Fintech—South Africa—Q&A guide
Fintech—South Africa—Q&A guide

The following TMT practice note provides comprehensive and up to date legal information covering:

  • Fintech—South Africa—Q&A guide
  • 1. What is the general state of fintech innovation in your jurisdiction?
  • 2. Do government bodies or regulators provide any support specific to financial innovation? If so, what are the key benefits of such support?
  • 3. Which bodies regulate the provision of fintech products and services?
  • 4. Which activities trigger a licensing requirement in your jurisdiction?
  • 5. Is consumer lending regulated in your jurisdiction?
  • 6. Are there restrictions on trading loans in the secondary market in your jurisdiction?
  • 7. Describe the regulatory regime for collective investment schemes and whether fintech companies providing alternative finance products or services would fall within its scope.
  • 8. Are managers of alternative investment funds regulated?
  • 9. Describe any specific regulation of peer-to-peer or marketplace lending in your jurisdiction.
  • More...

Fintech—South Africa—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to fintech in South Africa published as part of the Lexology Getting the Deal Through series by Law Business Research (published: July 2020).

Authors: Bowmans—David Geral; Kirsten Kern; Livia Dyer; Claire Franklyn; Xolani Nyali; Bright Tibane

1. What is the general state of fintech innovation in your jurisdiction?

South Africa has a vibrant fintech environment, including:

  1. fintech start-ups as well as product development teams at traditional, established financial institutions, primarily in remittances, microfinance, personal and commercial insurance, investment, mobile payments, peer-to-peer lending offerings and virtual token exchanges;

  2. funders servicing the spectrum from venture capital through to more traditional equity and debt funding arrangements;

  3. a range of incubation and acceleration facilities, some independent (including commercial and academic providers) and some hosted by established financial institutions; and

  4. relatively transparent efforts at developing a coherent regulatory framework involving most of the relevant regulatory authorities.

2. Do government bodies or regulators provide any support specific to financial innovation? If so, what are the key benefits of such support?

In 2016, the Intergovernmental FinTech Working Group (IFWG) was established (comprising members from the South African Reserve Bank, the National Treasury, the Financial Sector Conduct Authority, the Financial Intelligence Centre and the South African Revenue Service) with the purpose of developing a common understanding among regulators and policymakers of financial technology developments as well as policy

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