FSCA Regulatory Entity

FSCA Regulatory Entity
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FSCA, The Financial Sector Conduct Authority, is a market conduct regulator of financial institutions. It regulates financial institutions licensed in the financial sector law and provides financial services and products to the market.

Structures regulated by FSCA include insurers, administrators, banks, market infrastructures, and retirement funds. FSCA is responsible for assisting the financial stability and conducting supervision and Regulation of the market.

FSCA’s goal is to provide financial customers education and protection by the financial institutions. In addition, it ensures the integrity and efficiency of the market so that the financial intuition promotes fair treatment for their customers.

FSCA history

On 1st April 2018, the Financial Sector Conduct Authority (FSCA) was established to replace the Financial Services Board. It was established by Financial Sector Regulation Act 9 of 2017 to become a market conduct regulator of financial institutions.

FSCA Mission and Vision

The Financial Sector Conduct Authority’s mission is to ensure the protection of financial customers and the stability and efficiency of the market. And it makes sure that the one who abides by the rules and regulations of the market or affects the market’s well-being will be held accountable for his actions.

Moreover, FSCA is looking forward to a financial market that is more stable and efficient where customers are more informed and well treated by the financial institutions.

FSCA Regulatory Entity

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FSCA has specific values that create a stable financial market. The FSCA’s values include:

  •      Diligence
  •      Agility
  •      Perseverance
  •      Camaraderie
  •      Integrity
  •      Fairness

FSCA roles

The Financial Sector Conduct Authority recently added its Perimeter Report to clarify its roles and activities to regulate financial institutions. The primary roles of the FSCA in conducting market regulation includes:

  • Promotes the integrity and efficiency for a stable financial market.
  • Inform and protect the financial customers by ensuring their fair treatment by the financial institutions.
  • Enhance the financial information and education of their customers.
  • Assist the market in maintaining financial stability.
  • Investigate and hold accountable to the ones who restrict the well-being of financial customers in the market.

FSCA strategic focus

The Financial Sector Regulations of 2017 added to the authority of FSCA and included the supervision of financial services and products that the FSB did not control previously. Financial products and services regulated by FSCA include collective insurance schemes, financial advisors, services related to credit and retirement funds, buying and selling of foreign exchange, credit rating agencies, and life and non-life insurers.

Due to the addition of the responsibilities for conducting market regulation, FSCA needs to change the traditional FSB compliance-driven model into a focused, proactive, risk-based approach and a pre-emptive model to achieve efficiency.

Significantly, a new model should have transformation and financial inclusion in the overall objectives of the financial market. So FSCA strategic focus areas include:

  • A transformed and inclusive financial market
  • Building a new organization
  • A robust regulatory model that facilitates fair treatment for financial customers.
  • Reinforcing integrity and stability of financial sectors.
  • Foster informed and knowledgeable financial customers.
  • Introducing new strategies for regulating the market and for innovative technologies.

Informed financial customers of FSCA

The core element in the responsibilities of FSCA is the protection of the existing consumers and potential customers of the financial market. While, FSR Act was listing the regulatory and enforcement measures such as sanctions, administrative actions, debarment orders, court orders, etc. It highlights the responsibilities of FSCA in which the main element is the responsibility of customer education that is a preemptive means of their protection. So Financial Sector Regulation Act ensures the defence of their customer’s rights in the financial services sector.

Further, FSR introduces a world-first institution that regulates financial customer education to encourage the conducting authority to create standards for customer education applied to the financial services sector. The institutions shared these standards over the next year of launching. The standards written will enhance the monitoring, coordination, evaluation, and best practices of the financial sector.

One of the FSCA customer regulation initiatives is Taking Regulation to the People, which increases regulators’ access to financial customers and regulated entities. FSCA is also implementing and arranging national financial education projects like Financial Literacy Schools Speech Competition and Money Smart Week. Further, it collaborates with the Department of Public Works to give financial education to the Expanded Public Works Programme (EPWP).

Regulated entities

Regulated entities will have an opportunity to interact with the regulator regarding different applications such as licensing, exemptions and amendments etc. They have to interact with the regulator to exchange information, make inquiries, consult on the documents and guidelines, and collaborate on regulatory matters.

Registration and Licensing

Registration or licensing is an essential component of a regulatory framework and gives a key role in supervising financial institutions. In addition, it promotes and provides an entrance evaluation to the applicants to start conducting financial services in the market. Therefore, the licensing system must be robust and efficient.

Also, it is essential to understand that licensing requirements vary for different entities. Therefore, no “one-size fits all” registration approach sets licensing requirements proportionally for all applicants. So, the criteria for selecting entities will be proportionate directly to the risk associated with them.

E-services

To ensure the effectiveness and efficiency of the mechanism set for compliance and supervision. As a result, different online portals have been launched in the industry and for regulated entities.

Supervisory Information

Documents, guidelines, and information are compulsory for the registration and supervision of financial products and services and the highlighted requirements for each regulated entity that wants to conduct the financial services in the financial sector.

Bottom line

The key objective of FSCA is to reduce the barriers that limit the participation of people in the financial market. It provides products and services to consumers that improve their lives. Mainly, it focuses on removing that population struggling to make money and growing the country’s debt level.

So FSCA is engaged in the activities that evaluate and monitor the impact of customer education in the financial sector. Creates initiatives that maximize the customer’s impact on the market. It Encourages regulated frameworks for the sustainable development of the financial sector.

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