By Denene Erasmus.
New legislation designed to overhaul how financial institutions are regulated in South Africa will soon be tabled to lawmakers, following months of procedural delays.
In development since 2018, the new law aims to establish a single, comprehensive regulatory framework for market conduct across the financial sector, replacing a fragmented set of legacy regulations. After approval by the cabinet early this year, the Conduct of Financial Institutions Bill has now been certified by state law advisers and parliamentary officials are preparing to table it in the house.
The country’s finance minister Enoch Godongwana published a notice of introduction and explanatory summary of the Bill in April. However it has been stalled while undergoing legal vetting.
The delay illustrates wider frustrations over legislative bottlenecks. During a meeting of Parliament’s Programme Committee on Thursday, lawmakers expressed concern over the slow processing of legislation.
Committee members pointed to delays to the Local Government: Municipal Structures Amendment Bill, widely referred to as the Coalitions Bill, which is still being deliberated in Parliament.
Following South Africa’s local government elections earlier this month, 65% of metropolitan and local municipalities did not produce an outright majority for a single political party and will therefore require a coalition or other cooperative governing arrangements.
The bill is intended to bring greater stability to such councils by mandating binding written coalition agreements.
National Assembly Speaker Thoko Didiza acknowledged frustration over legislative delays, urging committee members and chairs to prioritize and accelerate the legislative program.