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.<\/p>\n
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 \u2013 the first of its kind in South Africa.<\/p>\n
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.<\/p>\n
\u201cWe 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. \u201cThe 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.\u00a0 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.”<\/p>\n
Background<\/strong><\/p>\n \u201cWith 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.<\/p>\n 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.<\/p>\n Mr Chris Otto, Chair of the\u00a0SU Law Faculty Trust<\/a>,* commented that \u201can 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.”<\/p>\n Faculty of Law<\/strong><\/p>\n \u201cThe 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 \u2014and society\u2014 in South Africa and the world,” says Smit. Furthermore, \u201cAs 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.”<\/p>\n Smit further says that \u201cWe, thus, believe that we are ideally placed to make a valuable contribution towards scholarship \u2014 and by extension, the practical implementation of financial regulation measures, both within South Africa and internationally \u2014 through the establishment of the research chair.”<\/p>\n 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.<\/p>\n Focus areas<\/strong><\/p>\n \u201cThe Chair will focus on the theory, purpose and principles of regulation in general, and specifically financial regulation law,” Smit explains. \u201cThis 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.”<\/p>\n 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.<\/p>\n Smit adds that the Chair will also investigate the nature and regulation of technology used in financial markets (so-called \u201cfintech”) 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.<\/p>\n The Faculty is about to start the recruitment process and a formal launch of the new Chair will take place in due course.<\/p>\n <\/p>\n *The\u00a0Law 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.\u00a0<\/em><\/p>\n Author: Corporate Communication and Marketing<\/a><\/em><\/strong><\/p>\n \u00a0<\/em><\/strong><\/p>\n (Afrikaans volg)<\/strong><\/p>\n <\/p>\n Verskeie faktore kan die doeltreffende funksionering van die finansi\u00eble stelsel be\u00efnvloed en dit kwesbaar laat vir onstabiliteit en manipulasie. D\u00edt kan weer beleggersvertroue be\u00efnvloed en gewetenlose of kriminele aktiwiteite laat gedy. Daarom is \u0149 gesonde beheerstelsel noodsaaklik vir ekonomiese stabiliteit en groei en om die veerkragtigheid van die finansi\u00eble stelsel in krisistye te verseker. Afgesien van die beheerfunksie, speel regulering ook ‘n rol in die fasilitering van geleenthede, aktiwiteite, integrasie en ko\u00f6rdinering regoor die sektor.<\/em><\/p>\n 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 Finansi\u00eble Reguleringsreg \u2013 die eerste van sy soort in Suid-Afrika \u2013 moontlik gemaak het.<\/em><\/p>\n 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.<\/em><\/p>\n \u201cOns is baie dank aan mnr Gys Steyn verskuldig vir sy skenking van R25 miljoen via n familietrust aan die Regsfakulteitstrust om die leerstoel in Finansi\u00eble Reguleringsreg te kan vestig,” s\u00ea prof Wim de Villiers, Rektor en Visekanselier. \u201cDit 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 finansi\u00eble regulerende stelsels veral in tye van ekonomiese onstuimigheid uit te brei.”<\/em><\/p>\n Agtergrond<\/em><\/strong><\/p>\n \u201cOns wil deur hierdie inisiatief ‘n konstruktiewe bydrae tot die versterking van die finansi\u00eble sektor en die regulering daarvan in Suid-Afrika lewer,” s\u00ea prof Nicola Smit, Dekaan van die Fakulteit Regsgeleerdheid.<\/em><\/p>\n Die US\u00a0Regsfakulteitstrust<\/a>* 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.<\/em><\/p>\n Mnr Chris Otto, voorsitter van die US se Regsfakulteitstrust, s\u00ea ‘n \u201cdoeltreffende finansi\u00eble stelsel is van die uiterste belang om stabiele en volhoubare ekonomiese groei te verseker en as sodanig moet finansi\u00eble instellings en strukture wat binne die finansi\u00eble stelsel werk, gereguleer word om te verseker dat dit goed bestuur word. Die Suid-Afrikaanse finansi\u00eble stelsel word voortdurend aan risiko’s blootgestel wat uit ‘n verskeidenheid plaaslike en internasionale bronne kan voortspruit. Boonop is dit ‘n oop en gekoppelde finansi\u00eble stelsel, waar probleme of mislukkings binne een instelling verreikende gevolge vir die hele stelsel kan h\u00ea. Daarom is omsigtige finansi\u00eble bestuur met behulp van behoorlike regulerende instrumente noodsaaklik.”<\/em><\/p>\n Fakulteit Regsgeleerdheid<\/em><\/strong><\/p>\n \u201cDie 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 w\u00eareld te handhaaf en te versterk”, s\u00ea Smit. Voorts, \u201cTerwyl 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 be\u00efnvloed.”<\/em><\/p>\n \u00a0Smit vervolg dat \u201cOns glo dus ons is ideaal geposisioneer om deur die vestiging van ‘n navorsingsleerstoel ‘n waardevolle bydrae tot vakkundigheid \u2013 en daardeur tot die praktiese inwerkingstelling van finansi\u00eble reguleringsmaatre\u00ebls \u2013 in Suid-Afrika en die res van die w\u00eareld te kan lewer.”<\/em><\/p>\n Die aktiwiteite van die leerstoel sal vakkundigheid op die gebied van finansi\u00eble regulering ondersteun, versterk en verbeter ten einde navorsingsuitsette en nagraadse studente van ‘n ho\u00eb gehalte te lewer.<\/em><\/p>\n Fokusgebiede<\/em><\/strong><\/p>\n Die leerstoel sal op die teorie, doel en beginsels van regulering in algemene en spesifiek finansi\u00eble reguleringsreg fokus, verduidelik Smit: \u201cDit sal onder meer aspekte soos die ekonomie van die finansi\u00eble sektor, reguleringsmodelle, regulering van verskillende risiko’s in die finansi\u00eble sektor asook streeks- en internasionale finansi\u00eble reguleringsreg insluit.<\/em><\/p>\n Een van die vernaamste uitdagings is die reuse-omvang van die gebied van finansi\u00eble 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 Finansi\u00eble 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 finansi\u00eble regulering geko\u00f6pteer kan word.<\/em><\/p>\n Volgens Smit sal die leerstoel ook die aard en regulering van tegnologie wat in finansi\u00eble markte gebruik word (die sogenaamde \u201cfintech”) ondersoek ten einde die doelmatige en doeltreffende gebruik van hierdie tegnologie\u00eb deur regulering te bevorder en om vas te stel hoe hierdie tegnologie\u00eb tradisionele finansi\u00eble dienste en die regulering daarvan ontwrig.<\/em><\/p>\n Aldus Smit sal onderwerpe soos die regulering van digitale finansi\u00eble produkte en digitale geld (ingesluit kriptoegeldeenhede), die voorkoming van die misbruik van die finansi\u00eble stelsel, vergelykende aspekte van finansi\u00eble regulering regoor jurisdiksies en die internasionale konteks van finansi\u00eble regulering vanuit ‘n Suid-Afrikaanse perspektief ook binne die sfeer van die leerstoel val.<\/em><\/p>\n Die Fakulteit sal nou met die werwingsproses begin en die nuwe leerstoel sal ter gelegenertyd formeel bekendgestel word.<\/em><\/p>\n