Amendments & Bills Applicable amendments & bills.

Eswatini's Financial Services Regulatory Authority (FSRA) is actively engaged in a comprehensive legislative reform agenda aimed at modernising and strengthening the non-bank financial services sector. Recent amendments and pending bills address critical areas such as insurance, retirement funds, capital markets, and anti-money laundering/combating the financing of terrorism (AML/CFT). These reforms seek to enhance financial stability, improve consumer protection, align with international best practices, and foster a more efficient and inclusive financial system. Legal professionals operating within Eswatini's financial landscape must remain abreast of these developments to ensure compliance and advise clients effectively on the evolving regulatory environment.

The Kingdom of Eswatini's financial services sector, particularly the non-bank segment, is undergoing a significant transformation driven by an ambitious legislative reform agenda spearheaded by the Financial Services Regulatory Authority (FSRA). Established under the Financial Services Regulatory Authority Act, 2010, the FSRA is mandated to regulate and prudentially supervise non-bank financial services providers, ensuring the stability, safety, and soundness of the financial system, promoting fair competition, and protecting stakeholders.

In an increasingly interconnected global economy, and in response to evolving domestic market needs, Eswatini is proactively updating its legal framework. This article provides a comprehensive overview of the key amendments and bills recently enacted or currently under consideration, which are set to reshape the regulatory landscape for financial services providers in Eswatini. Understanding these legislative shifts is paramount for legal practitioners to navigate compliance requirements, identify emerging opportunities, and mitigate risks for their clients.

The ongoing reforms reflect a commitment to aligning Eswatini's financial sector with international standards, fostering greater market efficiency, and enhancing consumer confidence. From strengthening the FSRA's overarching authority to introducing new frameworks for micro-insurance and national pension schemes, these legislative developments demand close attention from all stakeholders in the financial services industry.

The regulatory architecture for non-bank financial services in Eswatini is primarily anchored by the Financial Services Regulatory Authority (FSRA) Act, 2010. This foundational legislation empowers the FSRA to oversee a diverse range of entities, including insurance firms, retirement funds, capital markets, building societies, and micro-finance institutions. Prior to the FSRA's establishment, supervision of these sectors was fragmented, with different bodies overseeing insurance, retirement funds, and capital markets.

Key sector-specific legislation under the FSRA's purview includes the Insurance Act, 2005, the Retirement Funds Act, 2005, the Securities Act, 2010, and the Consumer Credit Act, 2016. Additionally, the Money Laundering and Financing of Terrorism (Prevention) Act, 2011, as amended, forms a crucial part of the framework, addressing financial crime and aligning with international anti-money laundering and counter-terrorist financing (AML/CFT) standards. The continuous review and amendment of these Acts, alongside the introduction of new bills and regulations, underscore the FSRA's dynamic approach to maintaining a robust and responsive regulatory environment.

Recent legislative activity in Eswatini's financial sector demonstrates a concerted effort to enhance regulatory effectiveness and market integrity. A significant development is the Financial Services Regulatory Authority (Amendment) Act, 2020, which modernises the Principal Act by, among other things, replacing "Swaziland" with "Eswatini" and expanding the list of financial services laws specified in its First Schedule. Crucially, it clarifies that the FSRA Act, 2010, serves as the overarching law for all financial services legislation, thereby strengthening the Authority's regulatory and supervisory mandate.

In the insurance sector, the Insurance Amendment Bill, 2020 (or 2019) and the Insurance Regulations, 2020 (Draft), alongside the Reinsurance Bill, 2021, are pivotal. These instruments aim to align Eswatini's insurance law with international standards, particularly the Insurance Core Principles (ICPs). Key provisions include the regulation and supervision of micro-insurance services to enhance access for low-income earners, the introduction of risk-based capital requirements, and a framework for insurance group supervision. The Reinsurance Bill, 2021, specifically addresses the regulatory framework for reinsurance, a critical component of the insurance value chain.

The retirement funds sector has also seen substantial reform, notably with the Retirement Funds (Amendment) Bill, 2020, which seeks to modernise the Retirement Funds Act, 2005, and align it with international best practices and the FSRA Act, 2010. A transformative development is the Eswatini National Pension Fund Act, 2025 (Bill No. 13 of 2025), which provides for the conversion of the Eswatini National Provident Fund (ENPF) into a national pension fund. This strategic shift aims to provide predictable, lifelong retirement income, extend coverage to historically excluded segments of the workforce, and ensure sustainable retirement income, thereby closing critical gaps in the social security system.

For capital markets, The Securities (Amendment) Bill, 2020, is designed to amend the Securities Act, 2010, and provide for incidental matters. This includes strengthening the regulatory framework for capital markets and potentially establishing a Capital Markets Technical Committee to advise the FSRA on market development. These amendments are crucial for fostering an orderly, fair, and efficient capital market, which is closely tied to South Africa's markets.

Furthermore, the Consumer Credit (Amendment) Act, 2021, has been enacted to provide for enhanced consumer confidence and protection in consumer credit matters. In the realm of financial crime, the Money Laundering and Financing of Terrorism (Prevention) Act, 2011, has been subject to amendments, including the Money Laundering and Financing of Terrorism (Prevention) (Amendment) Act, 2016, and more recently, the AML/CFT/PF Miscellaneous Amendments Act, 2024. These amendments are critical for addressing deficiencies identified in mutual evaluations and ensuring Eswatini's compliance with the Financial Action Task Force (FATF) recommendations, thereby strengthening the country's ability to combat money laundering and terrorist financing.

The ongoing legislative reforms in Eswatini's financial services sector, driven by the FSRA, signify a robust commitment to fostering a stable, sound, and inclusive financial system. The amendments and bills discussed, spanning across insurance, retirement funds, capital markets, consumer credit, and AML/CFT, collectively aim to enhance regulatory oversight, protect consumers, and align the domestic framework with international best practices. These developments are not merely technical adjustments but represent a strategic evolution of Eswatini's financial landscape.

For practising attorneys and legal professionals, these legislative changes necessitate a proactive approach to understanding and interpreting the new requirements. Compliance departments will need to update internal policies and procedures, while legal advisors must be prepared to guide clients through the implications of revised licensing requirements, capital adequacy standards, market conduct rules, and enhanced anti-financial crime obligations. The transition to a national pension fund, the emphasis on micro-insurance, and the strengthening of capital markets regulation present both challenges and opportunities for financial services providers. Continuous monitoring of the FSRA's pronouncements, including regulations, directives, and public notices, will be essential to ensure ongoing compliance and strategic adaptation in Eswatini's dynamic regulatory environment.