Global financial services regulatory guide baker mckenzie. The regulation and ethics of the south african financial markets compulsory module. This paper discusses the theory of financial regulation and practices in countries and south africa in particular. Saifm the south african institute of financial markets. The international banking crisis and domestic financial. The fsa is part of a tripartite model the treasury, the bank of. Financial regulation is a topic that does not enjoy a widespread or thorough understanding. Revisitingfinancial servicessectortransparency through. Ggazette, rgregulation gazette, bnboard notice, gengeneral notice, gongovernment notice, pproclamation wwarrant. South africas developing financial markets regulation. The impact of regulation of the south african asset management industry i declare that the above dissertation is my own work and that all the sources that i have used or quoted have been indicated and acknowledged by means of complete references. The industry, persons, learning institutions, professional bodies, industry associations, training providers, employers fsps may submit qualification applications to the registrar for recognition as part of the new fit and proper requirements for consideration.
It is often regarded as obscure, arcane and yet another level of bureaucracy that has to be endured by the private sector. Through its participation in the foreign exchange subcommittee of the financial markets liaison group fmlg, the aci played a constructive role in ensuring that we could complete the project around the south african rand fixing page, which is now being published on the jse website. Republic of south africa conduct of financial institutions bill as introduced in the national assembly proposed section. Financial markets the practice exam for the regulation and ethics of the sa financial markets module is intended to enhance learning and provide learners a formative assessment tool whereby their progress can be gauged reliably and at the same time provide a learning aid to improve their knowledge and understanding of the learning material. Application of provisions of financial sector regulation act to licensing part 2 requirements for licensing of financial institutions. The south african money market an employee of a trading member who executes transactions in interest rate derivatives traded on the jse interest rate and currency trading system must pass the following registered persons examinations modules. Regulation and ethics of the south african financial markets module of the from adifm 101 at university of johannesburg. Recently, video and podcast material has been added to the site, including indepth video interviews with some of south africa s leading opinion makers. Regulation of market conduct and trading seeks to ensure fair access and adequate price formation, thus preserving the market s efficiency and reputation. Nov 21, 2019 produced in partnership with the african securities exchanges association, this collection of essays includes the perspectives of authors in local markets who provide their analysis of the history, current developments, and future outlook for south africa, nigeria, mauritius, ghana, zimbabwe, morocco, egypt, botswana, and east africa. Market conduct the banking association south africa. Participants should be able to buy or sell the products they want, in the volumes they require, and at true market prices.
The regulation of financial markets south african institute. Otc derivatives regulations are final and in force. The market conduct division advocates for the interests of the banking industry regarding legislation and regulation affecting their customers and clients. Regulation and ethics of the south african financial markets. An independent body, it is responsible for the regulation of financial markets and institutions, including insurers, fund managers and brokering operations. South africa financial system stability assessment prepared by the monetary and capital markets and african departments approved by herve j. The regulation of the accountancy profession in south africa. The workshop provides an introduction to the principal elements of the regulatory environment for south african financial markets. An overview shakill hassany october 20 abstract this paper presents a overview and discussion of facts and research ndings on south african equity, currency, bond and derivatives markets.
Regulatory change is upon us and it cannot be avoided kpmg. The introduction of a new financial services regulatory model. Financial markets journal the south african financial. The enactment of the fma regulations has got the ball rolling on the implementation of the regulation of the otc derivatives market in south africa and market participants should expect the relevant subordinate legislation still currently in draft form to be published in final form soon. Regulation of financial markets market efficiency is usually concerned with the liquidity, fairness and orderly trading of markets. The institute of directors in southern africa and the king committee on corporate governance in south africa acknowledge with appreciation those who support king iv and corporate governance in south africa through their endorsements. Promoting the effective functioning of the domestic financial markets and contributing to the banks financial stability mandate through effective market monitoring, gathering of market intelligence and ensuring the banks activities in the markets support financial stability. The official financial regulation journal of saifm. Regulation and ethics financial regulation journal.
Before that she was with national treasury, nedbank, deloitte, teba bank now ubank, absa securities and absa capital. Regulation and ethics of the sa financial market introduction to financial markets the derivatives market the south african forex market an employee of a trading member who executes transactions in currency derivatives traded on the jse interest rate and currency trading system must pass the following registered persons examinations modules. The south african banking sector has undergone significant changes and developments over the past few years, particularly in the regulatory environment with the enactment of several new laws and the promulgation of a host of new regulations that will play an important role. The international banking crisis and domestic financial intermediation in emerging market economies. Each endorsement indicates support for the principles as. South african reserve bank or go to the reserve banks website. The south african reserve bank sarb and the financial services. The 2008 crisis, which had a disastrous effect in many countries, proved that the south african financial sector is well regulated compared to many other developed countries. Financial regulation in south africa south african reserve bank. Appropriate regulation of the profession is a key instrument to achieve these goals. Saifm is the leading professional institute for financial markets practitioners offering prescribed exams assessments for various roles and functions in the securities markets and such ancillary services as may promote professionalism and integrity in the financial markets. As a member of the g20, south africa has also made progress in meeting south africas obligations regarding otc derivatives by establishing the necessary regulatory framework in the form of the. Strong financial regulation and supervision in banks to ensure efficiency in. Registrar and deputy registrar of securities services chapter iii exchanges licensing of exchange 7.
