A new Public Service Commission Act expands the accountability landscape. Financial institutions have been hit with R35.6 million in FIC Act penalties. King V is putting governance effectiveness - not simply compliance - under the microscope.
Here is what moved, why it matters and what should be on your agenda.
GOVERNANCE IN 60 SECONDS
The Public Service Commission Act has been signed into law, extending oversight to municipalities, state-owned companies and public entities. Public Service Commission Act signed into law and expanded to local government and public entities.
The Prudential Authority imposed R35.6 million in administrative penalties on Capitec Bank, Ninety One Assurance and Albaraka Bank for FIC Act compliance failures. The Prudential Authority announced R35.6 million in FIC Act penalties on 11 September 2026.
CIPC remuneration governance guidance remains relevant to public and state-owned companies convening affected AGMs.
King V implementation is now exposing gaps between compliance and actual governance effectiveness. Legal 500 analysis says King V requires measurable evidence that governance practices work.
The Gauteng High Court ordered the reinstatement of seven NSFAS board members following procedural flaws in their dismissal. The NSFAS board statement confirms interim relief reinstating the board and suspending the administrator appointment.
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GRC BY THE NUMBERS
GRC By the Numbers
R35.6m
FIC Act administrative penalties announced against three financial institutions.
8,000+
Security-compromise notifications received by the Information Regulator since its establishment.
78%
of executives surveyed by Grant Thornton lacked strong confidence that their organisations could pass an independent AI governance audit within 90 days.
GOVERNANCE RADAR
Development | Key Update | Status |
|---|---|---|
Public Service Commission Act enacted | President Cyril Ramaphosa signed the Public Service Commission Bill into law on 16 September 2026, extending the Commission's oversight mandate to municipalities, state-owned companies and public entities, with implementation reporting powers and penalties for obstruction. The Presidency confirmed the Act and its expanded mandate, reporting powers and obstruction penalties. | Phased rollout is expected as the expanded mandate is implemented. The Rio Times reported a phased rollout for the expanded mandate. |
Prudential Authority FIC Act Enforcement | The Prudential Authority imposed administrative sanctions totalling R35.6 million on Capitec Bank, Ninety One Assurance and Albaraka Bank for failures under the Financial Intelligence Centre Act, including customer due diligence, enhanced due diligence, employee training and governance controls. Moonstone reported the total sanctions and affected institutions. | Sanctions were published on 11 September 2026; financial institutions should review AML/CFT and governance frameworks. The SARB media release sets out the Prudential Authority’s sanctions against Capitec. |
References: The Presidency (2026) President Ramaphosa signs Public Service Commission Bill into law, The Rio Times (2026) Public Service Commission Act becomes law in South Africa, Moonstone (2026) FICA penalties for three financial institutions total R35.6m, South African Reserve Bank (2026) Prudential Authority imposes administrative sanctions on Capitec Bank Limited
Public Service Commission: Expanded Oversight, Binding Powers
THE GOVERNANCE LENS
Public Service Commission: Expanded Oversight With Binding Powers
President Cyril Ramaphosa signed the Public Service Commission Bill into law on 16 September 2026, repealing the 1997 Act and establishing an independent Public Service Commission with an expanded mandate. The new Act extends oversight to local government and public entities, empowers the Commission to direct implementation reporting, and creates penalties for obstruction, including imprisonment of up to 12 months or a fine of up to R50,000. The Presidency confirmed the Act’s mandate expansion, implementation reporting powers and obstruction penalties.
The Governance Lens
Municipal councils, SOE boards and public-entity governing bodies should prepare for expanded PSC oversight and information requests.
The PSC's recommendations are now binding and can only be challenged in court, strengthening accountability mechanisms.
Governing bodies should review their governance, appointment and service-delivery practices against PSC expectations.
Obstruction of the PSC is now a criminal offence, requiring careful cooperation and documentation.
Audit and risk committees should monitor PSC engagements and implement corrective actions promptly.
FIC Act Penalties: AML/CFT Governance Is a Board Responsibility
The Prudential Authority imposed administrative penalties totalling R35.6 million on Capitec Bank, Ninety One Assurance and Albaraka Bank for failures under the Financial Intelligence Centre Act. The sanctions, announced on 11 September 2026, followed inspections conducted between 2021 and 2023 and covered customer due diligence, enhanced due diligence, ongoing due diligence, regulatory reporting, employee training, sanctions controls and governance failures. Moonstone reported the total penalties, institutions and inspection period.
