Financial Sector Regulation Act: Transitional Arrangements Extended

Posted 28 November 2025 Written by Acts Online
Category Financial Sector

Brought to you by SA Legal Academy: National Treasury has gazetted a notice extending the transitional arrangements for medical schemes, collective investment schemes, pension funds, and friendly societies under the Financial Sector Regulation Act, No. 9 of 2017.

The notice, issued in terms of the Financial Sector Regulation Act, No. 9 of 2017, extends the period for transitional arrangements that govern how various financial institutions are regulated during the shift to the ‘Twin Peaks’ model. These arrangements are essential for maintaining regulatory continuity while the Prudential Authority and the Financial Sector Conduct Authority (FSCA) finalise the implementation of new conduct and prudential standards.

The extension specifically impacts the following entities:

  • Medical schemes as defined in the Medical Schemes Act, No. 131 of 1998;
  • Collective investment schemes under the Collective Investment Schemes Control Act, No. 45 of 2002;
  • Pension funds governed by the Pension Funds Act, No. 24 of 1956; and
  • Friendly societies registered under the Friendly Societies Act, No. 25 of 1956.

This regulatory step ensures that the repeal or amendment of certain provisions in the underlying industry-specific legislation, as contemplated in Section 290 of the Financial Sector Regulation Act, No. 9 of 2017, does not result in administrative or legal vacuums for the affected sectors.

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

  • For yourself: No direct individual obligations; professional focus should remain on monitoring the eventual full implementation dates for FSRA conduct standards.
  • For your business: Firms must ensure that compliance frameworks for pension funds and medical schemes continue to align with the existing transitional provisions rather than prematurely migrating to the final FSRA state.
  • For your clients: Clients in the affected sectors should be informed that their current regulatory reporting and licensing requirements under their respective primary Acts remain governed by the transitional arrangements, providing continued legal certainty.

Originally published at https://legalacademy.co.za/news/read/financial-sector-regulation-act-transitional-arrangements-extended

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