To provide for the regulation of financial markets. The regulation of financial markets what is it about. Ggazette, rg regulation gazette, bnboard notice, gengeneral notice, gongovernment notice, pproclamation wwarrant. Markets also allow these businesses to offset risk. South african tax law has undergone several significant changes of late. Regulation and ethics of the sa financial market introduction to financial markets the bond market the south african money market an employee of a trading member who executes transactions in bonds traded on the jse interest rate and currency trading system must pass the following registered persons examinations modules. Saifm is the leading professional institute for financial markets. It is equally encouraging that south africa, while largely sheltered from the global financial crisis, is embarking on measures to limit the risk of such crises occurring locally in the future, including strengthening market conduct regulations as part of the move to a twin peaks system of regulation. Home publications and notices financial regulation in south africa. Policy on the reproduction of images of south african currency. The financial markets act will be covered in detail as well as conflicts of interest and the enforcement of financial regulations. Impacts of deregulation on the airline industry in south. African markets have experienced rapid transformation but face.
This new financial sector regulatory model is commonly referred to as the twin peaks model. Aug 01, 2012 understanding south african financial markets by karin van wyk, ziets botha, i. S 1, 7, 47, 49, 54, 56 amended by financial services laws general amendment act 45 of 20 from 28 feb 2014. Forum of accounting bodies fab towards the regulation of the accountancy profession in south africa and suggests a way forward to devise and implement an efficient and effective form of regulation of the. Financial markets create an open and regulated system for companies to acquire large amounts of capital. Regulation and ethics of the south african financial markets module of the registered persons examination of the south african institute of financial markets. Ethics in finance and financial markets address by mr daniel mminele, deputy governor of the south african reserve bank, to the south african chapter of aci the financial markets association, johannesburg, 28 october 2014. This book, which is the first comprehensive analysis of financial integration and regulation in africa, fills a huge gap in the literature on financial regulation and would constitute an invaluable source of information to policy makers, investors, researchers and students of financial regulation from an emerging and frontier markets perspective. King iv report on corporate governance for south africa.
Code of conduct for the south african over the counter markets 1 foreword the recent problems besetting the international financial markets, and in particular the foreign exchange markets, highlighted the need for more involvement by legislators and regulators in previously largely unregulated markets. South africa and egypt, african stock markets remain the smallest of any region, both in terms. Understanding south african financial markets 2012 edition. Pdf diverse, with different regional economic blocs.
Financial regulation in south africa south african. University of fort hares policy on research ethics and i have taken every. Regulation of banking and financial markets 585 hence, the basel committee took remedial actions, and after long negotia tions, the new basel ii capital accord came into force in 2008. On the other hand, and in connection with capital markets, any public offering of securities. Mar 23, 2015 this is driven by the fact that the financial services board fsb takes a thorough approach to regulation, recognizing the scale and development of the south african market and the need for effective market conduct as well as prudential regulation. In a rapidly changing financial services environment, where focus remains on issues such as capital and liquidity management, the changing regulatory landscape, cost reduction and an evolving digital world. The study showed that deregulation has benefited passengers by including a wider variety of airlines to choose from and more. The underlying rationale for financial regulation in the wake of the current. Governance issue to be addressed recommendation corporate and risk governance practices 1.
Financial markets transactions 2 credits the purpose of this module is to familiarise the student with the function of regulation in south africa, as well as the roles of the various regulators. Requirements applicable to applicant for exchange licence and licensed exchange 9. Anatomy of a financial collapse april 2011, report before the permanent subcommittee on investigations of the committee on homeland security. These include the regulatory frameworks for treating customers fairly, dealing with cybercrime and money laundering and the provision of credit. The practice exam for the regulation and ethics of the sa financial markets module is intended to enhance learning and provide learners a formative assessment tool whereby their progress can be gauged reliably and at the same time provide a learning aid to improve their knowledge and understanding of the learning material. When enacted, this law will implement a new twin peaks regulatory structure and is a significant step in the overhaul of south africa s financial sector regulation that was kicked off by the 2011 report a safer financial sector to serve south africa better. One of the causes of the global financial crisis 20072009 often cited is inadequate or improper regulation and supervision of the financial sector.