The Governance Lens
Boards of financial institutions must ensure that AML/CFT governance frameworks are adequately resourced and independently tested.
Section 42 governance failures demonstrate that board oversight of compliance programmes is subject to regulatory scrutiny.
Customer due diligence, enhanced due diligence and ongoing monitoring must be embedded in business processes, not treated as compliance checkboxes.
Employee training on AML/CFT obligations must be regular, documented and role-specific.
Audit committees should receive regular reporting on FIC Act compliance, regulatory inspections and remediation progress.
References: The Presidency (2026) President Ramaphosa signs Public Service Commission Bill into law, Moonstone (2026) FICA penalties for three financial institutions total R35.6m
King V Implementation: Compliance Is No Longer Sufficient
GOVERNANCE INTELLIGENCE
King V Implementation: Compliance Is No Longer Sufficient
Intelligence Brief
King V, effective for financial years beginning on or after 1 January 2026, is now exposing gaps between compliance and actual governance effectiveness. Regulators worldwide are accelerating rule-making, and South African boards face mounting pressure across AI governance, financial crime prevention and climate disclosure. King V's outcomes-based framework demands measurable evidence that governance practices actually work. Legal 500 reported that King V’s outcomes-based framework requires measurable evidence of effective governance practices.
The question is no longer whether organisations can tick compliance boxes, but whether they possess the integrated oversight, risk management and assurance capabilities to demonstrate effective governance.
Recommended Actions
Boards should move beyond compliance checklists and assess whether governance practices produce intended outcomes.
Governing bodies should integrate AI governance, financial crime prevention and climate disclosure into their risk and strategy oversight.
Company secretaries should facilitate board evaluations that measure effectiveness, not only compliance.
Internal audit should test whether governance controls operate effectively in practice.
Governing bodies should prepare for increased regulatory scrutiny of governance outcomes, not only processes.
NSFAS Board Reinstatement: Procedural Fairness Matters
Intelligence Brief
The Gauteng High Court ordered the reinstatement of seven NSFAS board members and suspended the appointment of the administrator pending final determination of the review application. The ruling underscores the governance importance of meaningful consultation, lawful intervention and procedural fairness. The NSFAS Board statement confirmed interim relief reinstating the board and suspending the administrator appointment.
The broader lesson applies beyond public entities: interventions, delegated authority and leadership changes must be legally grounded, clearly documented and capable of withstanding independent scrutiny.
Recommended Actions
Review the legal basis for any intervention, administrator appointment or board replacement.
Define the powers, reporting lines and limitations of interim office-holders.
Require formal handover and continuity plans during leadership changes.
Maintain complete records of resolutions, delegations and stakeholder communications.
Ensure urgent action does not displace procedural fairness and independent oversight.
References: Legal 500 (2026) Governance Has Moved Beyond Compliance, But Are South African Boards Ready?, Institute of Directors South Africa (2026) King V publications, South African Government (2026) NSFAS Board statement on the outcome of part of the court proceedings
RESOURCE OF THE PERIOD
Legal 500: Governance Has Moved Beyond Compliance
Overview
Legal 500's September 2026 analysis examines whether South African boards are ready for King V's outcomes-based governance framework. The article highlights mounting pressure across AI governance, financial crime prevention and climate disclosure, with regulators demanding measurable evidence that governance practices actually work. Legal 500’s September 2026 analysis addresses King V, AI governance, financial crime prevention and climate disclosure pressures.
Practical Benefit
The analysis assists boards, company secretaries and governance professionals in understanding the shift from compliance-focused governance to outcomes-based effectiveness. It provides a framework for assessing whether governance practices produce intended results and prepares organisations for increased regulatory scrutiny.
Access: Resource Legal 500: Governance Has Moved Beyond Compliance
References: Legal 500 (2026) Governance Has Moved Beyond Compliance, But Are South African Boards Ready?, SNG Grant Thornton (2026) Governance has moved beyond compliance, but are South African boards ready?
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The Editorial Team
The Hub Briefing