Body to rein in unbridled micro-lenders

The authority, which will be partly modelled on the Financial Services Board (FSB) of South Africa, will regulate monetary institutions other than banks, key among which are asset managers and micro lenders, which are not regulated by the central bank or treasury. Some of the other institutions the regulator will keep a check on are pension and provident fund administrators, custodians, investment advisors and security dealers.

A board has been appointed ahead of the chief executive. Analysts have already thrown their support behind the setting up of such an institution, saying it will go a long way into avoiding scandals like the Fidencia bulking scam that rocked South African financial services markets and rein in micro-lenders who currently levy up to 30 percent in interest.