Financial Services Board

Introduction

The FSB came into existence in 1990 as an independent body to supervise and regulate the non-banking financial services industry in South Africa. The FSB 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.

The FSB has developed and maintained a strong, effective presence in the regulatory field over the past years in South Africa and internationally, while working closely with its counterparts to establish equally tenable regulatory frameworks elsewhere in Africa. The FSB has gained a sound understanding of regulatory issues and acquired competent staff and a good level of support and co-operation from the industries and institutions under its supervision. This in turn has created the right platform for achieving efficiency and effectiveness, both in the specific context of its statutory (supervisory and advisory) role, and in the wider context of the public interest, promoting soundness and efficiency in the financial institutions the FSB supervises, including the promotion of investor protection. 

Vision of the FSB 

The FSB vision is to promote and maintain a sound financial investment environment in South Africa.

Mission of the FSBFSB building

The FSB mission is:

  • To continuously develop an effective regulatory framework
  • To ensure effective supervision of our regulated entities
  • To facilitate consumer education regarding financial products and services
  • To collaborate with other government agencies, both locally and internationally
  • To comply with international standards
  • To promote effective competition in the industry
Values and guiding principles

We at the FSB act professionally at all times in all that we do and say. To this end, we always undertake to:

  • Demonstrate the highest level of technical competence
  • Conduct all our business in the highest level of confidence
  • Collaborate effectively as team members to deliver effective services
  • Enhance stakeholder synergy through collaboration
  • Apply the regulatory framework in a consistent and fair manner
  • Treat all with respect and empathy
 
FSB Board, Executive and staff

The Minister of Finance appoints members of the FSB Board, with the inclusion of the chairperson of the Board, and the executive officers of the FSB. The members are representative of the industry the FSB supervises and their term of office is three years. Currently ten members serve on the Board.

The FSB’s Executive consists of the Executive Officer, Mr. Dube Tshidi, four Deputy Executive Officers and a Chief Actuary. The FSB’s Coordinating Committee consists of the FSB Executive and the Heads of Department.

The Executive appoints all staff of the FSB and has its own conditions of employment, which are independent from Government. This enables the FSB to attract skilled people to maintain and provide efficient and effective supervisory services. Members of staff have to comply with the prescribed FSB staff rules.

Scope of regulation

The FSB supervises the exercise of control over financial institutions and services in terms of 12 Parliamentary Acts. These Acts entrust regulatory functions to various Registrars whose functions converge in the Office of the Executive Officer.

 The South African regulatory structure corresponds remarkably well with the model of the European Union. The financial regulation of the FSB is divided into the provident institutions and investment institutions. The FSB regulates the following institutions:

  • Capital Markets, i.e. financial exchange, central securities depository and clearing houses
  • Collective Investments Schemes
  • Financial advisers and financial intermediaries/ investment managers
  • Short term and long term insurance companies
  • Pensions/ Retirement funds

The Board is also responsible for the prosecution of market abuse practices, such as market manipulation and insider trading (the FSB is assisted by a Directorate Market Abuse) and the launching of consumer education programmes.

The Executive Officer has formal powers of investigation with criminal sanction in the event of obstruction, and can apply to court for an interdict or curatorship of financial institutions if necessary. He can, in certain circumstances, also apply for the winding or placing under judicial management of certain financial institutions, such as insurers and pension funds.