Guide to Financial Services Regulations & Guidelines in South Africa

South Africa has given two independent regulatory authorities to regulate the financial sector:

● The Prudential Authority (PA) is an independent institution established within the management framework of the South African Reserve Bank (SARB). The PA is responsible for the prudential supervision of South African financial institutions. Its work is focused on maintaining and strengthening the financial security and soundness of financial institutions and ensuring financial customers are protected from the consequences of a failure of financial institutions to fulfil their obligations.

● The Financial Sector Conduct Authority (FSCA) is responsible for improving financial market efficiency and integrity, protecting financial customers, and promoting fair treatment for financial customers.

The PA has issued relevant directives and guidelines to for prudential supervision of South African financial institutions, insurance companies, and cooperative financial institutions.

● D3/2018: Cloud Computing and the Offshoring of Data stipulates how financial institutions must be regulated if they choose cloud computing or offshoring of data management. This directive should be considered together with the "G5/2018".

● G5/2018: Cloud Computing and the Offshoring of Data is a guide for the "D3/2018" and should be considered together with the "D3/2018".

● G5/2014: Outsourcing of Functions within Banks explains the potential risks arising from the selection of outsourcing service providers by financial institutions, and provides guidelines for evaluating outsourcing-related risk, and the elements of an appropriate risk management program.

● G4/2017: Cyber Resilience establishes management requirements for the network resilience of financial institutions, emphasizing the importance of security and effective operations to financial stability and economic growth.

FSCA has issued Directive 159.A.i to regulate the outsourcing management of financial institutions.

It is a legislative requirement for outsourcing management of insurance companies (including reinsurance companies). Regardless of whether the insurance company is located in South Africa, or any subsidiary of the insurance company, it shall comply with this directive.

HUAWEI CLOUD User Guide to Financial Services Regulations & Guidelines in South Africa describes how Huawei Cloud will help you meet the regulatory requirements of the financial industry in South Africa.