance.
- Artificial intelligence in financial services.
- Data management and data risk.
- Cloud computing and data offshoring.
- Operational resilience and cyber-related risks.
The FSCA indicated that policy development and stakeholder engagement in these areas are ongoing, and may result in the development of future regulatory frameworks.
In the financial markets environment, the regulator will continue to work on:
- Benchmark regulation, including developments linked to benchmark administrators.
- Market infrastructure oversight.
- Recovery planning for market infrastructures.
- Short sale reporting and disclosure requirements.
- Securities financing transaction frameworks.
- Central clearing reforms for over-the-counter derivatives markets.
The FSCA highlighted the planned cessation of the Johannesburg Interbank Average Rate on 31 December 2026, and noted that work continues alongside the South African Reserve Bank and industry stakeholders to support the transition to ZARONIA. The regulator expects continued supervisory engagement and further regulatory support measures to facilitate an orderly market transition.
The regulator will continue to work on several retirement fund and collective investment scheme projects, including:
- Enhanced Regulation 28 reporting requirements.
- Frameworks dealing with pension fund liquidations.
- Collective investment scheme accounting standards.
- Alternative investment fund regulation.
- Reviews of existing CIS regulatory frameworks.
The FSCA reiterated that consultation and engagement with industry stakeholders will remain a critical component of its regulatory approach. It also acknowledged the cumulative impact of regulatory reform on the industry, and intends to manage implementation through phased approaches and consultation processes.
FAIS exemption amendments
The FSCA’s latest FAIS Notices (40, 41, 42, and 43 of 2026) extend several key exemptions from 30 June 2026 to 30 June 2029. While the amendments themselves are brief, their practical implications for financial services providers (FSPs), compliance officers, and smaller market participants are significant.
FAIS Notice 40 of 2026: Extends the exemption applicable to compliance officers from the requirements in section 4(4) of the Compliance Officer Notice (i.e. compliance officer monitoring programmes can continue to be applied on a “risk basis”).
FAIS Notice 41 of 2026: Extends the exemption granted to FSPs providing scripted sales of Tier 2 products from complying fully with section 13 of the General Code of Conduct, which governs supervision requirements.
FAIS Notice 42 of 2026: Extends exemptions relating to the section 19(3) audit report and liquidity requirements for FSPs not handling client funds.
FAIS Notice 43 of 2026: Extends exemptions relating to section 13(1)(c) applicable to juristic representatives (i.e. they are not required to meet all the direct fit-and-proper and oversight requirements applicable to them in their own right).
FSCA provisionally withdraws Imermarket’s FSP licence
The FSCA has provisionally withdrawn the FSP licence of Imermarket (Pty) Ltd (FSP 640) following preliminary investigation findings indicating a potential risk of harm to clients and the public.
The regulator’s concerns include alleged aggressive and high-pressure sales practices, the provision of advice by unauthorised individuals, inadequate suitability assessments and risk disclosures, and the reported failure to process client withdrawal requests. As a result, Imermarket may no longer provide financial services or receive additional client funds while the investigation continues. The FSCA emphasised that the withdrawal is provisional and that Imermarket has been given an opportunity to respond before a final decision is made.
FSCA public warnings
The FSCA issued a public warning advising consumers to exercise caution when dealing with Kobus Venter and Kobus Venter Wealth Planning. According to the FSCA, it received information that funds were being solicited from members of the public for trading purposes, while neither Venter nor Kobus Venter Wealth Planning is authorised to provide financial services in South Africa. The regulator was also unable to make contact with the parties using the details provided.
The FSCA has issued a public warning about an individual impersonating Rowan Capital (Pty) Ltd and one of its authorised representatives via WhatsApp. According to the regulator, the fraudster contacted Rowan Capital clients to request banking details under the guise of facilitating investment withdrawals. Rowan Capital confirmed that it has no association with the individual.
The FSCA issued a public warning about individuals impersonating JP Morgan Chase Bank, Johannesburg Branch to promote fraudulent investment opportunities through WhatsApp and a platform called JP Wealth Growth Study Group. The regulator confirmed that neither the bank nor its authorised representatives are associated with the scheme, which allegedly offers discounted stock investments.
The FSCA warned the public about individuals operating under the name Orion Broking, who are falsely claiming an association with Orion Broking Solutions (Pty) Ltd, an authorised FSP. The regulator confirmed that the impersonators are not authorised to provide financial services and have no connection with the licensed firm.
