Standard for market infrastructure recovery plans published
The Financial Sector Conduct Authority and the Prudential Authority have published Joint Standard 1 of 2026, establishing minimum requirements for market infrastructures' recovery plans. This standard, effective in 12 months, aims to ensure critical services continue without requiring resolution powers.
Strengthening market resilience
The Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA) have published Joint Standard 1 of 2026, setting minimum requirements for market infrastructures (MIs) to develop comprehensive and effective recovery plans.
This aligns with international guidance from the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO).
The standard aims to ensure MIs can recover from threats while continuing critical services, avoiding the need for resolution powers.
It is supplemented by Joint Guidance Notice 1 of 2026, which guides MIs on selecting appropriate recovery tools.
The Authorities conducted a public consultation on the draft standard in June 2024, incorporating feedback from six industry stakeholders into the final version.
A year to prepare
The development of this Joint Standard began with a public consultation on 4 June 2024, where a draft was published alongside the Joint Guidance Notice.
Six industry stakeholders submitted comments, which the Authorities addressed in the accompanying Consultation Report.
The standard is legally established under the Financial Sector Regulation Act, 2017 (FSR Act), with the concurrence of the South African Reserve Bank.
Following the conclusion of formal consultation and parliamentary tabling, the standard is now officially published.
Market infrastructures will have a full year to prepare for its implementation, as the Joint Standard and Joint Guidance Notice will come into effect twelve months from the date of this publication.
Building resilience, step by step
This new standard represents a crucial step in enhancing the resilience of South Africa's financial market infrastructure.
By mandating robust recovery plans, it significantly reduces systemic risk and bolsters confidence in critical financial services.
The 12-month implementation period offers necessary flexibility, acknowledging the complexity of integrating these comprehensive requirements.