The National Treasury has invited public comments on the second draft of the Conduct of Financial Institutions (COFI) Bill, published on September 29.
The first draft of the Bill was published for comment in December 2018.
The second draft of the Bill is accompanied by a response document that explains key changes made to the first draft of the Bill, in response to comments submitted and engagements held.
Treasury says it aims to finalise the Bill after taking into account the second round of comments. It will then submit the Bill to Cabinet for approval and tabling early next year.
The COFI Bill is a key pillar in the government’s Twin Peaks financial sector regulatory reform process that aims to entrench better financial customer outcomes in the South African financial sector.
It is a financial institution-facing law that sets requirements for financial institutions to meet and outcomes to deliver.
The Bill aims to significantly streamline the legal landscape for conduct regulation in the financial services sector and to give legislative effect to the market conduct policy approach, including implementation of the Treating Customers Fairly principles.
Key changes made between the first and second drafts of the COFI Bill include: application of the Bill in relation to existing legislation; approach to conduct standards; focusing transformation to tangible targets; approach to medical schemes sector; alignment to financial markets review; and application to the non-retail market.
The comment period will close on October 30.