What this page covers
South Africa splits financial regulation in two. The Prudential Authority makes sure institutions stay solvent; the FSCA makes sure they treat customers properly. Most large institutions answer to both.
| Regulator | Concern | Regulates |
|---|---|---|
| Prudential Authority | Safety and soundness | Banks, insurers, financial conglomerates |
| FSCA | Market conduct | All financial institutions, including banks |
| Reserve Bank | Financial stability | The system as a whole |
| National Credit Regulator | Credit provision | Credit providers |
| Financial Intelligence Centre | Money laundering | Accountable institutions |
| Requirement | Applies to | Purpose |
|---|---|---|
| Minimum capital | Banks and insurers | Absorb losses |
| Liquidity coverage ratio | Banks | Survive a thirty-day stress |
| Solvency capital requirement | Insurers | Meet obligations under stress |
| Stress testing | Large institutions | Test resilience |
| Fit and proper for directors | All | Governance |
| Recovery and resolution plans | Systemically important banks | Orderly failure |
| Type | Prudential Authority | FSCA |
|---|---|---|
| A bank offering trading | Yes | Yes |
| An insurer | Yes | Yes |
| An FSP that is not a bank | No | Yes |
| A CFD broker | No | Yes |
| A collective investment scheme manager | No | Yes |
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Every table on this page as a spreadsheet, with the source and the date it was checked in the header rows.
⬇ Download CSVHow these figures work
The figures on this page come from the body that publishes them and change on a schedule rather than continuously, which is what makes them worth keeping in one place. A CFD broker is regulated by the FSCA for conduct but is not prudentially regulated. There is no capital requirement of the kind a bank faces, which is part of why segregation of client funds matters so much.
Deposit insurance arrived with the Corporation for Deposit Insurance in 2024, covering qualifying bank deposits up to R100,000 per depositor per bank. It does not cover a trading account.
★ What this means in practice
The Twin Peaks model came into effect in 2018 under the Financial Sector Regulation Act.
✕ Common mistakes
- A CFD broker is regulated by the FSCA for conduct but is not prudentiall. A CFD broker is regulated by the FSCA for conduct but is not prudentially regulated. There is no capital requirement of the kind a bank faces, which is part of why segregation of client funds matters so much.
- Deposit insurance arrived with the Corporation for Deposit Insurance in . Deposit insurance arrived with the Corporation for Deposit Insurance in 2024, covering qualifying bank deposits up to R100,000 per depositor per bank. It does not cover a trading account.
- The Twin Peaks model came into effect in 2018 under the Financial Sector. The Twin Peaks model came into effect in 2018 under the Financial Sector Regulation Act.
- Taking a figure without its date. A number from a reference page is only as good as when it was last checked, which is why the date sits at the top of this one.
Notes on reading these figures
- A CFD broker is regulated by the FSCA for conduct but is not prudentially regulated. There is no capital requirement of the kind a bank faces, which is part of why segregation of client funds matters so much.
- Deposit insurance arrived with the Corporation for Deposit Insurance in 2024, covering qualifying bank deposits up to R100,000 per depositor per bank. It does not cover a trading account.
- The Twin Peaks model came into effect in 2018 under the Financial Sector Regulation Act.
To put these figures to work, The FSCA FSP Licence Categories runs the arithmetic on your own numbers; South African Financial Laws covers the same ground in ordinary language; Broker asset protection schemes goes into the detail this table only summarises; Segregated client accounts is the related figure worth reading beside it; and FSCA Enforcement and Penalties covers what this page leaves out.
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Frequently asked questions
What is Twin Peaks?
Splitting financial regulation between prudential soundness and market conduct. It came into effect in 2018.
Is my CFD broker prudentially regulated?
No. An FSP that is not a bank has no capital requirement of the kind a bank faces, which is why segregation of client funds matters.
Is my trading account covered by deposit insurance?
No. The Corporation for Deposit Insurance covers qualifying bank deposits up to R100,000, not a trading account.
Who regulates a bank?
Both: the Prudential Authority for soundness and the FSCA for conduct.
What is the liquidity coverage ratio?
The buffer a bank must hold to survive a thirty-day stress scenario.
Where does the Reserve Bank fit?
It houses the Prudential Authority and is responsible for financial stability across the system.