An Overview of the Role and Functions of Selected Financial Role Players to Protect Financial Stability and Promote Market Integrity in South Africa"

Abstract

The South African Reserve Bank (SARB) and other financial role players such as the Prudential Authority (PA), the Financial Sector Conduct Authority (FSCA), the National Credit Regulator (NCR), the Financial Intelligence Centre (FIC), the Financial Stability Oversight Committee (FSOC), the Financial Sector Contingency Forum (FSCF), the Financial Sector Council of Regulators (FSCR) and the Financial Sector Inter-Ministerial Council (FSIC) play a significant role in the protection and promotion of financial stability and market integrity in South Africa. The SARB has the primary mandate to promote financial stability while the FSCA promotes market integrity and enhances market efficiency through promoting the fair treatment of financial customers by providing financial literacy programmes. As technology advances and new players enter the market, traditional financial institutions are faced with increased competition and the need to adapt and innovate to stay relevant. In this regard, regulatory frameworks and the functions of regulatory bodies should be constantly reviewed to conform to developments in financial technology (fintech) and to safeguard consumer interests. This article examines the role and functions of the aforementioned financial role players in terms of the Financial Sector Regulation Act (FSR Act) and other relevant financial sector laws. This is done to evaluate the effectiveness of their role and functions in protecting and promoting financial stability and market integrity in line with recent fintech and artificial intelligence (AI) developments. The article also evaluates the importance of cooperation and collaboration among the financial role players to enable them to adequately fulfil their mandates.