Download or read book Implementing a Twin Peaks Model of Financial Regulation in South Africa written by South Africa. Financial Regulatory Reform Steering Committee and published by . This book was released on 2013 with total page 77 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Appraisal of the Twin Peaks Model of Financial Regulation in South Africa written by Shaynel Praful Joshi and published by . This book was released on 2019 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 2008 Global Financial Crisis proved to be a landmark event in the context of financial regulation to the extent that it gave rise to questions of which approach would best suit financial regulation in the pursuit of financial stability. As such the question followed whether there should be a single mega regulator covering all the basis of financial regulation and supervision or whether the mandate should be covered by different institutions of which the central bank should be part thereof. It was within this context that the Twin Peak model attracted the attention of the South African national treasury as a regulatory approach to follow which would serve South Africa better on the whole. This dissertation investigates this model as the way forward having enacted the Financial Sector Regulation Act to give effect to it. The purpose of this dissertation is to consider the specific Twin Peaks model adopted as the new approach to financial regulation in South Africa. The main components of this model will be interrogated in order to determine whether this model is an appropriate regulatory model that caters for the main aspects of financial regulation. This includes the promotion and maintenance of financial stability, safety and soundness of financial institutions and appropriate business conduct regulation. It will be shown that that through this model South Africa has augmented its approach to financial regulation to the South African Reserve Bank as the central bank through an advanced and pronounced financial stability mandate via the legislative framework of the Financial Sector Regulation Act that will enable the efficient execution of this mandate. The dissertation will also delve into a comparative investigation which will focus on the Twin Peaks model which was first pioneered in Australia in 1998 to comparatively benchmark the South African model. The lessons learnt from the failure of the model to work efficiently in Australia will also be discussed. The dissertation is concluded with recommendations for the effective implementation of Twin Peaks in South Africa.
Download or read book The Pursuit of Financial Stability Post the Global Financial Crisis written by Yvonne Orateng Motsoai and published by . This book was released on 2019 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The South African Reserve Bank (SARB) derives its mandate from the South Africa Reserve Bank Act, 90 of 1989. This mandate is confirmed in section 224(1) of the Constitution of the Republic of South Africa, 1996 which provides that the objective of the SARB is to "protect the value of the currency in the interest of balanced and sustainable economic growth in the Republic"℗+. The SARB as the central bank of South Africa has various powers and functions in terms of section 10 of the South African Reserve Bank Act and its mandate for maintaining financial stability has historically been implied as a consequence of such powers. Financial stability has however not until very recently been captured in legislation as one of the explicit responsibilities of the SARB. However, recognising that achieving financial stability is the ultimate pursuit for economic growth, South Africa started a formal review of its financial regulatory system in 2007, and this review process which is detailed in the Treasury policy documents "A safer financial sector to serve South Africa better (2011) and "Implementing a Twin Peaks model of financial regulation in South Africa (2013)) eventually culminated in the enactment of Twin Peaks model of regulation in 2017. In terms of the Twin Peaks model the prudential regulation of financial institutions and the regulation of market conduct are separated in order to put equal focus on both functions. Notably, the Financial Sector Regulation Act, 9 of 2017 (FSR Act) as a framework act for the South African Twin Peaks model also strengthened the mandate of the SARB by entrusting it with the responsibility of ensuring financial stability and generally the macro prudential oversight over financial institutions.
Download or read book The Cambridge Handbook of Twin Peaks Financial Regulation written by Andrew Godwin and published by Cambridge University Press. This book was released on 2021-07-15 with total page 595 pages. Available in PDF, EPUB and Kindle. Book excerpt: First proposed in 1994, the Twin Peaks model of financial system regulation employs two specialist peak regulators: one charged with the maintenance of financial system stability, and the other with market conduct and consumer protection. This volume, with contributions from over thirty scholars and senior regulators, provides an in-depth analysis of the similarities and differences in the Twin Peaks regimes that have been adopted around the world. Chapters examine the strengths and weaknesses of the model, provide lessons from Australia (the first to adopt the model), and offer a comparative look at the potential suitability of the model in leading non-Twin Peaks jurisdictions. A key resource for central bankers, public policy analysts, lawyers, economists, politicians, academics and students, this work provides readers with a comprehensive understanding of the Twin Peaks model, and a roadmap for countries considering its adoption.
