The fact that the leading global regulators have not reached sufficient agreement to issue joint regulations is causing divergences and market fragmentation between them. It is also having a big impact on efficiency and financial stability and is increasing the business costs for both the providers and the users of financial services. South Africa is suffering direct and indirect consequences from this situation.
More impetus and direction to address the current situation of fragmentation and arbitrage and push for a higher level of coordination is required. In the past, we have stressed the importance of national discretion and flexibility and we should continue in this vein. However, the scope, substance and spirit of the global regulatory objective should still be met and demonstrated at all times. 6.