Financial Sector Regulation Act, 2017 (Act No. 9 of 2017)Chapter 7 : Regulatory InstrumentsPart 2 : Standards106. Conduct standards |
| (1) | The Financial Sector Conduct Authority may make conduct standards for or in respect of— |
| (b) | representatives of financial institutions; |
| (c) | key persons of financial institutions; and |
| (d) | contractors. |
| (2) | A conduct standard must be aimed at one or more of the following: |
| (a) | Ensuring the efficiency and integrity of financial markets; |
| (b) | ensuring that financial institutions and representatives treat financial customers fairly; |
| (c) | ensuring that financial education programs, or other activities promoting financial literacy are appropriate; |
| (d) | reducing the risk that financial institutions, representatives, key persons and contractors engage in conduct that is or contributes to financial crime; and |
| (e) | assisting in maintaining financial stability. |
| (3) | Without limiting subsections (1) and (2), a conduct standard may be made on any of the following matters: |
| (a) | Efficiency and integrity requirements for financial markets; |
| (b) | measures to combat abusive practices; |
| (c) | requirements for the fair treatment of financial customers, including in relation to— |
| (i) | the design and suitability of financial products and financial services; |
| (ii) | the promotion, marketing and distribution of, and advice in relation to, those products and services; |
| (iii) | the resolution of complaints and disputes concerning those products and services, including redress; |
| (iv) | the disclosure of information to financial customers; and |
| (v) | principles, guiding processes and procedures for the refusal, withdrawal or closure of a financial product or a financial service by a financial institution in respect of one or more financial customers, taking into consideration relevant international standards and practices, and subject to the requirements of any other financial sector law or the Financial Intelligence Centre Act, including— |
| (aa) | disclosures to be made to the financial customer; and |
| (bb) | reporting of any refusal, withdrawal or closure to a financial sector regulator; |
| (d) | the design, suitability, implementation, monitoring and evaluation of financial education programs, or other initiatives promoting financial literacy; |
| (e) | matters on which a regulatory instrument may be made by the Financial Sector Conduct Authority in terms of a specific financial sector law; |
| (f) | matters that may in terms of any other provision of this Act be regulated by conduct standards; and |
| (g) | any other matter that is appropriate and necessary for achieving any of the aims set out in subsection (2). |
| (4) | A conduct standard may declare specific conduct in connection with a financial product or a financial service to be unfair business conduct if the conduct— |
| (a) | is or is likely to be materially inconsistent with the fair treatment of financial customers; |
| (b) | is deceiving, misleading or is likely to deceive or mislead financial customers; |
| (c) | is unfairly prejudicing or is likely to unfairly prejudice financial customers or a category of financial customers; or |
| (d) | impedes in any other way the achievement of any of the objectives of a financial sector law. |
(5)
| (a) | In relation to a credit provider regulated in terms of the National Credit Act, a conduct standard may only be made in relation to a financial service provided in relation to a credit agreement and matters provided for in section 108. |
| (b) | A conduct standard referred to in paragraph (a) may only be made after consultation with the National Credit Regulator. |