SECURITIES FINANCING TRANSACTIONS: INPUT SOUGHT ON DRAFT CONDUCT STANDARD

SECURITIES FINANCING TRANSACTIONS: INPUT SOUGHT ON DRAFT CONDUCT STANDARD

• 04 September 2025
• Financial Sector
• SA Legal Academy

The Financial Sector Conduct Authority (FSCA) has called for input by 17 October 2025 on a draft conduct standard for securities financing transactions under the 2012 Financial Markets Act. This is noting that, according to an FSCA communication announcing the move:

• there is no ‘holistic framework’ regulating the entering into and intermediation of securities financing transactions
• technical research into the practices and risks entailed domestically was conducted in 2016/17, followed by ‘targeted engagements’
• informed by concerns raised during these processes:
  • in 2017 input was sought on proposed ‘conditions for securities lending for pension funds’, and
  • in 2020 a draft ‘securities lending conduct standard’ was released for public comment.

However, following the 2018 commencement of the 2017 Financial Sector Regulation Act, focus areas and activities were reprioritised. As a result, the draft conduct standard appears to have been left in limbo.

Against that backdrop, the proposals now open for public comment are underpinned by a statement of need released with the draft.

• draft conduct standard
• statement of need
• communication
• comments template

Published by SA Legal Academy Policy Watch

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