FSCA Launches Section 135 Investigation into Public Investment Corporation

Posted 15 July 2026 Written by Acts Online
Category Financial Services

Brought to you by SAnews: The Financial Sector Conduct Authority (FSCA) has initiated an investigation into the Public Investment Corporation (PIC) following whistleblower allegations of unethical practices and governance failures.

In terms of section 135 of the Financial Sector Regulation Act, No. 9 of 2017 (FSRA), the FSCA is investigating recent developments at the PIC concerning governance, leadership stability, transparency, and market integrity. The PIC Board has confirmed it has provided the FSCA with requested documentation and information regarding the whistleblower report and associated internal governance processes.

The investigation coincides with significant leadership changes at the state-owned asset manager:

  • Chief Executive Officer Patrick Dlamini has been placed on precautionary suspension following allegations of impropriety detailed in a whistleblower report submitted in June 2026.
  • Government Employees Pension Fund (GEPF) Acting Chief Investment Officer August Van Heerden has ceased serving in his temporary role at the PIC.
  • Leon Smit, the PIC’s current Head of Fixed Income in Listed Investments, has been appointed as the Acting Chief Investment Officer to maintain operational stability.

The FSCA has expressed concern regarding whether the PIC is consistently upholding the heightened governance standards required of South Africa’s largest asset manager and custodian of public sector savings.

What this means for you, your business, or your clients

  • For yourself: No direct individual compliance obligations; monitor the FSCA’s findings under section 135 of the FSRA to understand evolving regulatory expectations for fiduciary conduct.
  • For your business: Financial services firms and asset managers must review their internal whistleblower protocols and governance frameworks to ensure alignment with FSRA standards and mitigate regulatory intervention risks.
  • For your clients: Institutional clients, particularly public sector pension funds and entities holding assets managed by the PIC, should assess the potential impact of leadership instability on investment mandates and portfolio oversight.

Originally published at https://www.sanews.gov.za/south-africa/pic-board-welcomes-fsca-probe

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