Canada    FinTech Guide    Chapter 14    South Africa


14. RegTech
South Africa  South Africa

Regulation is very administrative and automatable. Regulation also changes frequently in different industries to adapt to economic, legislative and technological changes.



Legal Affairs


Banking and financial services are regulated by the Financial Advisory and Intermediary Services Act 37/2002 (FAIS) and a license is granted in terms of this act to be an Authorised Financial Services Provider (FSP). FSPs are regulated by the Financial Services Board.

Online Banking and regulatory financial services further fall under the Electronic Communications and Transaction Act 25/2002 and is only regulated.

Costs for an FSP license is calculated upon application, it’s not expensive in principle. Levies must be paid every year depending on the size of the business.



Economic Conditions


It’s a very big market because, as mentioned before, there are many FSPs who must comply with different legislation and not enough compliance officers. Databackup, risk management and identification are all part of the regulation services FSPs need assistance on.



Miscellaneous


There will be more stringent requirements in future with the implementation of the CoFI Act (Conduct of Financial Institutions Act) and the FIC Act Amendment Bill. Fintechs will have more business opportunity when this legislation comes into force.



Contributing Authors

Garlicke & Bousfield Inc

Brian Jennings
Durban, South Africa

Chapter Index


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018