The FSCA has issued a public warning about fraudsters impersonating Ava Markets Capital (Pty) Ltd t/a Ava Trade on Facebook. Individuals falsely claiming to represent Ava Trade have been soliciting investments from members of the public, despite the company confirming that it has no association with them. The FSCA also confirmed that Praise van Vuuren and Maryk Calitz, who are allegedly behind the scheme, are not authorised to provide financial services and did not respond to its enquiries.
The FSCA has issued a public warning against Lumia Bit AI, Instant ePrex XP South Africa, Lunexa Vault, and Luaranivotheq, confirming that none of these platforms are authorised to provide financial services in South Africa. The regulator noted that the platforms promote automated, artificial intelligence-enabled trading in cryptocurrencies, forex, stocks, and trading signals, and cautioned consumers to be wary of unsolicited investment offers, particularly those promoted via social media.
In all instances, the FSCA reminded consumers not to accept financial advice, investment offers, or financial assistance from unauthorised individuals or entities. The regulator highlighted several common fraud indicators, including promises of unrealistic returns, unsolicited offers via social media, upfront payment requirements, pressure to act urgently, and vague investment information.
FSPs and consumers are encouraged to verify the authorisation status of individuals and firms through the FSCA’s official channels before investing or conducting business.
Investigation into the PIC
The FSCA announced that it is investigating the Public Investment Corporation SOC Ltd (PIC) following concerns over governance, leadership stability, transparency, and the potential impact on confidence in one of South Africa’s most significant financial institutions. The investigation, launched under section 135 of the Financial Sector Regulation Act, follows recent media reports concerning whistleblower allegations and the suspension of the PIC’s chief executive officer.
The FSCA emphasised that, as South Africa’s largest asset manager and an authorised FSP, the PIC is expected to uphold the highest standards of governance, integrity, and accountability.
FSCA launches investigation into FXNovus
The FSCA announced an investigation into FXNovus (Pty) Ltd (FSP 50963) and its key individuals and directors, namely Paul Anthony Baise, Clint Martin Reinertsen, and Ori Mishkal. The investigation follows a number of client complaints relating to FXNovus’s intermediary services and its trading platform, which offers Contracts for Difference.
The FSCA stated that the investigation will assess whether any financial sector laws have been contravened, including provisions under the Financial Markets Act. The regulator emphasised that the investigation remains ongoing and that no findings have been made at this stage. The FSCA has indicated that it will provide a further update once the investigation has concluded.
FINANCIAL INTELLIGENCE CENTRE (FIC)
FIC launches new cross-border cash reporting regime
The FIC has announced the commencement of section 30 of the Financial Intelligence Centre Act with effect from 1 July 2026, introducing a new Cash Conveyance Reporting regime. Travellers entering or leaving South Africa carrying cash, goods, currency, and/or bearer negotiable instruments exceeding R100,000 must now declare these through the SARS Traveller Management System.
The FIC says the new reporting stream will strengthen efforts to detect and combat illicit cross-border financial flows, support anti-money laundering and counter-terrorist financing measures, and help South Africa meet its international obligations to the Financial Action Task Force (FATF).
SOUTH AFRICAN RESERVE BANK (SARB)
SARB annual report 2025/2026
The SARB’s 2025/26 annual report reflects a mixed but improving economic environment, with growth stabilising, investor confidence improving, and progress being made on key structural reforms.
Encouragingly, South Africa saw lower borrowing costs, tighter risk spreads, a stronger rand, a credit rating upgrade, and removal from the FATF greylist, indicating stronger financial credibility.
However, global geopolitical tensions, particularly in the Middle East, drove higher fuel prices, placing upward pressure on transport and food costs and contributing to renewed inflation risks.
The SARB continued to prioritise its constitutional mandate of price stability and financial system resilience, supporting the adoption of a lower 3% inflation target and reinforcing policy credibility.
Key financial and operational highlights include:
- Inflation averaged 3.2% in 2025.
- Group profit before tax of R11 billion, with R6.5 billion transferred to reserves.
- Continued modernisation of payment systems and strengthening of financial regulation and supervision.
The report also marks the first year of the SARB’s Strategy 2030, with strong progress in anchoring inflation, safeguarding financial stability, leveraging technology, and promoting institutional trust and transformation.
Overall, the SARB emphasised its commitment to navigating global volatility while maintaining macroeconomic stability and supporting sustainable economic growth in South Africa.
PRUDENTIAL AUTHORITY
Prudential Authority (PA) annual report 2025/2026
The PA’s 2025/2026 annual report highlights its continued focus on strengthening the resilience and stability of South Africa’s financial system amid global economic uncertainty and market volatility.
