FSCA strategic plan, mandate and progress made since the previous meeting; Germany Energy Transition Participation Report

Video The Select Committee on Finance received a briefing from the FSCA on its mandate, strategic plan, annual performance, and key regulatory initiatives. Members welcomed the presentation and focused their questions on the FSCA’s performance, implementation of the Conduct of Financial Institutions (COFI) Bill, pension fund arrears, unclaimed benefits, crypto asset regulation, consumer protection, transformation, and financial sector oversight. Members sought clarity on the FSCA’s achievement of 88.9% of its annual targets, asking which unmet targets had the greatest impact on consumer protection and market integrity, what corrective measures had been implemented, and how similar shortcomings would be avoided in future. Concerns were also raised about the financial and operational implications of the COFI Bill, including readiness planning, funding requirements, implementation timelines, and the potential impact on the Authority’s core functions. A significant portion of the discussion focused on unpaid pension fund contributions and unclaimed benefits. Members questioned the effectiveness of current enforcement measures, requested information on prosecutions and reductions in arrears, and raised concerns about the impact on pension fund members. Questions were also asked about tracing beneficiaries, public awareness initiatives, and cooperation with pension funds and other stakeholders. Members further discussed the regulation of Crypto Asset Service Providers, seeking assurance that the current supervisory framework provides adequate consumer protection and asking about enforcement actions against unlicensed operators. Additional concerns were raised regarding informal financial activities, insurance claims, funeral policies, transformation in the financial sector, online gambling, and South Africa’s efforts to address issues linked to grey-listing risks. Members expressed strong interest in the COFI Bill and requested a dedicated future briefing to examine its provisions in greater detail. The Committee subsequently adopted its report on Germany’s energy transition participation.