On 3 June 2013 the Financial Markets Act, No. 19 of 2012 (FM Act) came into force. With the aim of safeguarding the stability of and confidence in South Africa's financial markets, the FM Act now functions as the primary legislation governing the regulation of local financial markets, market infrastructure and securities services. The FM Act repealed the Security Services Act, No. 36 of 2004, as amended by the Financial Services Laws General Amendment Act, No. 22 of 2008, and aims to align the regulatory framework of South Africa's financial markets with international developments and financial regulatory standards. Express provision has been made to regulate over-the-counter derivatives, which is generally blamed for causing the 2008 financial crisis.

All registered long- and short-term insurers fall within the definition of a "financial institution" as defined in the FM Act and are, as such, required to comply with the relevant provisions of the FM Act.

According to the National Treasury, the rules and regulations under the FM Act are due to become fully operational following a transitional period to ensure that the market has adequate time to adapt to and comply with the provisions under the FM Act.