Various factors can impact the effective functioning of the financial system and render it vulnerable to instability and manipulation, which could affect investor confidence and make it easy for unscrupulous or criminal activities to thrive. A robust regulatory system is, therefore, essential for economic stability and growth, and to ensure the resilience of the financial system, when faced with crises. Regulation, other than fulfilling a control function, also has a role to play in facilitation of opportunities, activities, integration and coordination across the sector.
It is against this background that the Faculty of Law at Stellenbosch University (SU) is pleased to announce a significant donation to establish the Gys Steyn Chair in Financial Regulation Law – the first of its kind in South Africa.
Steyn is a former chair of the SU Council and managing director of the wine and liquor divisions of Remgro, who studied in the Faculty and graduated with a LLB degree in 1956.
“We are hugely indebted to Mr Gys Steyn for his donation of R25 million via a family trust to the Law Faculty Trust towards the establishment of the Chair in Financial Regulation Law,” says Prof Wim de Villiers, Rector and Vice-Chancellor. “The donation to establish the Chair assists Stellenbosch University in its vision to be the leading research-intensive university in Africa. Our institution’s number of research chairs has increased significantly in the past decade, expanding our research capacity. With this significant contribution from Mr Steyn, the Faculty of Law will be able to deepen its understanding of the complex nature of financial regulatory systems, especially in times of economic turmoil.”
Background
“With this new initiative, we aim to contribute constructively towards strengthening the financial sector and its regulation in South Africa,” says Prof Nicola Smit, Dean of the Faculty of Law.
The SU Law Faculty Trust and alumni of the Faculty of Law fulfil an important role in advancing excellence in the Faculty, as evidenced by this new chair, which follows their previous involvement and sponsorship of the Chair in Social Justice and the Chair in Urban Law and Sustainability Governance.
Mr Chris Otto, Chair of the SU Law Faculty Trust,* commented that “an efficient financial system is crucial to ensure stable and sustainable economic growth, and, as such, financial institutions and structures operating within the financial system need to be regulated to ensure that they are well governed and managed. The South African financial system is always exposed to risks, which may stem from a range of sources, both locally and globally. It is also an open and connected financial system, where the difficulties or failures within one institution can have significant consequences on the entire system. Prudent management of the financial system via the proper regulatory instruments are, thus, essential.”
Faculty of Law
“The SU Faculty of Law has a long and proud tradition of excellence in producing legal practitioners, jurists and thought leaders who are committed to maintaining and strengthening democracy —and society— in South Africa and the world,” says Smit. Furthermore, “As we celebrate more than 100 years of legal education, we continue to strive to be a leader in legal education and research, whilst making a positive impact on society through engagement in our fields of expertise.”
Smit further says that “We, thus, believe that we are ideally placed to make a valuable contribution towards scholarship — and by extension, the practical implementation of financial regulation measures, both within South Africa and internationally — through the establishment of the research chair.”
The activities of the Chair will support, strengthen and improve scholarship in the field of financial regulation to produce high-quality research outputs and postgraduate students.
Focus areas
“The Chair will focus on the theory, purpose and principles of regulation in general, and specifically financial regulation law,” Smit explains. “This will incorporate aspects such as the economics of the financial sector, models of regulation, regulation of different risks in the financial sector, and regional and international financial regulation law.”
A significant challenge is the vast scope of the field of financial regulation, given its many inter-related aspects and fields. It is nearly impossible for one person to have comprehensive expertise, and to be considered the leading authority across the entire spread of the inter-related fields. However, the Faculty’s vision is that with a Chair in Financial Regulation Law, a senior expert can create a hub around which more focused expertise (both academic and professional) may be co-opted in the various areas of financial regulation.
Smit adds that the Chair will also investigate the nature and regulation of technology used in financial markets (so-called “fintech”) to promote the efficient and effective use of these technologies, and how these technologies disrupt traditional financial services and their regulation. Topics such as the regulation of digital financial products and digital money (including cryptocurrencies), the prevention of the abuse of the financial system, comparative aspects of financial regulation across jurisdictions, and the international context of financial regulation from a South African perspective will also fall within the ambit of the Chair.
