South Africa's top conduct regulator is tapping the brakes on new AI rules so it can align with the global standard setter. "It's good for us to be waiting for that because we want to be aligned," said Unathi Kamlana, commissioner of the Financial Sector Conduct Authority, in a Friday interview.
The Financial Stability Board, headquartered in Basel, is developing principles to help firms handle AI responsibly in a fast changing environment. Its final report is expected next month and is categorized as a deliverable for the Group of 20 under the forum's 2026 US presidency.
Findings from that work will inform rules that guide the South African Reserve Bank, the Prudential Authority and the FSCA as they craft a joint discussion paper. The document will lay out particular considerations around agentic AI and help lay the groundwork for the industry's future regulatory framework. The FSCA and the Prudential Authority have already published an initial paper that scanned AI adoption and leading use cases in the financial sector, and regulators plan a follow up outlining how governance principles will be built into financial institutions' use of AI.
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Kamlana said the regulators will stick with a principles based approach rather than hard rules, given how quickly AI is evolving. "We are going to stay the course on AI and the risk it presents to the financial sector, but we have been clear and consistent on the approach, which is principles rather than rules, because it is a fast evolving area," he said. Around the world, authorities are also racing to put in place binding rules and frameworks as AI accelerates. For your wallet, the takeaway is simple: clearer guardrails on AI in finance could change how your bank or insurer deploys algorithms, how products are vetted and monitored, and how risks are managed behind the scenes.
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