The Prudential Authority (PA) has released its Regulatory Strategy for the period 2018–2021.
The release is in accordance with the provisions of section 47 of the Financial Sector Regulation Act 9 of 2017 (FSR Act).
“This Regulatory Strategy provides information regarding the PA’s approach to regulation and supervision, the principles that will guide its regulatory and supervisory decisions, the PA’s key priorities over the next three years, and the key outcomes that the PA intends to achieve in order to realise its objectives,” the South African Reserve Bank said in a statement on Friday.
The Prudential Committee of the PA is required to adopt a regulatory strategy to give general guidance to the PA in the achievement of its objectives and the performance of its regulatory and supervisory functions.
The committee is chaired by SARB Governor Lesetja Kganyago and also comprises his deputy Kuben Naidoo, who is also the PA’s chief executive, as well as two other SARB deputy governors.
“The Prudential Committee will review the regulatory strategy annually and may amend the strategy accordingly. The committee shall endeavour to communicate any amendments timeously and in an open and transparent manner to assist with the transition of the financial sector regulatory landscape into the Twin Peaks architecture,” the SARB said.
As required by the FSR Act, the PA has concluded memorandums of understanding (MoUs) with the Financial Sector Conduct Authority, National Credit Regulator, Financial Intelligence Centre and the SARB. The MoUs will be published sooner, the central bank said.
“Effective cooperation, coordination and collaboration between the different regulators and the SARB is crucial for the optimum functioning of the Twin Peaks regulatory framework to ensure effective alignment and efficiencies in the regulatory and supervisory approaches,” the Reserve Bank said.
Having come into effect in April this year, the PA operates within the administration of the South African Reserve Bank.
It consists of four departments -- Financial Conglomerate Supervision Department; Banking, Insurance and Financial Market Infrastructure Supervision Department; Risk Support Department; and Policy and the Statistics and Industry Support Department.
According to the South African Reserve Bank, the PA is responsible for the regulation of banks, insurers, cooperative financial institutions, financial conglomerates and certain market infrastructures. - SAnews.gov.za
