The FSB is the South African government’s agency responsible for financial regulation that oversees, supervises and regulates the non-banking financial services industry operating within South Africa. The FSB’s duties include regulating the Johannesburg Stock Exchange, which is the largest stock exchange situated in Africa.
The FSB consists of a board and several committees that collectively oversee its operations. The FSB’s executive officer is appointed by this board and presides over the agency’s daily activities. In addition, four deputy executive officers supervise oversight of the Financial Advisory and Intermediary Services, Retirement Funds and Friendly Societies, Insurance, and Investment Institutions segments of the agency’s regulatory mandate.
The FSB also funds the Offices of the FAIS Ombud and the PFA, which are both independent from the FSB but form the same regulatory framework the FSB operates within. They are responsible for handling complaints from financial services consumers made under their respective Acts.
The recommendations of the Van der Horst Committee led to the establishment of the FSB in 1991. It was intended to be an independent agency that would regulate and supervise the non-banking financial services sector.
Later legislative acts expanded the FSB’s responsibilities. September 2004 saw the FSB’s mandate broaden to include some aspects of banking industry conduct in the financial markets as a result of the passage of the Financial Advisory and Intermediary Services Act or FAIS. In 2001, the Financial Intelligence Centre Act (2001) increased the FSB’s responsibilities to fight money laundering activities.
Location and Jurisdiction
The FSB is an independent South African government regulatory agency that oversees the South African financial services industry, excluding banks, and its operational jurisdiction is located inside the borders of the nation of South Africa
The FSB operates out of its main headquarters located in Pretoria, South Africa, and its official website is situated at: http://www.fsb.co.za.
The FSB has the responsibility to regulate and oversee all non-bank financial intermediaries operating in South Africa. This group includes: capital markets, financial services providers, collective investment schemes, insurance companies, short and long term re-insurers, Lloyd’s correspondents, retirement funds, nominee companies, other credit agents, and friendly societies.
Furthermore, the FSB’s mandate includes ensuring that all regulated entities comply with applicable legislation and that they fulfill the capital adequacy requirements. The agency’s goal in doing so is to support these entities’ financial soundness and protect the community of investors.
The FSB also operates a service for customer complaints as well, as an appeals board appointed by the Ministry of Finance that operates independently and where those who wish to oppose an FSB decision can request its review.
FSB in the News
The head of the FSB spoke out on the subject of corruption at his agency.