The Faculty is about to start the recruitment process and a formal launch of the new Chair will take place in due course.
*The Law Faculty Trust, created in 2013, supports several projects in the SU Faculty of Law, including but not limited to bursaries for postgraduate students that enrol for LLM (research) and LLD degrees. The Trust also provides support to academic staff, including funding for study opportunities, (international and national) research initiatives, such as conference presentations and hosting of research seminars. A further important project is the recruitment and retaining of academic staff, with the establishment of the Chair in Social Justice (2018) with Prof Thuli Madonsela as first incumbent an example.
Author: Corporate Communication and Marketing
(Afrikaans volg)
Verskeie faktore kan die doeltreffende funksionering van die finansiële stelsel beïnvloed en dit kwesbaar laat vir onstabiliteit en manipulasie. Dít kan weer beleggersvertroue beïnvloed en gewetenlose of kriminele aktiwiteite laat gedy. Daarom is ʼn gesonde beheerstelsel noodsaaklik vir ekonomiese stabiliteit en groei en om die veerkragtigheid van die finansiële stelsel in krisistye te verseker. Afgesien van die beheerfunksie, speel regulering ook ‘n rol in die fasilitering van geleenthede, aktiwiteite, integrasie en koördinering regoor die sektor.
Dit is teen hierdie agtergrond dat die Fakulteit Regsgeleerdheid aan die Universiteit Stellenbosch (US) verheug is om te kan aankondig dat ‘n beduidende skenking die vestiging van die Gys Steyn-leerstoel in Finansiële Reguleringsreg – die eerste van sy soort in Suid-Afrika – moontlik gemaak het.
Steyn is ‘n voormalige voorsitter van die US Raad en besturende direkteur van Remgro se wyn en drankfiliale. Hy het in 1956 sy LLB-graad aan die US verwerf.
“Ons is baie dank aan mnr Gys Steyn verskuldig vir sy skenking van R25 miljoen via n familietrust aan die Regsfakulteitstrust om die leerstoel in Finansiële Reguleringsreg te kan vestig,” sê prof Wim de Villiers, Rektor en Visekanselier. “Dit ondersteun die Universiteit Stellenbosch in sy visie om die voorste navorsingsintensiewe universiteit in Afrika te word. Ons instelling se aantal navorsingsleerstoele het die afgelope dekade aansienlik toegeneem om ons navorsingskapasiteit uit te brei. Hierdie beduidende bydrae van mnr Steyn stel die Fakulteit Regsgeleerdheid in staat om sy begrip van die komplekse aard van finansiële regulerende stelsels veral in tye van ekonomiese onstuimigheid uit te brei.”
Agtergrond
“Ons wil deur hierdie inisiatief ‘n konstruktiewe bydrae tot die versterking van die finansiële sektor en die regulering daarvan in Suid-Afrika lewer,” sê prof Nicola Smit, Dekaan van die Fakulteit Regsgeleerdheid.
Die US Regsfakulteitstrust* en alumni van die Fakulteit Regsgeleerdheid speel ‘n belangrike rol om uitnemendheid in die Fakulteit te bevorder, soos blyk uit hierdie nuwe leerstoel wat kort op die hakke van hulle betrokkenheid by en borgskap van die leerstoele in Sosiale Geregtigheid en Stedelike Reg en Volhoubaarheidsregeerkunde volg.
Mnr Chris Otto, voorsitter van die US se Regsfakulteitstrust, sê ‘n “doeltreffende finansiële stelsel is van die uiterste belang om stabiele en volhoubare ekonomiese groei te verseker en as sodanig moet finansiële instellings en strukture wat binne die finansiële stelsel werk, gereguleer word om te verseker dat dit goed bestuur word. Die Suid-Afrikaanse finansiële stelsel word voortdurend aan risiko’s blootgestel wat uit ‘n verskeidenheid plaaslike en internasionale bronne kan voortspruit. Boonop is dit ‘n oop en gekoppelde finansiële stelsel, waar probleme of mislukkings binne een instelling verreikende gevolge vir die hele stelsel kan hê. Daarom is omsigtige finansiële bestuur met behulp van behoorlike regulerende instrumente noodsaaklik.”
