Concern for consumers in Twin Peaks Bill

Opposition parties are concerned that the National Credit Regulator is not included in the amended version of the Twin Peaks Bill, and that this omission will leave consumers vulnerable to unscrupulous lending practices, says a Fin24 report. The draft legislation, officially known as the Financial Sector Regulation Bill, was considered in the National Assembly on Thursday, following lengthy deliberations during meetings of Parliament’s standing and select committees on finance. It makes provision for a so-called Twin Peaks model of financial regulation. On the one hand the SA Reserve Bank will be responsible for regulating all financial institutions – banks, insurance houses and the asset management sector. On the other hand, financial conduct will be governed by a new entity, called the Financial Sector Conduct Authority, which will replace the Financial Services Board. The DA and EFF opposed the Bill, while the IFP accepted it with reservations. Alf Lees, DA spokesperson on finance, said in his declaration that although it is positive that the Bill now deals with the constitutional concerns of warrantless searches, it is still flawed. ‘The exclusion of the NCR means there will be a third body that runs parallel to this (the financial regulation of the Twin Peaks model), which means there’s a weak conduct authority for millions of South Africans who buy on credit.’ The IFP’s Mkhuleko Hlengwa said although his party supports the Bill a new process must be started to look at the inclusion of the NCR.