Markets do tend to self-correct. In response to the serious financial losses incurred by investors, the market for subprime mortgages has adjusted sharply. Investors are demanding that originators employ tighter underwriting standards, and some large lenders are pulling back from the use of brokers.
The soon-to-be-created FSCA, which will replace the current Financial Services Board (FSB), will be given the task of being an integrated market conduct regulator in the financial sector, with the following statutory objectives: •  Promote the fair treatment of financial customers. •  Enhance and support the integrity and efficiency of the financial system. •  Develop financial literacy and capability.