Prudential Authority Implementation

Transcription

1 Compliance Institute of Southern Africa: 19 th Annual Conference, 2018 Prudential Authority Implementation Lyle Horsley Policy, Statistics and Industry Support Department 11 September 2018

2 Overview of presentation 1. Introduction 2. Why Twin Peaks? 3. Establishment of PA 4. Scope of PA 5. The PA transformation 6. Organisational Structure of the PA 7. Prudential Committee 8. What we do differently 9. Cooperation and collaboration 10.Progressive realisation of PA Mandate 11. Forthcoming attractions 2

3 Why Twin Peaks? Twin Peaks is a comprehensive and complete system for regulating the financial sector. PA - Microprudential FSCA - Market Conduct Regulator Finstab Macroprudential Mandate Resolution Framework Regulatory Responsibilities Contribution to Financial Stability 3

4 Establishment of Prudential Authority Objective & functions Staff Governance Delegations CEO Regulatory strategy 4 Prudential Committee

5 Scope of the PA Banks FMIs Insurers CFIs FSPs 5

6 The PA transformation Effectiveness Efficiency Excellence Develop New Competencies Insurance Bank CFI CFI Significant Owners Bank Bank Prudential Authority Conglomerates Insurance Prudential Authority FMIs CFI Insurance FMI 6

7 Organisational structure of the PA Lesetja Kganyago Governor & Chairperson of the Prudential Committee Prudential Committee Kuben Naidoo Deputy Governor: Prudential Authority Francois Groepe Deputy Governor: Financial Stability & Currency Daniel Mminele Deputy Governor: Markets & International PA Suzette Vogelsang Head: Banking, Insurance, Market Infrastructure and CFI Faizel Jeena Head: Risk Support Denzel Bostander Head: Financial Conglomerate Unathi Kamlana Head: Policy, Statistics and Industry Support 7

8 Banking, Insurance, Market Infrastructure and CFI Department Suzette Vogelsang Head: Banking, Insurance, Market Infrastructure and CFI Cooperative Banks and CFIs Two bank solo divisions Three insurance solo divisions Financial Market Infrastructures 8

9 Risk Support Department Faizel Jeena Head: Risk Support Credit risk & quantitative analysis Operational & IT Risk Market Risk Liquidity Risk Asset and Liability Management Actuarial SAM Implementation Statistics 9

10 Financial Conglomerate Department Denzel Bostander Head: Financial Conglomerate Four Financial Conglomerate Divisions Anti-Money Laundering and Combatting of Financial Terrorism Division 10

11 Policy, Statistics and Industry Support Department Unathi Kamlana Head: Policy, Statistics and Industry Support Policy Division Supervisory Frameworks, Management Support and Project Management Division Legal Support Division Enforcement and Resolution Division Industry Technical Support and Analysis Division 11

12 Prudential Committee Generally oversee management & administration of PA Act for PA in specific matters: Adopting the regulatory strategy Adopting administrative action procedures of PA Making regulatory instruments Making determination of fees 12

13 What the PA does differently from BSD? PA Promoting the soundness of the domestic banking system and to contribute to financial stability. Financial Sector Regulation Act Promoting and enhancing the safety and soundness of financial institutions and assist in maintaining financial stability Financial Conglomerate over and above consolidated and solo supervision Banks Mutual Banks Cooperative Banks Cooperative Financial Institutions (New) Insurance Act (SAM) Market Infrastructures (New) Significant Owners PA and FSCA SIFIs and Systemic Events - SARB FS Tribunal and Ombuds 13 Council

14 What the PA does differently from FSB Insurance? PA Promoting the maintenance of a fair, safe and stable insurance market for the benefit and protection of policyholders. Financial Sector Regulation Act Promoting and enhancing the safety and soundness of financial institutions and assist in maintaining financial stability Protecting customers against the risk that a financial institution fails to meet its obligations Banks Mutual Banks Cooperative Banks Cooperative Financial Institutions (New) Insurance Act 18 of 2017 Solvency Assessment and Management Financial Market Infrastructures (New) 14

15 Working with other regulators and the SARB Organs of State PA Financial System Council of Regulators SARB Microprudential Macroprudential FSRA Memorandum of Understanding FSCA Conduct Financial Sector Inter-ministerial Council NCR, FIC Credit, AML 15 Financial Stability Oversight Committee

16 Primary interactions between the PA and the FSCA Two-key licensing Regulatory Instruments Financial conglomerates Significant Owners Inspections and Investigations Enforcement 16

17 Interactions between the PA and the SARB SARB Macro-prudential regulator Protecting and enhancing financial stability Restoring and maintaining financial stability in terms of a systemic event PA Micro-prudential regulator Promoting and enhancing safety and soundness of financial institutions (financial products and securities services) and FMIs Assist in maintaining financial stability 17

18 Progressive realisation of the mandate of the PA In the future prudential regulation and supervision of: Pension Funds Collective Investment Schemes Friendly Societies Medical Schemes 18

19 Progressive realisation of the mandate of the PA Complex mandate Regulation and of Pension Funds Collective Investment Schemes Friendly Societies Medical Schemes 19

20 Forthcoming attractions Next steps for PA: Finalisation of regulatory strategy Finalisation of MoUs with regulators and SARB Development of prudential supervisory framework banks, insurance, market infrastructures 2018/2019 Designation of financial conglomerates and finalisation of regulatory framework for financial conglomerates 2019 Fit & proper requirements for significant owners

21 Thank you