Appraisal of South Africa’s legislative adoption of the twin-peaks system in light of international experiences

Abstract

The 2007-2008 global financial crisis demonstrated the weakness of a light-touch financial regulatory system. The global financial crisis thus formed the basis for countries to reconsider a model of financial regulation that functions as a preventative measure and was able to protect the financial sector in the wake of a financial crisis. This saw an international trend in financial regulation, with many countries such as Australia, the United Kingdom, Netherlands, Belgium, New Zealand, inter alia, adopting the Twin Peaks model of financial regulation. The impact felt in South Africa (SA) saw the loss of millions of jobs owing to the global financial crisis.