Draft code of conduct for the south african overthecounter markets. The nonbanking sector is overseen by the financial services board fsb. Targeting compliance the changing role of compliance in. Introduction eariier literature on the development process stressed the importance of capital accumulation, and the role of financial institutions in that process. She is a chartered director sa and fellow of the south african institute of financial markets saifm. The financial services sector is highly regarded as having a strong regulatory and legal framework. The capital market, with the stock market the 5th largest by market capitalisation in africa after south africa, egypt, nigeria and morocco. Regulation and ethics of the south african financial. The regulation of the accountancy profession in south. The financial sector regulation act 9 of 2017 intends.
Markets in financial instruments directiveregulation mifid ii mifir and the european market infrastructure regulation emir. Preshipment inspection not required cma cgm trained staff members are available to assist customers in all aspects of the documentary requirements of the trade to south africa. Pierre coetzee payments regulation payments association of south africa dominique collett senior investment executive. Practice exams south african institute of financial. Draft code of conduct for the south african overthe.
The impact of the 4th industrial revolution on the south. Financial regulations of the african development bank. Reinventing financial sector regulation in south africa. Aug 24, 2016 the position of south africa as a net exporter of financial services in africa, and with a dominant financial sector on the continent means that there is the possibility of regulatory spillovers to those countries where south african financial institutions have a presence, and particularly where they have a systemically significant presence. Competition law exemptions and regulations applicable during covid19.
Market participants foster an environment of compliance enhanced by adhering to global compliance and ethics principles. Polity offers free access to south african legislation, policy documents and daily political news. Cmacgm african marketing i 030714 south africa regulation overview waiver control a waiver is not necessary. Licensing of exchange functions of licensed exchange 10. For financial markets to function effectively there needs to be some foundation of legal certainty and regulations that reduce the possibility of systemic or institutional failure, fraud, market manipulation and the unfair treatment of. The practice exam for the regulation and ethics of the sa financial markets module is intended to enhance learning and provide learners a formative. The regulation and ethics of the south african financial markets. The enactment of the fsra signifies an overhaul of the entire financial regulation system, in which south african financial regulation will be divided into prudential regulation and conduct regulation, with two separate regulatory bodies. Objectives and types of financial regulation submission. Goodspeed, 2012, van schaik publishers edition, in english 4th ed. This paper stresses the importance of the processes and institutions by which capital is allocated, and the. In order to facilitate the exchange of regulatory information, and as a precondition to endorsement, esma has also entered into a cooperation agreement for the supervision of cras with the competent south african authority, the financial services board. Strengths and weaknesses in securities market regulation. The regulatory landscape is set to change sig nificantly in the.
The impact of the 4th industrial revolution on the south african financial services market. The regulation and ethics of the south african financial markets compulsory module introduction to the financial markets compulsory module the equity market elective module the bond market elective module the derivatives market elective module the south african money market. Financial markets act 19 of 2012 south african government. Regulatory change is upon us and it cannot be avoided regulatory change is upon us and it cannot be avoided regulators in south africa have been grappling with how to ensure the fair treatment of customers through existing financial sector specific legislation, and poor customer outcomes in south africas financial sector have highlighted the need for stronger regulatory oversight of how. Managing the countrys official gold and foreign exchange reserves. For financial markets to function effectively there needs to be some foundation of legal certainty and regulations that reduce the possibility of systemic or institutional failure, fraud, market manipulation and the unfair treatment of investors, particularly retail investors. Regulation and ethics of the sa financial market introduction to financial markets the bond market. On 31 march 2020, the financial sector conduct authority issued fais notice 17 of 2020 which provides an exemption from and extension of the period to comply with certain fit and proper requirements including in particular, continuous professional development requirements and regulatory examination requirements. It consolidated the south african regulatory framework for capital markets and aligned the regulation and supervision of south african financial markets with the. The capital markets in south africa are well established and the regulation of its securities exchanges was rated as among the best in the world in the 20112012 world economic forums global competitiveness report. South africa s financial services sector, backed by a sound regulatory and legal framework, is sophisticated, boasting dozens of domestic and foreign institutions providing a full range of services commercial, retail and merchant banking, mortgage lending, insurance and investment. The code of conduct of the south african public service compared with international guidelines by kanthi nagiah submitted in partial fulfilment of the requirements for the degree mphil in fraud risk management in the faculty of economic and management sciences department of auditing at the university of pretoria supervisor. Legistlative impact on financial advisors planners. Sayeh august 19, 2008 a joint imfworld bank financial sector assessment program fsap mission visited south africa from may 6 to 20, 2008 to conduct an fsap update.