President Jacob Zuma has signed into law the Financial Sector Regulation Act, 2017.
"The Act aims to achieve a financial system that works in the interests of financial customers, and supports balanced and sustainable economic growth in the Republic, by establishing, in conjunction with other financial sector laws, a regulatory and supervisory framework," the Presidency said on Monday.
The supervisory framework promotes financial stability, the safety and soundness of financial institutions, as well as the fair treatment and protection of financial customers.
According to the Presidency, the framework also promotes the efficiency and integrity of the financial system; the prevention of financial crime; financial inclusion, as well as the transformation of the financial sector.
It also promotes confidence in the financial system.
The Act also establishes two new financial sector regulators, the Financial Sector Conduct Authority and the Prudential Authority with jurisdiction over all financial institutions, and to provide them with a range of supervisory tools to fulfil their objectives.
It further provides for, and ensures that there is co-operation and collaboration between the financial sector regulators, the National Credit Regulator, the Financial Intelligence Centre and the South African Reserve Bank.