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Regulatory Framework Twin Peaks Regulatory Bodies

South Africa's 'Twin Peaks' model of financial regulation refers to which two primary regulators?

RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.

  1. a) The South African Reserve Bank and the National Treasury.
  2. b) The Prudential Authority (PA) and the Financial Sector Conduct Authority (FSCA).Correct
  3. c) The FSCA and the FAIS Ombud.
  4. d) The FSCA and the Financial Intelligence Centre (FIC).

Why this is the answer

The 'Twin Peaks' model, introduced by the FSR Act, created two main regulators: The Prudential Authority (PA) (Peak 1, for prudential soundness) and the Financial Sector Conduct Authority (FSCA) (Peak 2, for market conduct).

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