FSCA: Draft Joint Standard requirements pertaining to beneficial owners

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FSCA: Draft Joint Standard requirements pertaining to beneficial owners

• 11 September 2026
• Accounting
• South African Accounting Academy

Summary:
The Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA) have published a draft Joint Standard on Beneficial Owners, which applies to financial institutions and their beneficial owners.

Article:

This Draft Joint Standard applies to financial institutions and the beneficial owners of financial institutions, and proposes fit and proper requirements for beneficial owners. It also requires financial institutions to implement governance processes to identify, verify, and maintain records of beneficial owners.

At a high level, the objectives of the draft Joint Standard are to: 

• subject beneficial owners to fit and proper (honesty and integrity) requirements; 
• ensure that financial institutions establish sound and robust governance policies, processes and procedures for managing risks with regards to beneficial owners; 
• ensure that financial institutions take reasonable steps to identify, verify and record their  beneficial owners; 
• ensure that financial institutions undertake regular reviews and provide assurance regarding the status of their beneficial owners;  
• ensure that financial institutions report beneficial owner information to the Authorities; 
• clarify the meaning of “ultimate ownership” and “effective control”; and 
• clarify which persons are excluded from the definition of “beneficial owner” as contemplated in section 159A(1) of the FSR Act. 

Comments are due by 25 September 2026.

Contents:

1. Legislative authority
2. Definitions  
3. Application  
4. Beneficial owner honesty and integrity requirements  
5. Beneficial owner requirements applicable to financial institutions  
6. Ultimate ownership and effective control 
7. Administration, short title and commencement 

Related documents: 

• Joint Notice 1 of 2026 - Notice of invitation for comments: Publication of the draft Joint Standard - Requirements pertaining to beneficial owners https://www.resbank.co.za/content/dam/sarb/publications/prudential-authority/pa-documents-issued-for-consultation/2026/joint-notice-1-of-2026/Joint%20Notice%201%20of%202026%20-%20Draft%20Joint%20Standard%20Requirements%20Pertaining%20to%20Beneficial%20Owners.pdf 
• Statement of Need and Impact - Joint Standard Requirements Pertaining to Beneficial Owners https://www.resbank.co.za/content/dam/sarb/publications/prudential-authority/pa-documents-issued-for-consultation/2026/joint-notice-1-of-2026/Statement%20of%20Need%20and%20Impact%20-%20Joint%20Standard%20Requirements%20Pertaining%20to%20Beneficial%20Owners.pdf 
• Comments Template - Draft Joint Standard Requirements Pertaining to Beneficial Owners https://www.resbank.co.za/content/dam/sarb/publications/prudential-authority/pa-documents-issued-for-consultation/2026/joint-notice-1-of-2026/Comments%20Template%20-%20Draft%20Joint%20Standard%20Requirements%20Pertaining%20to%20Beneficial%20Owners.docx 

Click here to download the 7-page Draft Joint Standard:

https://www.resbank.co.za/content/dam/sarb/publications/prudential-authority/pa-documents-issued-for-consultation/2026/joint-notice-1-of-2026/Draft%20Joint%20Standard%20-%20Requirements%20Pertaining%20to%20Beneficial%20Owners.pdf 

Relevance to Auditors, Independent Reviewers & Accountants:

• Auditors, Independent Reviewers and Accountants should be aware of the latest publications and guidance issued by regulators, such as the FIC – to enable their assessment of accountable institutions’ compliance with FICA.
• As a TCSP (which is an accountable institution), the firm also needs to comply with FICA, and the resulting Beneficial Ownership requirements.
• When advising clients or performing this function on their behalf, practitioners should be aware of the finer details and specific guidance on Beneficial Ownership.

Relevance to Your clients:

• Relevant companies and CCs (accountable institutions) should be aware of the latest publications and guidance issued by regulators, such as the FSCA, FIC, etc.

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