Cofi Bill a path to financial equity in SA

IF STEERED on the helm of transformation, fairness and transparency, South Africa’s financial services sector could be a vital vessel of democracy, helping to navigate the nation away from economic marginalisation and financial inequality.

- KIM HELLER

On the horizon is the Conduct of Financial Institutions (Cofi) Bill. With its developmental thrust and accountability propellers, COFI provides hope for a fairer and more equitable financial services landscape.

The bill sets out a path to transformation and greater regulatory cohesion and accountability. It brings better alignment between the BBEE Act and the Financial Sector Code while enhancing the powers of the Financial Sector Conduct Authority (FSCA) to overturn discriminatory decisions and seek court orders.

With a new developmental deck that makes entry and participation easier, Cofi could be an effective springboard for greater inclusion and participation. However, the history of failed financial legislation in South Africa reminds us of how even solid policies can sink without implementation and oversight.

For now, racial gulfs in financial participation and financial prosperity continue to shipwreck financial parity and sully forecasts for a more inclusive and equitable society.