PRESENTATION BY THE FINANCIAL SERVICES BOARD TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON FINANCE ON THE FSB ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED ON 31 MARCH 2007

THE FSB TEAM ROB BARROW NOSIPHO MOLOPE DUBE TSHIDI JURGEN BOYD EXECUTIVE OFFICER NOSIPHO MOLOPE CHIEF FINANCIAL OFFICER DUBE TSHIDI DEPUTY EXECUTIVE OFFICER INVESTMENT INSTITUTIONS JURGEN BOYD RETIREMENT FUNDS

SIGNIFICANT REGULATORY ISSUES Secret profits made by Pension Fund Administrators Curatorship of Fidentia / Common Cents / Ovation Curatorships of a number of Pension Funds for abuse of surpluses through the application of the “Ghavalas option” Apportionment of pension fund surpluses in terms of the Pension Funds Second Amendment Act

SIGNIFICANT REGULATORY ISSUES Implementation of the Financial Advisory and Intermediary Services Act Insurance industry issues arising from the Pension Funds Adjudicator rulings / Statement of Intent signed by the Minister of Finance and the “Contractual Savings Industry” discussion document. The listing of the JSE Limited following on demutualisation

STRATEGIC OBJECTIVES Set out on pages 112 to 115 of the report Objectives are long term in nature Strategic plan revised in the current period Achievement of objectives managed through departmental business plans prepared annually and reported on quarterly Independent stakeholder opinion survey: 74% positive on relevance of delivery standards 71% positive on professional conduct 72% positive on FSB fulfilling its mandate

STRATEGIC CHALLENGES FOR THE FUTURE Management / employee skills development Continue to ensure that the regulatory framework remains relevant Continue to enhance supervisory enforcement structures Consumer Education Continue to promote transformation