The Financial Sector Conduct Authority (FSCA) has published its regulatory priorities and direction for the upcoming three-year period in its Regulatory Strategy for 2025 – 2028.
The Regulatory Strategy builds on the following strategic objectives:
- Improving industry practices to achieve fair outcomes for financial customers through the publication of conduct standards and regulatory frameworks that address, among other things, culture, governance, and the emergence of AI technology;
- Acting against misconduct and supporting the confidence and integrity in the financial sector by enhancing their surveillance capabilities, leveraging technology and advanced data analytics to proactively detect misconduct and undesirable practices. Using a risk-based approach, the FSCA aims to conduct targeted investigations, thematic reviews, and proactive assessments of financial information to detect and mitigate risks early;
- Promote the development of an innovative, inclusive and sustainable financial sector: The FSCA will engage with financial institutions during supervisory interactions to assess their approach to transformation and track their progress in achieving transformation-related outcomes. In anticipation of a more active regulatory role under the COFI Bill framework, the FSCA is upskilling its teams to ensure effective regulation and meaningful transformation;
- Empower households and small businesses to be financially resilient through targeted campaigns that support households and small businesses to enable them to make well-informed financial decisions, with a strong focus on savings habits and wealth creation;
- Accelerate the transformation of the FSCA into a socially responsible, efficient, and responsive conduct regulator through continued implementation of the digital transformation strategy, including the deployment of our new suptech platform (the IRS) and other automation initiatives, all of which aim to improve internal and external service delivery through increased digitalisation and streamlined front and back-end processes.
A Note on CoFI...
The FSCA acknowledges that the development of the CoFI framework continues to be a major focal point. Key to this is the development of a subordinate regulatory framework under the COFI Bill and transitioning existing financial sector laws into this framework, as well as developing a consolidated and harmonised approach to licensing, preparing for the transition of licenses, and granting licenses for new activities. The FSCA remains committed to harmonising existing regulatory frameworks in anticipation of CoFI implementation, though specific timelines remain uncertain.