South Africa has one of the best financial services sectors in the world and the most advanced in Africa. The sector’s success and growth are characterised by high digital adoption, with 28,9 million credit-active consumers as of March 2025. The sector supports a robust and innovative banking industry (major banks holding >83% market share) and a vast asset management industry, with over R6 trillion in assets held by insurers and pension funds.
The evolution of the financial services sector from traditional to digital is not only due to innovation, but there are also several key factors, including compliance. The sector is one of the most heavily regulated, with the Financial Sector Conduct Authority (FSCA) enforcing strict compliance. This not only affects the big financial companies, such as banks, but also smaller players such as fintech startups and small to medium-sized enterprises (SMEs) operating in the sector.
In this article, we look at the regulatory bodies that oversee the financial sector and the laws that guide their enforcement.
South African Financial Sector Regulators
South Africa’s financial sector uses a ‘twin peaks’ model for regulation by separating prudential and market conduct supervision, with the South African Reserve Bank (SARB) anchoring financial stability.
Financial Sector Conduct Authority (FSCA)
The FCSA is South Africa’s market conduct regulator across banks, insurers, intermediaries, retirement funds and financial market infrastructures. The organisation sets, supervises and enforces conduct standards such as Treating Customers Fairly (TCF) outcomes, product governance, distribution, and disclosure.
What the FSCA Supervises
- Financial Advisory and Intermediary Services Act (FAIS Act), licensing of financial services providers (FSPs), fit-and-proper requirements for key individuals and representatives.
- Conduct Standards under the Financial Sector Regulation Act (FSR Act) and sector laws (e.g., Insurance Act) covering product design, conflicts of interest, disclosure, complaint handling, and incentives.
- Financial Markets Act oversight for market infrastructures and conduct in financial markets.
Key Legal Instruments of the FSCA
- FSR Act, 2017; FAIS Act, 2002; Insurance Act, 2017; Financial Markets Act, 2012; FSCA Conduct Standards and Guidance.
- Conduct of Financial Institutions (COFI Bill), which focuses on fair customer treatment, strengthening governance, promoting financial inclusion, and enforcing accountability.
Prudential Authority (PA) — within the South African Reserve Bank
The core role of the PA is the prudential regulation and supervision of banks, mutual banks, insurers, and financial conglomerates.
What the PA Supervises
- Capital and liquidity (Basel framework), governance and risk management, ICAAP/ORSA (for insurers), large exposures and related-party limits.
- Group-wide supervision, recovery planning, and (with SARB’s Resolution Authority) resolvability.
Key Legal Instruments of the PA
- FSR Act, 2017; Banks Act, 1990; Mutual Banks Act, 1993; Insurance Act, 2017; Financial Sector Laws Amendment Act, 2021 (resolution and deposit insurance framework).
SARB — South African Reserve Bank (system-level mandates)
The core role of the SARB is to enforce monetary policy, financial stability, be a lender of last resort, provide oversight of the national payment system, exchange control policy, and resolution.
What the SARB Supervises
- Supervision of banks, mutual banks, and co-operative banks to ensure they are financially sound.
- Regulation of life insurers and other financial institutions through its Prudential Authority.
- Monitoring of clearing and settlement systems (e.g., SAMOS) to reduce systemic risks.
- Supervision of authorised foreign exchange dealers and sellers/redeemers of travellers’ cheques.
- Oversight of systems that facilitate fund transfers and transactions.
- Ensuring banks comply with the Financial Intelligence Centre Act
Key Legal Instruments of the SARB
- SARB Act, 1989; National Payment System Act, 1998 (directives/position papers); Exchange Control Regulations; FSR Act; Financial Sector Laws Amendment Act, 2021.
Financial Intelligence Centre (FIC)
FIC is South Africa’s financial intelligence unit for combating money laundering, the financing of terrorism and the financing of proliferation of weapons of mass destruction (AML/CFT/CPF). Additionally, it issues guidance, receives/analyses regulatory reports, and supports enforcement via supervisory bodies.