Download or read book Twin Peaks written by Andrew Godwin and published by . This book was released on 2018 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: The National Assembly of South Africa has passed a Bill adopting the 'twin-peaks' model of financial regulation, which sees regulation split into two broad functions: market conduct regulation and prudential regulation. This article compares the structure of the twin-peaks model in South Africa with the structure in other jurisdictions. In doing so, it identifies the strengths and possible weaknesses of the model in South Africa, and the extent to which it reflects international experience. The evolution of the legislation reveals that South Africa has drawn increasingly on the international experience, particularly the experience in the UK. However, it also reveals characteristics that might be regarded as unique to South Africa. Two areas are particularly noteworthy in this regard. First, the regulatory framework attempts to achieve a balance between the need to ensure operational independence on the part of the regulators, and the need to recognise the role and involvement of the executive government. Second, by comparison with the international experience (even that in the UK) the design of the regulatory co-ordination framework appears to involve a high level of potential overlap between the co-ordinating bodies, and also a highly prescriptive approach to achieving effective co-ordination.
Download or read book South Africa Financial Sector Assessment Program Technical Note on Banking Regulation and Supervision written by International Monetary and published by International Monetary Fund. This book was released on 2022-06-17 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: The implementation of a twin peaks model represents a significant change to the South African financial supervisory architecture. The Prudential Authority (PA), operating within the administration of the South African Reserve Bank (SARB), is responsible for promoting and enhancing the safety and soundness of financial institutions that provide financial products and securities services. A separate authority, the Financial Sector Conduct Authority2 (FSCA), is responsible for market conduct regulation and supervision. The introduction of the twin peaks architecture was motivated by a need to increase the robustness of the financial sector regulatory and supervisory system, reinforce financial stability, improve protection of customers, and enhance cooperation among the regulators.
Download or read book The Role of the South African Reserve Bank as Central Bank in the South African Twin Peaks model written by Darius Zeederberg and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: South Africa has recently transitioned from a model of sectoral financial regulation to a Twin Peaks model of financial regulation by objective. The Financial Sector Regulation Act 9 of 2017 (FSRA) which puts in place the architecture for the new Twin Peaks model is a focused piece of legislation aimed at safeguarding financial stability. This mini-dissertation will guide the reader on the impact of the FSRA on role of the Reserve Bank of South Africa (SARB), as central bank, in relation to financial stability. The previous functions of the SARB will be discussed, to indicate how the role of the SARB has changed in the Twin Peaks model. This discussion will be informed by an overview of the reasons for, and lessons learnt from, 2008 Global Financial Crisis and the rationale for the introduction of a Twin Peaks model in South Africa. Thereupon the legal framework for the expanded financial stability mandate of the SARB is considered in detail. A brief discussion of the Australian Twin Peaks model is also provided with a discussion of the roles of the Australian Reserve Bank and the Australian Prudential Regulatory Authority, who share the mandate for financial stability in Australia. The purpose of this comparative discussion is to benchmark the role that the SARB plays within the South African model and to draw lessons that could aid in improving the South African model and particularly the central bank s ability to promote and maintain financial stability.
