Premature agreement between FSCA and BEE Commission – Solidarity
26 March 2024
The recent announcement of an agreement between the Financial Sector Conduct Authority (FSCA) and the BSEB Commission of the Department of Trade, Industry and Competition has caused a wave of concern in the financial sector. Solidarity is opposed to this premature agreement which sets transformation requirements for financial institutions as the Conduct Standard for Financial Institutions Bill (the CoFI Bill) has not yet been ratified.
The CoFI Bill which regulates the conduct of financial institutions is a state-centralised component in the regulation of the financial sector and it will hold adverse consequences for this sector.
The CoFI Bill has not yet been ratified. It is currently before parliament. The necessary input from the public and the sector itself has not yet been provided. Solidarity is ready to fight the CoFI Bill at every public hearing, and we will submit the necessary comments as soon as public participation for this proposed bill opens.
Solidarity also believes that this agreement should be considered invalid, as the proposed bill has not yet been enacted.