The Financial Sector Conduct Authority (FSCA) has published the Conduct Standard for Banks on Wednesday. The regulation is aimed at protecting financial customers.
The regulation could see banks fined if they are found to have unfairly treated their customers.
This week the Conduct Standard for Banks has come into effect. It’s important to know your rights as a banking customer.
— FSCA (@FSCA_ZA) July 8, 2020
This is even more protection for the South African consumer. There is now a formal bank-specific law which governs how banks treat and interact with their customers.
The Banking Conduct Standard will force all banking institutions to treat their customers fairly.
The FSCA says unethical conduct by banks could lead to penalties against them. Banks are required to put preventative measures in place or could have their license to operate or selling products withdrawn.
The FSCA says it has received support from the banking sector on the new regulation.
Head of Banks and Payment Providers Supervision at the FSCA Sindiswa Makhubalo discusses the Conduct Standard for Bank: