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Definition

A juristic person within the South African Reserve Bank (SARB) responsible for the regulation of the banking sector, the insurance industry, cooperative financial institutions, financial conglomerates and certain market infrastructures. With the advent of the Financial Services Regulation (FSR) Act, signed into law in August 2017, a new regulation model was proposed, known as the Twin Peaks model, which is a new regulatory environment for the banking and financial markets. Three important changes are brought into effect by the FSR Act, namely a specific mandate given to the SARB to maintain and enhance financial stability; the creation of the Prudential Authority which is responsible for regulating the banking and financial markets; and the establishment of a market conduct regulator independent of the SARB, previously the Financial Services Board. The PA consists of 4 departments: the Financial Conglomerate Supervision Department; the Banking, Insurance and Financial Market Infrastructures Supervision Department; the Risk Support Department; and the Policy, Statistics and Industry Support Department.

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