FSCA Draft Conduct Standard for Securities Financing Transactions

Posted 04 September 2025 Written by Acts Online
Category Financial Sector

Brought to you by SA Legal Academy: In terms of the Financial Markets Act, No. 19 of 2012, the Financial Sector Conduct Authority (FSCA) has published a draft conduct standard for securities financing transactions (SFTs) for public consultation.

The draft conduct standard aims to regulate market participants involved in securities lending, borrowing, and repurchase agreements. While the FSCA initially commenced work on this regulatory framework several years ago, the project was reprioritised following the 2018 commencement of the Financial Sector Regulation Act, No. 9 of 2017. The current proposal is supported by a statement of need that outlines the regulatory gaps the standard is intended to address.

The FSCA seeks to enhance market transparency and mitigate risks associated with SFTs by establishing formalised conduct requirements. This includes ensuring that market participants maintain appropriate records and adhere to specific disclosure obligations to protect the integrity of the financial markets.

Stakeholders and interested parties are invited to submit written comments on the draft conduct standard and the accompanying statement of need by no later than 17 October 2025.

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

  • For yourself: No direct individual obligations; impact is channelled through firm-level compliance and professional advisory responsibilities.
  • For your business: Financial institutions participating in SFT markets must perform a gap analysis between the draft standard and current internal controls to prepare for future compliance and reporting requirements.
  • For your clients: Advise clients engaged in securities lending or repo transactions to review the proposed standard and submit comments by the 17 October 2025 deadline to ensure their operational interests are considered.

Originally published at https://legalacademy.co.za/news/read/securities-financing-transactions-input-sought-on-draft-conduct-standard

The views expressed herein are those of the author and do not necessarily reflect those of Acts Online. Acts Online accepts no responsibility for the accuracy, completeness or fairness of the article, nor does the information contained herein constitute advice, legal or otherwise.