SAIFM’s Regulatory Summit has solidified its standing as the premier platform for productive debate on financial regulation while playing a key role in providing first-hand information and promoting understanding and debate on financial regulation. In addition, SAIFM’s track record in the field of financial regulation is unrivalled. The Regulatory Summit, now in its fourth year, provides a unique opportunity for regulatory authorities to communicate with financial markets participants and gives delegates the opportunity to engage with regulatory authorities and fellow professionals.
Governance failure forms part of the regulatory risks that are faced by the public and private sector. Not managing these risks appropriately may lead to legal liability or regulatory sanctions which could present a firm with threats such as large fines or even the loss of a licence to operate. In the case of the public sector, consequences may be even harsher and lead to political and constitutional challenges. It is thus particularly relevant to discuss the new King Code as well as governance in the public sector.
The world has moved away from short term profit at any cost. A financial capital market system has been replaced by inclusive capitalism.
There is general acceptance in the changed world of the 21st century that organisations have to concern themselves with the effects of how they make their money on the economy, society and the environment.
Any large-scale program or project requires serious governance and oversight by regulators of their implementation to ensure compliance by participants and that the best intentions of policymakers are not lost due to an inability to measure, monitor and correct actions and outcomes. Examples of such programs are the REIPP Programme and the SASSA system implementation for social grant payments. Our panel of market practitioners will discuss lessons learnt and what regulators should do to assess appropriate implementation and encourage appropriate behaviour by participants to ensure the achievement of the desired social and economic good.
The second Directive on Markets in Financial Instruments (MiFIDII) and the accompanying Regulation (MiFIR), applicable from 3 January 2018, applies to financial industry participants that do business with European firms. The goals thereof broadly include increased transparency, a shift towards more structured market places, lower cost market data, ensuring best execution, orderly trading behaviour within markets and more explicit costs of trading and investing. This legislation will apply to non-EU firms with regard to aspects such as research unbundling, charging commission rules, order execution obligations and compliance requests. It is thus necessary for South African financial market participants and practitioners to be prepared for the impact that these developments may have on the South African financial markets. Quinten Bertenshaw from ETM Analytics will highlight how financial market practitioners should prepare for this development.
Regulators are faced with one of their biggest challenges to date: to balance technological innovations with investor protection and stability. How can regulators oversee the market in such rapidly changing times as the advances in blockchain technology unfold? Tanya Knowles from Strate, a licensed central securities depository, will demonstrate case studies from around the world of the various regulatory approaches.
Large financial institutions often participate in cross border transactions that may prove to be particularly complex in terms of the large number of rules and regulations that apply, the extra-territorial nature of certain laws and well as possible sanctions if compliance fails. For example, failure to comply with enhanced due diligence for politically exposed persons or doing business with sanctioned countries may expose banks in particular to large fines. Particular care must be taken with the compliance programme to ensure that all issues are analysed in advance to ensure local as well as international regulations are complied with. The relevance of this topic is self-evident and it will be useful to debate the risks and challenges faced by South African wealth managers.
SAIFM is proud to present another cutting edge programme to our members and the financial markets as a whole.