If you’ve been hearing murmurs about the COFI Bill and wondering what it actually means – you’re not alone.
For years, South Africa’s financial system has operated under a complex patchwork of laws and regulators. The Conduct of Financial Institutions (COFI) Bill aims to simplify that landscape – creating one consistent rulebook for how financial institutions should treat their customers and manage conduct risk.
It’s arguably the most significant reform in years and its goal is simple: to make financial services fairer, safer, and more accountable.
What COFI Actually Does:
In plain English, COFI establishes a single, principles-based framework that governs how financial institutions must conduct themselves – whether they’re banks, insurers, asset managers, brokers, or FinTechs.
COFI will replace and consolidate many of the existing conduct laws into one unified framework overseen by the Financial Sector Conduct Authority (FSCA).
This means a bank, insurer, and investment firm will all be measured by the same conduct standards – fairness, transparency, and integrity.
Why It Matters:
- Simpler, consistent regulation: One rulebook to govern how all financial institutions treat customers.
- Stronger consumer protection: Firms must show they act in clients’ best interests, not just comply on paper.
- Accountability at leadership level: Boards and executives will need to demonstrate how they embed ethical conduct.
- Transformation and inclusion: The Bill supports South Africa’s objectives for financial inclusion and empowerment.
- Future-proof regulation: The FSCA gains powers to regulate new entrants like FinTechs and digital platforms without rewriting laws each time.
Who It Affects:
Everyone from major banks and insurers to fintech start-ups, retirement fund administrators, and advisory firms.
If your organisation gives financial advice, manages money, or handles client funds, COFI will redefine how you’re licensed, supervised, and held accountable.
When Is It Coming?
As of October 2025, COFI is still in its final draft stage. It is expected to be certified and tabled in Parliament in the coming months, following public consultation by National Treasury and the FSCA.
Once enacted, implementation will roll out in phases – allowing institutions a multi-year transition to align their governance, policies, and culture with the new conduct framework.
The Bigger Picture:
COFI represents a broader shift in mindset, from tick-box compliance to outcomes-based conduct.
It’s about ensuring that financial institutions do more than follow the rules – they live them. After years of high-profile governance failures and eroding trust, the Bill signals a return to ethical leadership and transparent client relationships.
What It Means for Talent:
We’re already seeing new demand across our client base for:
- Conduct & Compliance Officers with FSCA or Treating Customers Fairly (TCF) experience.
- Legal Counsel able to interpret conduct standards and implement them across business lines.
- Governance specialists focused on culture, ethics, and transformation.
As COFI reshapes the financial sector, these roles will sit at the heart of every institution’s licence to operate.
COFI will also redefine how organisations recruit for these positions. Traditional hiring that focuses purely on technical compliance knowledge won’t be enough. Financial institutions will need people who can influence behaviour, embed ethical principles, and interpret “fair customer outcomes” within a commercial context. In other words, culture-builders – not just rule-followers.
Recruitment processes themselves will have to evolve too. Interview frameworks will need to assess values, judgement, and conduct orientation alongside technical capability. We expect to see greater emphasis on behavioural assessments, scenario-based evaluations, and cross-functional hiring between Legal, Risk, and HR teams to ensure alignment with the FSCA’s conduct expectations.
Closing Thought:
The COFI Bill isn’t just another piece of regulation – it’s a reset.
When it takes effect, every financial institution will need to prove not only that it’s profitable, but that it’s principled.
If COFI could impact your team structure or compliance resourcing, reach out – we’re already helping clients prepare.
📧 andrew@outsidecapital.co.za OutsideCapital – Our Business Is to Grow Yours
