No, I am not referring to the eerie and strangely hypnotic TV show of the 90’s that was recently revived. I am referring to the biggest structural reform in the financial services industry in the past few decades.
Certain major financial catastrophes triggered the changes in regulating the financial sector. We all remember the Fidentia fraud committed against 47000 widows and orphans. Also, more recently the African Bank curatorship scandal which almost lead to the realization of a systemic risk. It can, however, be said that the 2008 global financial crisis, was the catalyst across the world for regulators to reconsider their supervisory approach.
All these events lead to the National Treasury initiating the Financial Sector Regulation Act, 2017 (FSR Act). The FSR Act established amongst other things two new regulators, the Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA). The FSCA is tasked with supervising conduct of business in the financial sector and the PA is tasked with the prudential supervision of the financial sector. The FSCA essentially replaced the Financial Services Board.