Fakulteit Regsgeleerdheid
“Die US se Fakulteit Regsgeleerdheid het ‘n lang en trotse tradisie van uitnemendheid in die opleiding van regspraktisyns, regsgeleerdes en denkleiers wat daartoe verbind is om demokrasie en die samelewing in Suid-Afrika en die res van die wêreld te handhaaf en te versterk”, sê Smit. Voorts, “Terwyl ons 101 jaar van regsopleiding vier, strewe ons deurgaans daarna om ‘n leier op die gebied van regsopleiding en -navorsing te wees terwyl ons die samelewing aan die hand van ons deelname aan ons vakgebiede positief beïnvloed.”
Smit vervolg dat “Ons glo dus ons is ideaal geposisioneer om deur die vestiging van ‘n navorsingsleerstoel ‘n waardevolle bydrae tot vakkundigheid – en daardeur tot die praktiese inwerkingstelling van finansiële reguleringsmaatreëls – in Suid-Afrika en die res van die wêreld te kan lewer.”
Die aktiwiteite van die leerstoel sal vakkundigheid op die gebied van finansiële regulering ondersteun, versterk en verbeter ten einde navorsingsuitsette en nagraadse studente van ‘n hoë gehalte te lewer.
Fokusgebiede
Die leerstoel sal op die teorie, doel en beginsels van regulering in algemene en spesifiek finansiële reguleringsreg fokus, verduidelik Smit: “Dit sal onder meer aspekte soos die ekonomie van die finansiële sektor, reguleringsmodelle, regulering van verskillende risiko’s in die finansiële sektor asook streeks- en internasionale finansiële reguleringsreg insluit.
Een van die vernaamste uitdagings is die reuse-omvang van die gebied van finansiële regulering, aangesien dit verskeie interverwante gebiede het. Dit is byna onmoontlik dat een mens oor al die kundigheid kan beskik en as die voorste gesag op die volle spektrum van interverwante vakgebiede beskou kan word. Die Fakulteit se visie is egter dat ‘n leerstoel in Finansiële Reguleringsreg dit vir ‘n senior deskundige moontlik sal maak om ‘n naaf te skep vanwaar meer gefokusde kundiges (akademies en professioneel) op die verskillende gebiede van finansiële regulering gekoöpteer kan word.
Volgens Smit sal die leerstoel ook die aard en regulering van tegnologie wat in finansiële markte gebruik word (die sogenaamde “fintech”) ondersoek ten einde die doelmatige en doeltreffende gebruik van hierdie tegnologieë deur regulering te bevorder en om vas te stel hoe hierdie tegnologieë tradisionele finansiële dienste en die regulering daarvan ontwrig.
Aldus Smit sal onderwerpe soos die regulering van digitale finansiële produkte en digitale geld (ingesluit kriptoegeldeenhede), die voorkoming van die misbruik van die finansiële stelsel, vergelykende aspekte van finansiële regulering regoor jurisdiksies en die internasionale konteks van finansiële regulering vanuit ‘n Suid-Afrikaanse perspektief ook binne die sfeer van die leerstoel val.
Die Fakulteit sal nou met die werwingsproses begin en die nuwe leerstoel sal ter gelegenertyd formeel bekendgestel word.
* Die Regsfakulteitstrust, wat in 2013 in die lewe geroep is, ondersteun verskeie projekte wat die volgende insluit maar nie daartoe beperk is nie: beurse vir nagraadse studente wat vir LLM- (navorsing) en LLD-grade inskryf. Die Trust ondersteun ook akademiese personeel, insluitende finansiering vir studiegeleenthede (internasionaal en nasionaal), navorsingsinisiatiewe soos konferensie-aanbiedings en die aanbied van navorsingseminare. ‘n Verdere belangrike projek is die werwing en behoud van akademiese personeel, waarvan die instelling van die Leerstoel in Sosiale Geregtigheid (2018) met prof Thuli Madonsela as eerste posbekleër ‘n voorbeeld is.