Status Update: Conduct of Financial Institutions (COFI) Bill

Posted 15 September 2025 Written by Acts Online
Category Financial Sector

Brought to you by SA Legal Academy: The Financial Sector Conduct Authority (FSCA) has confirmed that the draft Conduct of Financial Institutions (COFI) Bill is set for submission to Cabinet for approval, although its formal tabling in Parliament may be deferred to 2026.

In terms of the legislative roadmap for the Conduct of Financial Institutions (COFI) Bill, the FSCA recently clarified that the Bill remains in draft form. Despite recent reports suggesting imminent enactment, the Bill must still be approved by Cabinet, tabled in Parliament, processed through the relevant committees, and signed into law by the President before it becomes operational. Given the upcoming December 2025 and January 2026 parliamentary recess, the formal introduction of the Bill is likely to occur in the next legislative session.

The regulatory journey of the COFI Bill includes the following milestones:

  • December 2018: The first draft was released by National Treasury for public comment to establish a consolidated regulatory framework for financial institutions.
  • September 2020: A revised second draft was published on the National Treasury website, accompanied by a media statement and a stakeholder response document detailing revisions.
  • September 2025: The FSCA indicated that the Bill is now being prepared for Cabinet submission following a series of delays that postponed the initial January 2025 target for parliamentary tabling.

The Bill aims to provide a comprehensive and consistent regulatory framework for the conduct of financial institutions, replacing the current sectoral approach with a streamlined, activity-based model under the Twin Peaks regulatory system. Until the Bill is formally tabled and the subsequent regulations are drafted, the existing conduct provisions under various financial sector laws remain in force.

What this means for you, your business, or your clients

  • For yourself: No immediate individual compliance obligations exist at this stage; however, professional advisors should monitor the 2026 parliamentary schedule to track the Bill’s progression and the eventual publication of draft conduct standards.
  • For your business: Financial institutions should continue to align their internal governance with the principles outlined in the September 2020 second draft of the Bill, as these form the basis of the expected consolidated conduct framework.
  • For your clients: Advise clients that while the COFI Bill is not yet law, its eventual enactment will trigger a significant shift in how financial products and services are regulated, requiring a future overhaul of their compliance manuals and licensing structures.

Originally published at https://legalacademy.co.za/news/read/conduct-of-financial-institutions-bill-clarity-update

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