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Types of Regulatory Services Law in South Africa

- Featured article by LAWYERS-ONLINE.CO.ZA - June 2019

Most statutes in South Africa appoint a regulator to oversee the implementation of said law while also ensuring compliance with the stipulations of the statute. They are also in charge of licencing and supervision for certain industries, such as the licence to trade. Therefore regulatory services are in place to bridge the gap between administrative agencies and the laws under which they function. Ultimately regulatory services operate under a branch of law known as administrative law, which governs the administrative actions of the government and the like. To name all regulatory services in South Africa would surely fill a book, so instead let’s take a look at a few examples below:

Environmental Regulatory Services

Here we find an example of regulatory services being provided under environment law in the form of the Environmental Management Inspectorate as established by section 7 of the National Environmental Management Act 107 of 1998. One may also find regulatory duties being performed by The Ministry of Water and Environmental Affairs and they have the authority to appoint more enforcement officials for the inspectorate.

Here regulation takes place in the form of granting permits or licencing to conduct environmental activities as well as the ability to place restrictions on said permits.

Financial Regulatory Services

The recently introduced Financial Sector Regulation Act 9 of 2017 sets up two regulatory bodies namely, Prudential Authority and the Financial Sector Conduct Authority. Together these two regulators serve the purpose of securing the safety of financial institutes in South Africa as well as regulating the conduct of financial services and businesses.

By establishing two regulatory services, the law is engaging in what is being called a “twin peaks” approach, which will promote more impartiality in the financial regulation sector. Although commencement dates on this new piece of legislation remain unclear as of writing this article, until such time, current governing legislation will act as the regulators for the financial sector in South Africa.

For more information on regulatory services and the law regarding it, please do not hesitate to contact us and we can put you in touch with a regulatory lawyer who will be able to shed more light on the matter.

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