Download or read book The Twin Peaks Model of Financial Regulation and Reform in South Africa written by Andrew Godwin and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Role of the Prudential Authority in the South African Twin Peaks Model written by Alude Xuba and published by . This book was released on 2019 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The ability of a country to promote and maintain financial stability depends to a large extent on whether it has an effective and efficient financial regulatory model. It is of great importance that the regulators within such a regulatory model must have clear objectives and mandates. A financial regulatory model that has been hailed as an optimal regulatory model is the Twin Peaks model as designed by Michael Taylor. This model establishes peak regulators namely a systemic and prudential regulator on the one hand and a market conduct regulator on the other who then work together to regulate the financial system in the interests of financial stability. The Twin Peaks model was first pioneered in Australia in 1998 where it has been adapted to contain three peaks, namely the central bank as systemic regulator, APRA as prudential regulator and ASIC as market conduct regulator. South Africa has recently transition to a Twin Peaks model with the introduction of the Financial Sector Regulation Act 19 of 2017. The South African Twin Peaks model, like the Australian model is also a three peak model comprising of the central bank as systemic regulator and the newly established Prudential Authority and Financial Sector Conduct Authority as prudential and market conduct regulators respectively. This dissertation accordingly interrogates the institutional structure of the South African Twin Peaks model with specific focus on the role of the Prudential Authority. It considers the objectives, powers and functions of the Prudential Authority as well as its management structure and location to determine its role as aforesaid. It further compares the role of the South African Prudential Authority with its Australian counterpart to assess whether there are any aspects that require further reform.
Download or read book The Twin Peaks Model and the Future of South African Financial Regulation written by Tariro Gloria Muzenda and published by . This book was released on 2017 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Aligning Financial Supervisory Structures with Country Needs written by Jeffrey Carmichael and published by World Bank Publications. This book was released on 2004 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt: This publication contains the proceedings of an international conference on the regulation of financial institutions and supervisory structural reforms, held in Washington D.C., United States in December 2003 and involving participants from 52 countries. It considers case studies of experiences of regulatory reform approaches adopted in a number of countries including Australia, South Africa, Ireland, Sweden, Hungary and Estonia.
Download or read book The Impact of the Twin Peaks Model on the Insurance Industry written by Daleen Millard and published by . This book was released on 2017 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial regulation in South Africa changes constantly. In the quest to find the ideal regulatory framework for optimal consumer protection, rules change all the time and international trends have an important influence on lawmakers nationally. The Financial Sector Regulation Bill, also known as the "Twin Peaks" Bill, is the latest invention from the table of the legislature, and some expect this Bill to have far-reaching consequences for the financial services industry. The question is, of course, whether the current dispensation will change so quickly and so dramatically that it will literally be the end of the world as we know it or whether there will be a gradual shift in emphasis away from the so-called silo regulatory approach to an approach that distinguishes between prudential regulation on the one hand and market conduct regulation on the other. A further question is whether insurance as a financial service will change dramatically in the light of the expected twin peak dispensation. The purpose of this paper is to discuss the implications of the FSR Bill for the insurance industry. Instead of analysing the Bill feature for feature, the method that will be used in this enquiry is to identify trends and issues from 2014 and to discuss whether the Twin Peaks model, once implemented, can successfully eradicate similar problems in future. The impact of Twin Peaks will of course have to be tested, but at this point in time it may be very useful to take an educated guess by using recent cases as examples. Recent cases before the courts, the Enforcement Committee and the FAIS Ombud will be discussed not only as examples of the most prevalent issues of the past year or so, but also as examples of how consumer issues and systemic risks are currently being dealt with and how this may change with the implementation of the FSR Bill.
Download or read book The South African Financial System written by and published by . This book was released on 1995 with total page 520 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Financial Supervision in the 21st Century written by A. Joanne Kellermann and published by Springer Science & Business Media. This book was released on 2014-07-08 with total page 255 pages. Available in PDF, EPUB and Kindle. Book excerpt: The financial crisis prompted financial supervisors to take a critical look at their own performance. The "toolkit" available to supervisors is considerably more varied than it was a few years ago. Supervision has become more forward-looking, taking into account also soft controls, such as ‘conduct and culture’, corporate governance, and business models of financial institutions. This collection of essays discusses several significant changes in supervision methods and supervisory organisations and examines what methods contribute to ‘good supervision’ and what can reasonably be expected of supervisors. The authors are experts in the field and most of them are affiliated to organisations responsible for financial supervision.
