Twin Peaks – Taking the cost out of compliance
by Dr. Andrew D. Schmulow
BizNews, (2018), published electronically.
South Africa has now formally begun implementing the new ‘Twin Peaks’ reforms for the regulation of the financial system. This is one of the most far reaching since South Africa left the gold-standard in 1932 and DB & Associates, South Africa’s fastest growing management advisory firm, is assisting businesses to understand the immediate impact and prepare for the future. Based on the Australian Twin Peaks regulatory architecture, these reforms will encompass the latest research conducted, and insights gained, from the global financial crisis, on how to prevent financial crises and, critically, provide consumers with adequate protection.
The new Twin Peaks regulatory model has two tranches: (1) implementation of the Financial Sector Regulation Act (FSRA), and (2) the finalisation of the draft, and subsequent enactment, of the Conduct of Financial Institutions Bill (COFI). Together these will provide South Africa with the best regulatory architecture available. It is the only model that addresses, in chief, the conflicting impetuses of financial system stability and consumer protection.