SPECIAL PURPOSE INSTITUTIONS: INPUT SOUGHT ON DRAFT DIRECTIVE

SPECIAL PURPOSE INSTITUTIONS: INPUT SOUGHT ON DRAFT DIRECTIVE

• 25 March 2026
• Financial Sector
• SA Legal Academy

The Prudential Authority has called for input by 13 April 2026 on a draft directive under the 1990 Banks Act affecting issuer special purpose institutions and the annual auditing process.

In the context of reporting obligations prescribed in Directive 1 of 2012, the additional requirements now being proposed are intended to ‘enhance’ the Authority’s capacity for monitoring risks arising from securitisation schemes. This is noting:

• that the Authority’s approval of a securitisation structure (including the establishment of an issuer special purpose institution) is conditional upon compliance with all related updated directives, and
• the extent to which the assessment and monitoring of credit and liquidity risks in banks and issuer special purpose institutions has evolved over time.

Once finalised, the proposed new directive will replace Directive 4 of 2017, which was published in September 2017.

• draft directive
• Directive 4 of 2017 (to be replaced)
• Directive 1 of 2012

Published by SA Legal Academy Policy Watch

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