From CompliNEWS | Financial Services Intelligence Watch

Moneyweb reports that South Africa’s long-awaited Conduct of Financial Institutions (CoFI) Bill is moving closer to implementation and could trigger one of the most significant regulatory changes the financial services sector has experienced in decades. Rather than licensing firms based on what type of institution they are, the new framework will focus on the activities they perform, creating a more conduct-focused and customer-centric regulatory environment.

For many financial institutions, the transition will involve a comprehensive review of existing licences, business models and governance structures. Firms will need to map their activities against the new licensing categories and determine whether their current permissions align with the proposed CoFI framework. The process is expected to be phased, but the scale of the exercise should not be underestimated.

One area attracting particular attention is the treatment of outsourced service providers and juristic representatives.

While CoFI recognises outsourcing arrangements, there remains uncertainty around when separate licensing may be required. Businesses that start assessing their operating models and regulatory structures now are likely to be better positioned for a smoother transition once the legislation comes into force.

Read the Full Moneyweb report here