Market Conduct in South Africa

Market Conduct in South Africa

KPMG’s Market Conduct Practice has deep skills and experience in delivering market conduct projects.

KPMG’s Market Conduct Practice assists business with compliance.

The commencement notice for the Financial Services Board (FSB), formally establishing the Financial Sector Conduct Authority (FSCA) and its sister organisation, the Prudential Authority has been signed.

The Financial Sector Conduct Authority (“FSCA”) will exercise their regulatory supervision within the financial services industry. This shift to a twin peaks supervisory environment will place renewed focus on conduct and specifically the fair treatment of customers. 

Implications for industry participants under the new conduct focused supervisory regime include the following: 

Monitoring and reporting on:

  • Conduct risk indicators
  • Adequacy and quality of data
  • Continuous improvement in product design and general customer experience through analysis of data
  • Consequence management of non-compliance and / or practices relating to poor customer outcomes by outsourced partners 

KPMG is able to offer you innovative thinking and analysis of your Market Conduct practices. 

KPMG is able to provide clients with an indicative assessment of the maturity of their Group Conduct Risk framework. Our extensive experience and list of credentials make us the leading market conduct practice in South Africa. We provide a deep understanding of conduct activity across the insurance, asset management and banking industry and have done so for some of the biggest banks and insurers in the country. Our connectedness with the regulator gives us insight into current areas of focus and challenge during FSCA supervision. 

KPMG are able to offer facilitated workshops allowing participants to distil the conduct themes, opportunities and risk indicators. The KPMG methodology is based on the UK conduct regulator’s Business Model and Strategy Analysis (“BMSA”). BMSA is utilised to identify conduct risks and highlight where outcomes for customers may be poor. 

KPMG’s globally developed Konduct tool facilitates the implementation of your conduct risk management operating model. Data can help you quickly and effectively bring the risk under control. The Konduct tool enables the effective use of data to drive customer experience. The tool ingests data from a variety of sources to automate conduct risk management information, incorporating issues management, root causes, predictive analytics, and data visualisation. This central view of risk helps drive cultural change across the organisation, whilst automating report generation and analytics. 

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