The Democratic Alliance (DA) and the Economic Freedom Fighters (EFF) have opposed the Twin Peaks Bill, officially known as the Financial Sector Regulation Bill, while the Inkatha Freedom Party (IFP) has accepted it, albeit with reservations.
Opposition parties are concerned that the National Credit Regulator (NCR) is not included in the amended version of the Bill, which may leave consumers vulnerable to unprincipled lending practices.
Thandi Tobias, ANC MP and a member of the standing committee on finance, said in a declaration that the Bill underwent welcome changes when it was presented to the National Council of Provinces (NCOP). "The Bill is now closely aligned with the Financial Intelligence Centre (FIC) legislation," he said.
Alf Lees, DA spokesperson on finance, said in his declaration that although it is positive that the Bill now deals with the constitutional concerns of warrantless searches, it is still flawed. He said:
"The exclusion of the NCR means there will be a third body that runs parallel to this (the financial regulation of the Twin Peaks model), which means there's a weak conduct authority for millions of South Africans who buy on credit."
Lees was furthermore concerned about the cost of implementing the new legislation, which he says will be passed on to consumers, leading to job losses in the financial sector in the midst of a recession.
Pictured: Julius Malema, leader of the EFF