The FIC sets the AML/CFT/CPF framework and intelligence, while sector supervisors (e.g., PA for banks/insurers, FSCA for certain FSPs) supervise compliance with the FIC Act in their populations.
What the FIC Supervises
- Risk-based AML/CFT/CPF controls for governance, enterprise and customer risk assessment, RMCPs, CDD/EDD, record-keeping, training, and independent assurance/effectiveness testing.
- Reporting the following obligations under the FIC Act and Regulations:
1. Suspicious and Unusual Transaction Reports (STRs).
2. Cash Threshold Reports (CTRs) and aggregated CTRs.
3. Terrorist Property Reports (TPRs) and implementation of targeted financial sanctions (FIC Act ss 26A–26C). - International Funds Transfer Reports (IFTRs) — phased implementation; check current go-live and scope for your entity type.
Key Legal Instruments
- International Funds Transfer Reports (IFTRs) — for any electronic cross-border transaction of R20 000 or more (inbound or outbound).
National Credit Regulator (NCR)
The NCR enforces the National Credit Act (NCA) across credit providers (including banks), credit bureaus, and debt counsellors.
What the NCR Supervises
- Affordability assessment regulations and reckless lending prohibitions.
- Credit marketing and disclosure rules; pre-agreement statements and quotations.
- Debt counselling process oversight; credit information accuracy, retention, and dispute handling.
Key Legal Instruments
- National Credit Act, 2005 and regulations; NCR guidelines and enforcement notices.
Information Regulator — POPIA and PAIA
The information regulator is in charge of regulating personal information processing under the Protection of Personal Information Act (POPIA) and access to information under the Promotion of Access to Information Act (PAIA).
What the Information Regulator Supervises
- Lawful processing, purpose limitation, minimisation, security safeguards, cross-border transfers, and processor (operator) contracts.
- Mandatory security breach notifications to the Regulator and affected data subjects immediately
- PAIA compliance for proactive publication and access to records.
Key Legal Instruments
- POPIA, 2013; PAIA, 2000; Codes of Conduct and Enforcement Notices issued by the Information Regulator.
Additional Financial Sector Bodies
Corporation for Deposit Insurance (CoDI)
An entity in the SARB Group implementing South Africa’s deposit insurance scheme under the Financial Sector Laws Amendment Act (FSLAA). For banks the CoDI impacts coverage parameters, funding/levies, depositor single customer view, and payout readiness testing.
Payments Association of South Africa (PASA)
The recognised Payment System Management Body under the NPS Act sets participation, scheme and PCH rules, and technical standards across payment streams. Impacts on banks include scheme adherence (e.g., EFT, debit orders, cards, real-time payments/PayShap), dispute/fraud collaboration, and readiness for modernisation (including ISO 20022).
Ombud Council
Established under the FSR Act to designate and oversee financial ombud schemes and harmonise standards. It includes the National Financial Ombud Scheme South Africa, FAIS Ombud, Credit Ombud, and others.
National Treasury
The National Treasury leads financial sector policy and legislative reform.
Intergovernmental Fintech Working Group (IFWG)
The IFWG is a collaboration among SARB, FSCA, FIC, National Treasury, and others on fintech policy and experimentation.
Co-operative Banks Development Agency (CBDA)
The CBDA is the organisation that supports the development and supervision of co-operative financial institutions (CFIs) under the Co-operative Banks Act. As of October 1, 2024, the CBDA was merged into the Small Enterprise Development and Finance Agency (SEDFA), alongside Seda and Sefa, to form a consolidated entity under the National Small Enterprise Amendment Act.
Enforcement Partners for Financial Crime
Directorate for Priority Crime Investigation (DPCI/Hawks) and SAPS Commercial Crimes work with the FIC and supervisors on serious financial crime matters.
