FSCA and PA Publish Draft Joint Standard on Beneficial Ownership Requirements

Posted 11 September 2026 Written by Acts Online
Category Financial Sector Regulation

Brought to you by SA Accounting Academy: The Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA) have published a draft Joint Standard setting out regulatory requirements pertaining to the beneficial owners of financial institutions.

Issued under the regulatory framework of the Financial Sector Regulation Act, No. 9 of 2017, the draft standard introduces minimum fit and proper standards for natural persons who ultimately own or control licensed financial institutions, aligning South African regulatory oversight with Financial Action Task Force (FATF) transparency benchmarks.

Key Governance and Compliance Obligations

The draft Joint Standard applies across prudentially and conduct-regulated financial institutions, requiring regulated entities to implement internal control and governance mechanisms to ensure ongoing visibility into their ownership structures. Key proposals include:

  • Identification and verification: Establishing and operationalising internal mechanisms to identify, verify, and document all natural persons who hold beneficial ownership or exert ultimate control over the entity.
  • Fit and proper criteria: Requiring beneficial owners to satisfy defined standards of honesty, integrity, competence, and financial standing to mitigate the risk of financial crime and illicit influence.
  • Record-keeping and updates: Mandating the maintenance of accurate, up-to-date statutory registers of beneficial ownership, with direct reporting mechanisms to the FSCA and the PA upon material changes in control.
  • Oversight and reporting: Directing boards of directors and governing bodies of financial institutions to maintain formal policies ensuring non-compliant beneficial owners are flagged and addressed.

Click here to download the Draft Joint Standard on Requirements Pertaining to Beneficial Owners.

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

  • For yourself: Legal advisors, compliance officers, and company secretaries must familiarise themselves with the proposed verification thresholds to advise governing boards on identifying ultimate natural person owners through complex corporate tiers.
  • For your business: Regulated financial institutions and advisory practices must audit their current beneficial ownership registers, review onboarding verification protocols, and prepare governance policies for reporting ownership changes to the FSCA and PA.
  • For your clients: Beneficial owners, controlling shareholders, and institutional investors holding significant stakes in regulated financial institutions face strict fit and proper vetting and will be required to disclose comprehensive ownership documentation.

Originally published at https://accountingacademy.co.za/news/read/fsca-draft-joint-standard-requirements-pertaining-to-beneficial-owners

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