Key achievements during the period include the completion of Basel III reforms, reinforcing the robustness of the banking sector, and contributing to South Africa’s exit from the FATF greylist, thereby enhancing the country’s financial integrity and global standing.
The PA maintained a risk-based, forward-looking supervisory approach, assessing the resilience, governance, and risk profiles of banks, insurers, and financial market infrastructures. While the financial system remains stable, the PA emphasised heightened global risks from geopolitical tensions, economic uncertainty, and policy shifts.
Regulatory activity included licensing, fit-and-proper assessments, and enforcement actions, with 166 non-compliance referrals considered during the year, highlighting the PA’s commitment to strong regulatory oversight and market discipline.
CORPORATION FOR DEPOSIT INSURANCE
Corporation for Deposit Insurance (CODI) annual report 2025/2026
The CODI reported a year of consolidation and operational progress following its launch in April 2024, reinforcing its role as a key pillar of South Africa’s financial safety net.
A major milestone was CODI’s first depositor payout after Ditsobotla Mutual Bank was placed into resolution in August 2025. Approximately R7 million was reimbursed to covered depositors within 20 days.
CODI continues to protect qualifying depositors up to R100,000 per depositor per bank, with around 90% of depositors fully covered under this threshold.
As at March 2026, CODI had 35 member banks, reflecting broad industry participation.
Looking ahead, CODI’s Strategy 2030 focuses on strengthening operational readiness, enhancing resolution support capabilities, maintaining adequate funding levels, and improving public awareness of deposit insurance protection.
A-PROOFED
I can usually predict the email before I even open it.
“Hi Kim. I know this is terribly last minute, but…”
I know the client. In fact, I know several.
They spend weeks – sometimes months – working on an important document. Everyone has had their say, countless versions have been circulated, and there have been endless meetings to debate wording that will probably change again tomorrow. Someone insists on changing a comma to a semicolon. Someone else changes it back again. After all that, the final version is only ready just before the deadline.
The next sentence is usually something like, “It’s only 127 pages.”
Sometimes it’s a board report due the next day. Sometimes it’s a compliance document that’s taken months to prepare. And yet, when the deadline looms, proofreading is suddenly the easiest thing to sacrifice.
The logic usually goes something like this: “We’ve run out of time, so we’ll skip the proofreading.”
Unfortunately, that’s rather like deciding not to lock your front door because you’re already late for work.
Here’s the irony: proofreading isn’t what caused the delay. It’s everything that happened before it.
The extra meeting. The sixteenth round of amendments. The colleague who had “just one more change”. The version that mysteriously disappeared. The email that sat in someone’s inbox for three days. By the time the document reaches me, proofreading is expected to make up for all that lost time.
What many people don’t realise is that proofreading doesn’t necessarily require days. A professional proofreader isn’t reading the document to work out what you’re trying to say. I’m looking for the things you’ve stopped seeing because you’ve read the same document so many times that your brain knows what should be there and fills in the gaps.
Your brain knows what you meant to write. Mine only sees what you actually wrote.
That’s why you’ll read the same sentence five times without noticing a missing word, while I’ll spot it immediately. The same goes for duplicated words, inconsistent headings, formatting glitches, incorrect cross-references, and the client’s name that’s been spelled in two different ways. Yes, that does happen!
The biggest misconception is that proofreading is just spellcheck with a pulse. It isn’t. It’s the final quality check that catches what technology can’t and tired eyes no longer see.
And then there’s the inevitable, “Oh well, we’ll quickly put it through ChatGPT.”
ChatGPT can be incredibly useful. But it isn’t a substitute for someone who knows what to look for. It won’t necessarily spot that page 47 refers to a section that doesn’t exist, or that the heading on page 83 doesn’t match the table of contents. And it certainly doesn’t know what Bryan is going to pick up at the monitoring visit.
Come on, guys. You work in a heavily regulated industry. You all know Bryan, and nobody wants him spotting an error that should have been picked up long before the monitoring visit.
The good news is that there is almost always time to proofread. It may not be enough time for a leisurely review, but it’s often enough time for an experienced proofreader to make a real difference.
I’ve lost count of the number of times someone has told me, “We’ve left it too late”, only to discover there was enough time after all. I’ve also lost count of the number of times I’ve found an error in the first paragraph.
So, the next time someone says, “There’s no time to proofread”, ask yourself a different question: Is there really no time, or have we simply decided that proofreading is the easiest thing to cut?
Because once you’ve pressed Send, there isn’t an “Undo” button for the recipient who’s already opened it.
I’ll catch the typos. You take the credit.
083 657 3377 | kim@a-proofed.co.za
www.a-proofed.co.za
