The Conduct of Financial Institutions Bill
The proposed Conduct of Financial Institutions Bill (COFI Bill)was published during December 2018 and is now available for download (see below). The Bill relates to the new Twin Peaks regulation model and the Financial Sector Conduct Authority (FSCA), in particular, which replaced the well known former Financial Services Board (FSB).
The Twin Peaks regulatory model makes allowance for both the National Credit Regulator (NCR) and the new FSCA to play a role in the regulation of credit providers. As proposed, the NCR will carry on as before regulating credit providers under their jurisdiction, as per requirements in the National Credit Act (NCA), for the product they provide – which is defined as the credit agreement.
As per Twin Peaks, the FSCA will regulate the services provided by credit providers (and other parties) in relation to the provision of credit, in the same way, that it regulates similar services provided by other financial institutions. This means that the FSCA will regulate credit providers on matters such as marketing, promotion, provision of advice and the distribution and disclosure of information (relating to credit).