Finance Minister Malusi Gigaba says he will soon release regulations aimed at implementing the Twin Peaks System for public comment.
“I will shortly be releasing for public comment draft transitional regulations to begin the process of implementing the Twin Peaks system.
“We are on track to create two new authorities in the 2018/19 financial year,” he said.
Tabling his first Medium Term Budget in the National Assembly on Wednesday, the Minister said the implementation of the Twin Peaks system of financial regulation will bring the much needed reform to the financial services sector.
He said it will create a new regulator for market conduct, which will substantially improve the way financial institutions treat their customers.
“For too long, consumers have been sold inappropriate products, and face high costs and a wall of opaqueness.
“For example, one of the furniture chains sold retrenchment insurance to retired people,” he said.
The Minister said there was a need for a transformative financial sector – a sector that is not only transformed, but one that is also transformative of the economy.
“The Standing Committee on Finance has done excellent work over the past few months holding hearings on all aspects of financial sector transformation.
“There is consensus that more can be done in transforming the sector.
“Their draft report carefully balances the competing interests of the nation as a whole, foreign investors, borrowers, lenders and ordinary South Africans,” he said.
The Minister said the report will assist in preparing for the Financial Sector Summit that he hopes will be held early next year.
He said the Summit would help government to take stronger steps in developing appropriate targets for the Financial Sector Charter, which accelerate broader transformation.
“In the interim, Minister [Rob] Davies and I support the latest version of the financial sector charter where all stakeholders have developed Sector codes in an integral and strategic vehicle to advance transformation in the economy at sectoral level.
“Sector codes provide sector stakeholders an opportunity to develop a common vision for the growth and transformation of their sector.
“The new financial sector code, supported by all stakeholders, sees transformation as being about not only ownership, but also skills development, targets for empowerment finance, access to credit, management control and the provision of services to previously underserved areas.” - SAnews.gov.za
