Twin Peaks: South Africa's Financial Sector Regulatory Framework

South African Law Journal, Vol. 134, No. 3, p. 665-702, 2017

U of Melbourne Legal Studies Research Paper No. 763

42 Pages Posted: 6 Dec 2017 Last revised: 11 Mar 2018

See all articles by Andrew Godwin

Andrew Godwin

Melbourne Law School

Timothy Howse

Melbourne Law School - University of Melbourne

Ian Ramsay

Melbourne Law School - University of Melbourne

Date Written: November 30, 2017

Abstract

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.

Suggested Citation

Godwin, Andrew and Howse, Timothy and Ramsay, Ian, Twin Peaks: South Africa's Financial Sector Regulatory Framework (November 30, 2017). South African Law Journal, Vol. 134, No. 3, p. 665-702, 2017; U of Melbourne Legal Studies Research Paper No. 763. Available at SSRN: https://ssrn.com/abstract=3080732

Andrew Godwin

Melbourne Law School ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

Timothy Howse

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia

Ian Ramsay (Contact Author)

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

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