South African Cabinet Approves COFI Bill Submission

The South African Cabinet approved the submission of the Conduct of Financial Institutions Bill (COFI Bill) to Parliament on March 25, 2026. This action marks a significant milestone in a regulatory reform process that has been underway for more than a decade.

The COFI Bill introduces a fundamental shift in how pension funds are regulated and supervised within South Africa. The new framework places a stronger emphasis on accountability, governance, and the protection of members.

Scope and Objectives of the COFI Bill

The bill proposes a single, comprehensive framework designed to regulate the market conduct of all financial institutions in South Africa. This regulatory scope includes retirement funds, insurers, and banks.

The central objective of the legislation is to ensure that financial institutions are held accountable for their conduct throughout the entire lifecycle of a product. According to the framework, institutions must operate transparently and treat their customers fairly.

The COFI Bill proposes a single, comprehensive framework for regulating the market conduct of all financial institutions in South Africa, including banks, insurers and retirement funds. Its central aim is to ensure that financial institutions treat customers fairly, operate transparently and are held accountable for their conduct throughout the product lifecycle.

Cliff Dekker Hofmeyr

The COFI Bill serves as a cornerstone of the “Twin Peaks” model of financial regulation currently being implemented in South Africa.

Implications for Pension Funds

For the retirement fund industry, the bill signals a change in supervisory priorities. The shift toward a more rigorous focus on governance and member protection will directly affect several key stakeholders, including:

• Retirement fund trustees
• Fund administrators
• Employers
• Fund members

The transition to this new regulatory environment requires these parties to align their operations with the core principles of the COFI Bill, which are centered on transparency, fairness, and accountability.

Preparation and Compliance

Because the bill represents a significant change in oversight, employers, administrators, and trustees are advised to begin familiarizing themselves with the new principles. This preparation involves assessing how the COFI Bill’s mandates will impact existing operational practices.

Specifically, stakeholders will need to evaluate and potentially adjust their compliance frameworks and governance arrangements to meet the new standards of accountability and fairness required by the legislation.