Madam Chair and hon members, the world we live in today, the so-called global village, has seen a proliferation of financial services and institutions of all types. In fact, these account for major transactions and flows of capital which have a large impact on the direction of economic activity globally.
Thus, it becomes important to ensure that our regulatory regime can cope with the dynamism of today's world, while at the same time protecting our people's interests. These particular amendments are not of major consequence, but serve to clarify certain aspects of the principal Act and to regularise, through legislation, certain practices.
Firstly, through these amendments we create a hierarchy of decision-making that clarifies the relationship between the board and the executive of the FSB. Secondly, we seek to describe more simply and clearly the functions of the board, so that instead of supervising the exercise of control, the board will supervise compliance with laws regulating financial institutions and the provision of financial services. Thirdly, the FSB will now, as part of its work, engage in consumer education which is particularly important in the South African historical context of inequitable access to information, financial institutions and markets generally. Fourthly, the amendments relieve the President of the function that relates to the appointment of members of the board, which is now to be exercised by the Minister of Finance, as the FSB falls under him and as he already exercises other functions such as the appointment of the executive of the FSB and members of the board of appeal. Fifthly, we expand the representation of the executive committee to include administration and finance.
We also make it obligatory for consultation with the financial services industry before imposing levies through which the FSB activities are funded. Other amendments do the following: they streamline procedures that relate to consultation between the Minister of Finance and the board and the executive. They also relax the secrecy provision of the FSB somewhat by making it possible for it to exchange information with other local regulators and self-regulatory bodies and to assist foreign regulatory and supervisory authorities, provided that it is not against the public interest. They also redefine limitation of the FSB's liability incurred in the course of the performance of its functions to make it clear that gross negligence will not be tolerated. We also regulate, through these amendments, the use of the logo of the FSB.
Importantly, however, we make changes to the composition of the board of appeal. Previously, one member of the FSB board needed to serve on the board of appeal.
We have seen this as possibly in conflict with the Constitution, in that the board member may have been directly or indirectly a party to a decision on which an appeal has been noted. The board of appeal will now be constituted by a lawyer, an accountant and a party acquainted with the financial services industry, all of them having wide experience and expert knowledge of their fields of expertise.
Provision is also made for alternate members to be appointed to each of the members of the board of appeal, as well as the co-option of an assessor to assist the board if that should be deemed necessary. The noting of an appeal will not have the effect of suspending the registrar's decision, with the proviso that the board of appeal may on the application of an interested party, direct otherwise. Possible orders which the board of appeal may issue have been extended to include a referral back to the registrar, as well as an order of costs in accordance with the procedures of the High Court. These are all the amendments that we are effecting to this Bill, through which we really intend to improve the legislation. [Applause.]