Chairperson, hon Deputy Minister and hon colleagues, at the outset, I want to state categorically that the DP supports this Bill. To us in the DP good supervision of the financial sector is of critical importance and therefore we support this Bill.
The Financial Services Board Amendment Bill deals primarily with a large number of technical amendments applicable to the operations of the Financial Services Board. Improving the operations of the Financial Services Board could only be positive and therefore we support these improvements. The Financial Services Board, or the FSB, as it is commonly known, plays an oversight role in respect of participants in the financial services industry other than banks or mutual banks, which are controlled by the Banks Act, Act 94 of 1990, or the Mutual Banks Act, Act 124 of 1993.
The oversight roles that the FSB has over insurance and investment companies are of critical importance to the ordinary man in the street. We all have short-term and long-term insurance and we all invest in our pension schemes. We trust that the FSB will ensure that our financial investments will be financially well managed for our long-term wellbeing.
The most important issues of the Financial Services Board Amendment Bill are covered in clauses 1 and 2 of the Bill and relate to the refining of the nature of the supervision which the board has to carry out. There was uncertainty as to the precise nature of the supervision required, which was highlighted by some court judgments.
There are some bodies which are not happy because they believe that the board, as a whole, may take over the many functions currently performed by the registrar as designated in a number of the Acts governing the financial services industry. In practice, however, the executive officer of the Financial Services Board is also the registrar in terms of the various Acts, and it does not therefore seem illogical that he or she should have guidelines laid down by the Financial Services Board. The amendments with regard to the supervision were supported by all the parties in the select committee and we also support these supervisory aspects.
The new three-tier approach to decisions is also welcomed by the DP. At the first level, that of significant decisions, the board has to approve the decisions. At the second level, the executive officer makes decisions within guidelines set by the board. At the third level, that of less significant decisions, the executive officer can make his or her own decisions.
'n Verdere belangrike aspek van die nuwe Wysigingswetsontwerp op die Raad op Finansile Dienste vind ons in klousule 2 van die wysigingswetsontwerp, wat die volgende paragraaf by artikel 3 van die hoofwet invoeg:
Die werksaamhede van die raad is om -
Programme en inisiatiewe deur finansile instellings en liggame wat die finansile dienstebedryf verteenwoordig om gebruikers en potensile gebruikers van finansile produkte en dienste in te lig en voor te lig, te bevorder.
Hierdie is nuwe inisiatiewe waaroor die DP verheug is. Ons sien baie uit na hierdie programme en inisiatiewe wat die raad kan loods om verbruikers in te lig. Vandag is dit uiters noodsaaklik vir enige organisasie om verbruikersvriendelik te wees, en hierdie is 'n positiewe ontwikkeling.
Hierdie aspek is ook bespreek in die gekose komitee en ek het toe reeds lede van die raad wat daar was daarop gewys dat dit nie nodig is om die wiel weer te herontwerp nie. Baie universiteite en technikons bied reeds programme in hierdie verband aan wat van groot hulp kan wees om hierdie programme en inisiatiewe te steun.
Dit sal vir die gebruikers van hierdie produkte en dienste van onskatbare waarde wees om baie goed ingelig te word voordat enige geld bel word. (Translation of Afrikaans paragraphs follows.) [A further important aspect of the new Financial Services Board Amendment Bill is to be found in clause 2 of the amending Bill, which inserts the following paragraph into section 3 of the principal Act:
The functions of the board are to -
(c) Promote programmes and initiatives by financial institutions and bodies representing the financial services industry to inform and educate users and potential users of financial products and services.
These are new initiatives about which the DP are delighted. We are very much looking forward to these programmes and initiatives that can be launched by the board to inform consumers. Today it is absolutely essential for any organisation to be consumer-friendly, and this is a positive development.
This aspect was also discussed in the Select Committee and already at that stage I pointed out to members of the board who were present that it was not necessary to reinvent the wheel. Many universities and technikons are already presenting programmes in this regard, which can be of great assistance in supporting these programmes and initiatives. It will be invaluable to the users of these products and services to be very well informed before any money is invested.]
In conclusion, as hon members could have deduced by now, the DP feels positive about this legislation and therefore we support it. We will definitely take part in the oversight role that we have over these bodies and hope to play a positive role to ensure that the consumers out there will get good financial products and services to ensure them a good and prosperous future. [Interjections.]