Download or read book A Comparative Analysis of the Role of the Central Bank in Promoting and Maintaining Financial Stability in South Africa written by Martha Gertruida Van Niekerk and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The 2008 Global Financial Crisis shook financial systems worldwide to their roots and set regulators on a new course post Crisis where the pursuit of financial stability emerged as apex regulatory objective. This new regulatory paradigm resulted in an expanded financial stability mandate for central banks. Given the aÌ22́Ơ¿3fuzzinessaÌ22́Ơ℗+ of the concept of financial stability it is quite challenging to regulate this new mandate. Inevitably it also entails considering which model of financial regulation is the optimal model within which to locate the central bank and its expanded mandate. Pertinently it needs to be considered how the appropriate legislative and institutional framework can be designed in order to specifically enable effective execution of the financial stability mandate of the central bank and also enable the promotion of financial stability in the broader regulatory context via prudential and market conduct regulation of financial institutions. This thesis thus trails the evolution of central banks and their various roles that are relevant in the context of financial stability. It considers the impact of the GFC on regulation and ponders the concept of financial stability as core regulatory objective, post GFC, and how it has had an impact on the role of the central bank in this regard. It further considers the main models of financial regulation focusing specifically on Twin Peaks, given that that is the model that has been selected by South Africa, and in which the South African Reserve Bank and its expanded financial stability mandate will be positioned. The study delves deeper into the role of the South African central bank in respect of the promotion and maintenance of financial stability, and considers how this role has changed in the context of the Twin Peaks model (as set out in the Financial Sector Regulation Act) that South Africa recently adopted in August 2017. A comparative investigation is then undertaken of the Twin Peaks models, adopted in Australia and the Netherlands respectively. These comparative investigations focus specifically on the role of the central bank in the Twin Peaks context, insofar as promotion and maintenance of financial stability is concerned, but also more broadly into Twin Peaks as a regulatory model that enables financial stability on a broader scale. The study is concluded with recommendations for future reform and research.
Download or read book Institutional Structure of Financial Regulation written by Robin Hui Huang and published by Routledge. This book was released on 2014-06-20 with total page 281 pages. Available in PDF, EPUB and Kindle. Book excerpt: In light of on-going global financial crises, the institutional structure of financial regulation is currently a subject of significant academic and practical interest. The financial crisis has called into question the adequacy of financial regulation at the national and supranational levels, and has instigated financial regulatory reforms in major markets overseas. This has included the enactment of the Dodd-Frank Act in the US, and the programme to split the Financial Services Authority in the UK. This book examines the institutional structure reform of financial regulation from a comparative perspective, exploring both fundamental theories and international experiences. The book explores the three main institutional structures of financial regulation in the world; the sectors-based model, adopted in the US, Mainland China and Hong Kong; the twin-peaks model with Australia and the Netherlands as its pioneers; and the single-regulator model as represented by the former Financial Services Authority in the UK and the Financial Services Agency in Japan. The book contains contributions from renowned experts in the field of financial regulation including Douglas Arner, Jeffrey Carmichael, Robin Hui Huang, Dirk Schoenmaker, and Michael Taylor, and will be of interest to students and researchers of banking and finance law, and comparative economics.
Download or read book Retail Market Conduct Reforms in South Africa Under Twin Peaks written by Andrew Schmulow and published by . This book was released on 2018 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article examines retail market regulatory reforms currently underway, as part of the implementation of a Twin Peaks regulatory model in South Africa. A brief account is provided of the history of these reforms, followed by an analysis of the normative goals put in place for a new market conduct and consumer protection regime; and the developmental needs that inform those goals. Thereafter the article explores the inter-relationship between the existing credit regulator and the soon to be established Financial Sector Conduct Authority. An analysis is then provided of accountability mechanisms, as well as failures exhibited by those mechanisms in the UK and Australia. Finally an argument is made for a “regulator for the regulators”, in order to address past regulatory failures.
