2013年-FSB全球金融稳定委员会_Peer_Review_of_South_Africa_40页_544kb

Peer Review of South Africa Summary

Core Content

This report presents the findings and conclusions of the FSB's peer review of South Africa, focusing on two key areas: interagency coordination and the regulatory structure, and regulation of over-the-counter (OTC) derivatives markets. Conducted in December 2012, it is the first peer review to use the revised FSB guidelines and is based on responses from South African financial authorities and discussions in the FSB Standing Committee on Standards Implementation (SCSI).

Main Topics and Findings

1. Interagency Coordination and Regulatory Structure

Background

South Africa's financial regulatory system involves multiple agencies and committees, including:

• SARB (Bank Supervision Department, BSD): Prudential regulator of banks.
• FSB-SA (Financial Services Board of South Africa): Regulates non-bank financial institutions and securities markets.
• NCR (National Credit Regulator): Oversees consumer credit conduct.
• DTI (Department of Trade and Industry): Oversees the NCR and other regulatory bodies.
• JSE (Johannesburg Stock Exchange): Self-regulatory organisation with broad responsibilities.
• FIC (Financial Intelligence Centre): Focuses on anti-money laundering.
• Statutory advisory boards: Provide strategic input to regulatory bodies.

Regulatory Reforms

• Twin Peaks Model: A new regulatory structure is being introduced, separating prudential regulation (SARB) from market conduct regulation (FSB-SA).
• Phased Implementation: The reform is divided into two phases, with no final timeline set.
• Interim FSOC: An interim Financial Stability Oversight Committee has been established to oversee macroprudential risks, though it lacks formal powers and legislative backing.
• Coordination Efforts: The BSD and FSB-SA have adopted an MoU for coordination and shared supervision of financial groups. The NCR is also expected to be included in this framework.

Challenges

• Complexity: Despite reforms, the system remains complex, with overlapping responsibilities.
• Regulatory Uncertainty: The transition to the Twin Peaks model requires careful planning and coordination.
• Need for Alignment: The FSB-SA and SARB must align on responsibilities and powers, especially in the context of the new regulatory structure.

2. OTC Derivatives Market Reforms

Background

The 2008 FSAP highlighted the vulnerability of non-resident activity in the foreign exchange market and recommended enhanced OTC derivatives oversight. South Africa, as a G20 member, has committed to implementing reforms aligned with international standards.

Reform Phases

• Phase I: Implementation of a code of conduct and central reporting of OTC derivatives.
• Phase II: Introduction of margin and capital requirements for non-centrally cleared derivatives.
• Phase III: Standardisation, central clearing, and central trading (where appropriate).

Regulatory Framework

• The Financial Markets Act (FMA) is the foundation for the reforms and will become operational once final regulations are approved.
• The FSB-SA is currently the sole regulator of OTC derivatives, with the SARB expected to take on prudential oversight once the Twin Peaks model is implemented.

Challenges and Delays

• Uncertainty: Many details of the reform package remain unresolved, due to concerns about potential adverse effects, limited market information, and the need to understand cross-border impacts.
• Cross-Border Issues: The reforms are influenced by the regulatory frameworks of the US and EU, especially regarding central clearing and transparency.

Key Recommendations

Interagency Coordination and Regulatory Structure

• Revise MoU: The SARB and FSB-SA should update their Memorandum of Understanding to clearly define responsibilities and mechanisms for cooperation.
• Incorporate NCR: The NCR should be integrated into the FSB-SA to enhance market conduct regulation.
• Shift Legal Authority: The responsibility for financial disclosure regulation of public companies should be transferred from the DTI to the FSB-SA.
• Set Implementation Timelines: Clear timelines for the Twin Peaks reform should be established to reduce uncertainty.
• Formalise FSOC: The interim FSOC should be replaced with a final, fully legislated version to ensure macroprudential oversight.
• Establish Council of Financial Regulators: A broad council should be created to facilitate information sharing and policy coordination.

OTC Derivatives Market Reforms

• Announce Central Clearing Review Date: The authorities should set a date to evaluate the effectiveness of incentives in promoting central clearing.
• Enhance Enforcement Powers: The FSB-SA should be granted the ability to impose fines on licensed FMIs for non-compliance.
• Improve Recovery and Resolution: Licensed FMIs should be subject to adequate recovery and resolution requirements.
• Leverage TR Data: Use data from trade repositories to assess whether appropriate contracts are being traded on exchanges or electronic platforms.
• Cooperative Arrangements: The FSB-SA should work closely with the SARB to ensure effective supervision in the absence of clear legal powers.

Conclusion

The peer review highlights South Africa's progress in implementing financial sector reforms, particularly in moving towards a Twin Peaks regulatory model and enhancing OTC derivatives oversight. While the country has taken important steps, the reforms face challenges related to complexity, coordination, and cross-border alignment. The FSB encourages continued efforts to streamline the regulatory structure, improve transparency, and ensure that the reforms are implemented effectively and in line with international standards.