At the centre of the conference was the Conduct of Financial Institutions (COFI) Bill, which was positioned as a defining moment in South Africa’s regulatory journey. Rather than introducing an entirely new compliance burden, COFI represents a fundamental shift in regulatory philosophy. The emphasis moves from prescriptive, rules-based compliance to an outcomes-driven framework that prioritises fair treatment of customers across the value chain. Importantly, this shift places boards and senior management at the forefront of accountability, particularly in shaping institutional culture and embedding customer outcomes in decision-making.

This evolution is taking place against a backdrop of increasingly complex and interconnected risks. The conference highlighted how digitalisation, open finance, cybersecurity and artificial intelligence are reshaping the financial ecosystem. These developments are not confined to individual sectors but cut across traditional regulatory boundaries, requiring a more harmonised, technology-neutral approach to supervision. In this context, the FSCA’s move toward principles-based regulation reflects recognition that flexibility and adaptability will be critical to responding to emerging risks.

Artificial intelligence has emerged as both a catalyst for innovation and a source of new regulatory challenges. On the one hand, AI is enabling significant efficiency gains, enhancing customer experiences and supporting the development of more sophisticated financial products. On the other hand, it introduces risks related to data governance, bias, cybersecurity and transparency. The discussions emphasised that while existing regulatory frameworks remain broadly applicable, there is a growing need for robust governance, clear accountability and enhanced supervisory capability to ensure responsible deployment of AI within the financial sector.

Alongside technological change, the conference underscored the growing importance of environmental, social and governance (ESG) considerations. Global trends point to continued growth in sustainable finance, with rising issuance of sustainable debt instruments and a greater focus on climate adaptation and resilience. At the same time, new areas of thematic financing including carbon capture and digital inclusion, are gaining traction. These developments highlight the extent to which ESG considerations are becoming financially material, influencing both risk management and strategic decision-making within financial institutions.

Another area of focus was financial education and consumer empowerment. The FSCA reaffirmed its commitment to improving financial literacy through its Financial Education Plan and a range of outreach initiatives across multiple platforms. The introduction of conduct standards for financial education initiatives signals a clear expectation that financial institutions will play a proactive role in supporting informed consumer decision-making and promoting fair outcomes.

Taken together, the themes emerging from the conference point to a financial sector that is becoming more integrated, more accountable and increasingly forward-looking. The transition to an outcomes-based regulatory framework, together with the growing influence of technology and sustainability considerations, will require institutions to move beyond reactive compliance towards a more proactive and strategic approach to conduct, governance and risk management.

As the regulatory landscape continues to evolve, ongoing engagement with the FSCA, including through its official communication channels and social media platforms will be essential to ensure that industry participants remain informed and prepared for the changes ahead.