FINANCIAL SECTOR: SYNTHETIC CENTRE FRAMEWORK OUT FOR COMMENT

The South African Reserve Bank (SARB) has released and called for input on a draft synthetic financial centre framework intended to ‘enable approved institutions to manage qualifying foreign portfolios and related foreign currency investment activities from South Africa’. The deadline for comments is 30 November 2026.

According to the media statement announcing this, the draft framework was developed as part of an ongoing reform process aimed at:

  • deepening financial markets
  • enhancing the competitiveness of South Africa’s financial sector
  • attracting ‘investment management activity’ locally, and
  • supporting ‘skills depth’.

This is noting that the term ‘synthetic financial centre’ refers to ‘a modern formulation to facilitate a financial hub through legal, regulatory and tax arrangements that allow transactions to be conducted in a particular jurisdiction … even though the investors or assets are located elsewhere’.

Published by SA Legal Academy Policy Watch

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