PHASING IN CONDUCT OF BUSINESS RETURNS

The FSCA has published a roadmap for the implementation of the cross-sectoral conduct of business returns (Omni-CBR)

The Authority said in their communications that the Omni-CBR is intended to facilitate streamlined cross- sectoral statutory reporting setting out the conduct indicators to be reported on by financial institutions registered with the FSCA.

Omni-CBR Roadmap

The Authority further commented that the Omni-CBR Framework is aligned to the CoFI Bill and will form the cornerstone of their supervisory toolkit and reflects their increased focus on embedding an evidence-based and data-driven approach to regulation and supversion.

According to the roadmap, the Omni-CBR will be rolled out in fourphases starting June 2022 andinplace by June 2026.

Phase 1 ( June to August 2022)

Consultation on terminology and data requirements Webinars to

• explain the Omni-CBR and the rollout plan; Publishing
• the roadmap and draft templates; and
• Hosting workshops and obtaining comments on the draft template.

August to October 2022

• Collecting and reviewing input received from the workshops and comments.

October to December 2022

• Engaging on specific comments and updating the draft template.

First-quarter of 2023

• Publishing the second draft of templates; and
• Starting Phase 2

Phase 2 (2023)

Assessment of systems and operational impact

• Pilot reporting by the industry to assess systems and operational impact;
• Alignment with internal FSCA systems and digital transformation developments; and
• Consider potential further regulatory harmonization and CoFI impact.

Phase 3 (2024)

Two-year transitional reporting

• During the transitional period, reporting will be phased in based on the readiness of the different sectors and entity types.

Phase 4 (2026)

Steady state post COFI final implementation

• Full and final statutory conduct reporting across all sectors on a quarterly basis.

FSCA Webinars

The FSCA released a three-part webinar series that covers all you need to know, regarding the Omni-CBR.

The webinars can be found on the FSCA’s YouTube channel, and focus on the following:

Part 1:

• General guidance on navigation and templates; and
• Contextual and regulatory background to the development of the Omni-CBR. Right-click here

Part 2:

• Provide a detailed explanation of the information required in the “All sheets”. These are the sheets that must be completed by all financial institutions across all sectors pertaining to general information. Right-click here

Part 3:

• Explains the ‘Additional business composition sheets” that apply to financial institutions in certain sectors only.
• The aim is to obtain information about specific risks and trends applicable to that sector. Right-click here

Interactive workshops

The Authority said, “the workshops are intended to be an interactive platform for stakeholders to present initial questions, comments, and concerns relating specifically to the terminology used and types of indicators identified in the draft Omni-CBR template”.

The workshops will be hosted on Microsoft Teams on the following dates:

• Insurers and micro-insurers: 21 June 2022, 1pm to 4:30pm
• Retirement funds and retirement fund benefit administrators: 22 June 2022, 9:30amto 1:30pm
• Co-operative financial institutions: 30 June 2022, 9am to 12:30pm
• Investment providers: 4 July 2022, 10amto 1pm
• FSPs with annual revenue of fund value of more that R5 million: 7 July 2022, 1:30pmto 4:30pm
• FSPs with an annual revenue of fund value of less than R5 million: 8 July 2022, 10amto 1pm
• Banks: 12 July 21022, 10:30amto 1:30pm

Licensed FSPs may register for and attend the workshop that is most convenient and relevant to them.

Submissions and comments

You can download the roadmap and draft template of the Omni-CBR on the FSCA’s website www.fsca.co.za (Regulatory framework>Documents for consultation>General FSCA legislation>FSCA Communication 16 of 2022) . The FSCA invites stakeholders to provide written comments on the draft Omni-CBR template. All comments must be submitted via the FSCA’s “Comments” portal, which can be accessed by going to www.fsca.co.za (Regulated entities>E-services)