FSCA Publishes its 2026–2029 Three-Year Regulation Plan

The Financial Sector Conduct Authority (FSCA) has published its 2026 Three-Year Regulation Plan, outlining the regulatory framework projects it intends progressing over the period 1 April 2026 to 31 March 2029.

The Regulation Plan is reviewed annually to reflect changing circumstances, emerging developments and regulatory priorities. The FSCA also notes that project timelines remain subject to internal and external dependencies and may change as projects progress.

Key Regulatory Developments

1. Continued Development of the COFI Regulatory Framework

The FSCA will continue work on regulatory frameworks supporting the implementation of the Conduct of Financial Institutions (COFI) Bill. The Regulation Plan also includes continued development of cross-sector licensing requirements and consultation on themed regulatory frameworks.

The FSCA notes that the timing of the COFI Bill remains outside of its control and that support for the legislative process will continue as required.

2. Governance

The Joint Standard on Governance remains one of the FSCA's priority projects.

According to the Regulation Plan:

"Governance forms the bedrock of financial sector regulation."

Technical work will continue before the draft Joint Standard is released for public consultation.

3. Beneficial Owners

The FSCA intends publishing a draft Joint Standard relating to Beneficial Owners for public consultation during 2026/27.

The Regulation Plan notes that this project has become increasingly important due to South Africa's ongoing efforts to address the findings arising from the Financial Action Task Force (FATF) Mutual Evaluation Review.

4. Third-Party Service Provision (Outsourcing)

Technical work will continue on the Joint Standard relating to Third-Party Service Provision (Outsourcing).

According to the FSCA, the purpose of this Joint Standard is to harmonise and strengthen requirements relating to third-party service provision or outsourcing across the financial sector.

5. Operational Risk and Resilience

The Draft Joint Standard on Operational Risk and Resilience Requirements has now been included as a formal regulatory project.

Technical work is expected to continue during the 2026/27 financial year, with a draft Joint Standard expected to be published for public consultation during 2027/28.

6. Cloud Computing and Offshoring of Data

The FSCA has also formally included a Draft Joint Standard on Cloud Computing and Offshoring of Data.

The proposed Joint Standard is intended to establish requirements relating to cloud computing and the offshoring of data. The FSCA notes that a decision is still to be made on whether this project will proceed as a standalone Joint Standard or be incorporated into other regulatory frameworks.

7. Artificial Intelligence

The Regulation Plan confirms that the FSCA and the Prudential Authority are continuing research into artificial intelligence within the South African financial sector.

A Discussion Paper is being developed to support further stakeholder engagement on regulatory and supervisory considerations. The Regulation Plan also notes that high-level governance principles relating to the use of artificial intelligence are intended to form part of the future Joint Standard dealing with Culture and Governance requirements for financial institutions.

8. Open Finance

The FSCA, together with members of the Intergovernmental Fintech Working Group under the guidance of National Treasury, continues to work on the development of an Open Finance Policy Position for South Africa.

The Regulation Plan states that legislative interventions may arise from this work as the programme progresses.

Conclusion

The 2026 Three-Year Regulation Plan provides an overview of the regulatory framework projects that the FSCA intends progressing over the next three years. The Plan also confirms that project timelines remain subject to change and that stakeholder consultation will continue throughout the regulatory development process.

The FSCA encourages stakeholders to participate in consultation processes to assist in developing regulatory frameworks that are robust, fit for purpose and aligned with both international standards and the South African financial sector.

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