Launching 2026

About COFI

Prepare your business for South Africa's new Conduct of Financial Institutions Act. Comprehensive compliance tools and assessment systems designed for FSPs.

2026

Expected Promulgation

150+

Requirements

Focus Areas

Time-Sensitive Compliance

COFI implementation deadlines are approaching. Start your compliance assessment today to ensure your business is fully prepared.

Coming to you on 3rd March 2026

Comprehensive Compliance Solutions

Professional-grade tools for COFI readiness, business assessment, and strategic planning. Competitive pricing designed for South African FSPs.

Understanding COFI

The Conduct of Financial Institutions Act represents South Africa's most significant regulatory shift for financial service providers since FAIS.

COFI introduces comprehensive conduct standards that apply to all financial institutions operating in South Africa. The Act shifts regulatory focus from compliance documentation to demonstrable customer outcomes and fair treatment throughout the client lifecycle.

For FSPs, this means enhanced accountability, stricter documentation requirements, and the need for robust conduct risk management frameworks. The Act empowers the FSCA with expanded supervisory powers and establishes significant penalties for non-compliance.

Success under COFI requires systematic preparation, ongoing monitoring, and a fundamental commitment to treating customers fairly in every aspect of your business.

Core Principles

Customer-centric decision making
Transparency in all communications
Fairness and equitable treatment
Professional accountability
Competency and expertise
Suitability of recommendations

Impact on Your Practice

COFI will affect every aspect of how you operate as a financial service provider.

Accountability

Personal accountability for key individuals and senior management.

Conflict Management

Robust systems to identify, manage, and disclose conflicts of interest effectively.

Competency Standards

Stricter professional requirements including ongoing training and demonstrated expertise.

Product Oversight

Regular reviews to ensure suitability and monitor product performance.

Enhanced Documentation

Comprehensive record-keeping for all client interactions, advice processes, and business decisions.

Client Communication

Clear, plain language requirements with enhanced disclosure obligations.

Implementation Timeline

Key anticipated milestones in the COFI implementation process. Please note that the dates below reflect our current understanding and are not yet confirmed facts.

Q2 / Q3 2026

Promulgation

We believe the COFI Act will be promulgated in either April or July 2026, officially coming into law and signalling the start of the compliance journey for all financial institutions.

2026 – 2028 / 2029

Transitional Period

We anticipate a transitional period of 2 to 3 years during which financial institutions will be expected to align their systems, policies, procedures, and governance structures with COFI requirements. The FSCA is expected to provide guidance and conduct industry consultations throughout this period.

2028 / 2029

Full Implementation

We believe full COFI compliance will be required by 2028 or 2029. All FSPs will be expected to demonstrate complete compliance. The FSCA is expected to begin active supervision and enforcement.

2029 onwards

Ongoing Compliance

Regular inspections, thematic reviews, and enforcement actions by the FSCA. FSPs will be required to continuously maintain and demonstrate compliance as standards evolve over time.

Start Your COFI Assessment

Take our comprehensive assessment to identify gaps and create your roadmap to full compliance.

Frequently Asked Questions

When does COFI take effect?

We believe the COFI Act is expected to be promulgated on 1 April or 1 July 2026, with a transitional period of approximately 2 to 3 years for financial institutions to achieve full compliance. Please note this reflects our current understanding and is not yet confirmed.

How is COFI different from FAIS?

COFI differs fundamentally from FAIS in its scope and philosophy. FAIS is a rules-based framework focused mainly on regulating financial service providers, while COFI is a broader, principles-based, outcomes-based law that applies to all financial institutions and emphasises fair customer outcomes across the entire sector.

Will I need to renew my license?

Yes. Under COFI, you will be required to re-apply in order to obtain your licence as a financial institution.

What are the penalties for non-compliance?

The COFI Bill contains both administrative penalties and criminal offences for non-compliance. Given the range and variety of potential penalties and offences, FSPs are strongly encouraged to take compliance seriously and seek appropriate professional guidance.

How can FSP Business 4.0 help?

We provide comprehensive COFI readiness assessments, compliance toolkits, policy templates, training programs, and ongoing monitoring systems to help you achieve and maintain compliance efficiently.