Financial Sector Regulation Bill & Committee Report on Bill: adoption

Meeting report

Chairperson’s opening remarks

The Chairperson welcomed everyone and indicated that the purpose of the meeting was to finalise the Committee Report on the Financial Sector Regulation Bill. There were 15 clauses that had been amended in the Bill including the amendment to the Financial Markets Act. The Committee had already gone through the Bill on a clause by clause basis with the assistance of Adv Frank Jenkins, Parliamentary Senior Legal Adviser. The Committee had received and responded to a written letter by Mr F Essack (DA, Mpumalanga) in relation to clause 137. The Committee should ensure that all necessary measures are undertaken before the Bill is taken to the National Council of Provinces (NCOP) plenary.

There had been apology from Ms T Motara (ANC, Gauteng).

Financial Sector Regulation Bill

Clause 37

The Chairperson stated that he will give Members an opportunity to comment on the Bill and the amendments that had been made so far.

Mr Essack firstly appreciated that the Chairperson was able to respond to a written letter about the amendment to clause 137. The main concern about clause 137 was around constitutional compliance of the clause.

Mr Roy Havemann, Chief Director: Financial Markets and Stability, National Treasury, explained that Members had already seen most of the proposed changes in clause 32, and that these changes are in line with advice from the Financial Intelligence Centre and Financial Service Regulatory Board. It is correct for Members to express concern when people are being searched without a warrant as this could infringe constitutional right. National Treasury sought legal opinion from Adv Jeremy Gauntlett and it was clear that the Bill was in line with the FICA Bill. Treasury proposed small changes to clause 137. Treasury was of the view that the entire Bill was now constitutionally compliant and this was because of small amendments that had been made to clause 137.

The Chairperson reiterated that the Committee had met last week and therefore a number of issues had already been covered.

Adv Jenkins said that he was in agreement with Treasury’s view on the Bill and specifically on the constitutionality of clause 137.

The Chairperson mentioned that he will table the “C” version of the Bill with the exclusion of schedule 4 for adoption by the Committee.

Mr S Mohai (ANC, Free State) moved for the adoption of the amended version of the Bill and seconded by Mr L Gaehler (UDM, Eastern Cape).

Mr Essack said that the Committee should note the DA's reservation with regards to the Bill.

Committee Report on Financial Sector Regulation Bill

The Chairperson explained that the Committee Report had already been circulated to Members and therefore the task today would be to note important aspects of the report and those that still required clarity. He highlighted that the Committee would still need to interrogate the financial implication of the Bill as this was part of the oversight. The Committee had noted that some of the issues raised by the stakeholders had been raised previously in the SCOF public hearings. These issues include transformation of the financial sector; increase of fees and levies and the Financial Sector Regulation Bill implementation process.

Mr Gaehler moved for the adoption of the Report and was seconded by Mr Mohai.

Mr Essack once again requested the Committee to note the reservation of the DA in respect of the Committee Report.

The Report was adopted as is.

The Chairperson appreciated the effort of Members and Treasury in ensuring that the Report was considered and adopted.

The meeting was adjourned.