The FSCA Just Mapped the Next Three Years. Are You Ready?
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The rules of financial services are changing. Not overnight, and not all at once. But the Financial Sector Conduct Authority (FSCA) has just published its 2026 Three-Year Regulation Plan, and if you advise clients in the financial sector, this is the roadmap you need to understand.
On 3 July 2026, in a press release the FSCA published its 2026 Three-Year Regulation Plan, covering the period 1 April 2026 to 31 March 2029. The plan is not a list of new laws. It is a transparency tool, a forward-looking signal of where the FSCA is heading, what it is working on, and when it expects to consult the public. For financial institutions and their accountants and advisors, this gives valuable lead time to prepare. The FSCA reviews and updates this plan every year to keep it relevant to market conditions and emerging risks.
The Big Picture: A Shift in How Financial Services Will Be Regulated
The plan signals a clear direction that South Africa's financial sector is moving away from fragmented, rules-heavy regulation towards a more principles-based, outcomes-focused approach. In plain terms, this means regulators will care less about whether you followed a specific rule to the letter, and more about whether your clients were treated fairly and received good outcomes.
The vehicle driving this shift is the Conduct of Financial Institutions Bill (COFI Bill). This is the most significant reform in South African financial services in years, and the FSCA describes it as central to reshaping the entire conduct regulatory landscape.
Importantly, the COFI Bill has already cleared a major milestone. In late March 2026, Cabinet officially approved it for submission to Parliament. On 17 April 2026, the Minister of Finance published the notice of its introduction to the National Assembly.
The Key Focus Areas
The plan identifies several priorities for the next three years. Here is what matters most for accountants and financial practitioners:
The COFI Bill and harmonised frameworks
During the next three years, the FSCA will continue developing core themed frameworks that will underpin the COFI Bill. These include a draft Fit and Proper Framework, a draft Risk Management and Internal Controls Framework, and a draft Complaints Management Framework. These will be introduced on a staggered basis, with public consultation opportunities.
Note: the FSCA has confirmed that no new insurance-specific or FAIS-specific interventions are planned for this three-year period. Those matters will be addressed as part of the broader COFI transition later.
Joint Standards on governance and operational resilience
The FSCA and the Prudential Authority are developing several Joint Standards that will apply across the financial sector:
▪️A Joint Standard on Governance, with public consultation expected between January and June 2027
▪️A Joint Standard on Beneficial Ownership of Financial Institutions. This is a priority because of South Africa's ongoing work to exit the FATF grey list. Consultation is expected within the next six months.
▪️A Joint Standard on Third-Party Service Provision (outsourcing), with public consultation also expected between January and June 2027.
▪️Cross-sector licensing requirements, with consultation anticipated in April 2028.
Technology, AI, and data governance
The FSCA has flagged artificial intelligence and data risk management, cloud computing, and open finance as new and emerging focus areas. Institutions will need to demonstrate that their use of technology does not create unfair outcomes for clients.
Sustainable finance and ESG
The FSCA published its Sustainable Finance Update Report 2026 alongside the plan. ESG-related disclosures remain a growing supervisory area.
The ZARONIA transition
South Africa is moving from the JIBAR benchmark to South African Rand Overnight Index Average (ZARONIA) by 31 December 2026. This affects financial contracts, loan agreements, and derivatives linked to JIBAR. Practitioners advising clients with such instruments need to be tracking this deadline closely.
Why This Plan Matters to Practitioners
The honest reality is that many of these changes are not new. Several priorities from the 2024 and 2025 Regulation Plans remain on the list, with some timeline adjustments. The FSCA has been deliberate about not overwhelm the sector with too many simultaneous changes. Its own words in the plan acknowledge "the cumulative impact of legislative reform" and commit to limiting new projects where possible.
But the direction of travel is locked in. Institutions that wait until frameworks are finalised before thinking about governance, conduct risk, operational resilience, and client outcomes will be scrambling. Those that start preparing now will find consultation and implementation far easier to manage.
For your clients in the financial sector, the practical implications include:
Governance and board accountability will come under increased scrutiny.
Outsourcing and third-party arrangements will need to meet new formal standards.
Technology governance, including AI tools, will be a supervisory focus.
Beneficial ownership transparency will become a compliance requirement across more financial institutions.
Customer outcomes, not just process compliance, will be the measure of success.
What You Can Do Right Now
If you advise financial services clients, here is where to focus:
Brief your clients on the COFI Bill and what outcomes-based regulation means in practice for their business.
Review their governance and board structures now, ahead of the Joint Standard on Governance consultation in early 2027.
Check all contracts linked to JIBAR and flag the 31 December 2026 ZARONIA transition deadline.
If clients use third-party service providers for technology or processing, start mapping those arrangements ahead of the outsourcing standard consultation.
Raise beneficial ownership compliance now, especially for clients that are accountable institutions under FICA.
The FSCA has given the market a roadmap. The practitioners who use it will deliver real value. The ones who ignore it will be reactive when it is too late.