FSCA Issues Draft Conduct Standards for Benchmarks and Market Infrastructures

Posted 05 May 2026 Written by Acts Online
Category Financial Sector

Brought to you by SA Legal Academy: The Financial Sector Conduct Authority (FSCA) has invited stakeholders to comment on two draft conduct standards designed to regulate benchmark providers and market infrastructures.

In terms of the Financial Sector Regulation Act, No. 9 of 2017, the FSCA has issued these proposals to align the capital markets regulatory framework with the principles of the forthcoming Conduct of Financial Institutions (COFI) Bill. The drafts represent a refinement of discussion documents and proposals originally released for consultation in July 2024.

Draft Conduct Standard for Benchmark Provision

The draft conduct standard for benchmark provision was released alongside a communication dated 6 March 2026. This standard seeks to establish a formal regulatory regime for entities that provide, administer, or contribute to financial benchmarks in South Africa. Key focus areas include:

  • Governance and conflict of interest management within benchmark administrators;
  • Transparency in the methodology used to determine benchmarks; and
  • Input data integrity and the responsibilities of contributors.

The deadline for submission of comments on the benchmark provision standard is 6 May 2026.

Click here to download the draft conduct standard for benchmark provision and the accompanying communication.

Draft Conduct Standard for Market Infrastructures

The FSCA has also published a draft conduct standard for market infrastructures, which applies to exchanges, central securities depositories, and clearing houses. This draft incorporates feedback from the 2024 consultation process and focuses on the conduct of business and operational requirements for these entities.

Stakeholders have until 26 May 2026 to submit comments on this proposal.

Click here to download the draft conduct standard for market infrastructures.

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

  • For yourself: Review the draft standards to understand the shift toward COFI-aligned regulation, particularly if you hold compliance or oversight roles in capital markets.
  • For your business: Market infrastructures and benchmark administrators must conduct a gap analysis between current operations and the proposed governance and transparency requirements to prepare for future licensing conditions.
  • For your clients: Advise clients who utilize financial benchmarks in contracts or investment products that their providers will soon be subject to stricter FSCA oversight, potentially affecting data reporting and methodology disclosures.

Originally published at https://legalacademy.co.za/news/read/capital-markets-two-draft-conduct-standards-out-for-comment

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