Proposed Directive on Securitisation Vehicle Risk Disclosures

SARB Prudential Authority

Published March 20th, 2026

Detected April 1st, 2026

Summary

The South African Reserve Bank Prudential Authority issued Proposed Directive BA501 requiring issuer Special Purpose Institutions (SPIs) to disclose enhanced securitisation risk information. The directive replaces Directive 4 of 2017 and mandates that auditors include verification of Annexure A requirements in annual audits. Comments are being solicited on this proposed directive.

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What changed

The Prudential Authority proposes Directive BA501 to require issuer SPIs to provide enhanced risk information regarding securitisation structures, addressing risks revealed by the global financial crisis. The directive specifies information requirements under Directive 1 of 2012 and requires auditors appointed by issuer SPIs to verify the information specified in Annexure A as part of the annual auditing process. This replaces Directive 4 of 2017 dated 27 September 2017.

Banks and financial institutions involved in securitisation activities as SPIs should review the proposed directive and submit comments by the specified deadline. They must prepare to comply with enhanced disclosure requirements and ensure their auditors can verify the Annexure A information. Failure to provide required disclosures may result in regulatory action under the PA's supervisory framework.

What to do next

Review Proposed Directive BA501 and assess current securitisation disclosure practices against new requirements
Prepare comments on the proposed directive and submit to the PA before the comment close date
Coordinate with appointed auditors to ensure verification of Annexure A information can be incorporated into annual audit scope

Source document (simplified)

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Title : Proposed Directive on matters relating to securitisation vehicles - BA501 Published Date: 2026-03-20 Last Modified Date: 2026-03-24, 02:05 PM Category: Prudential Authority > PA Documents issued for Consultation | Publications > Prudential Authority In light of certain risks revealed by the global financial crisis in some securitisation structures, additional risk information is required by the Prudential Authority (PA) to enhance the PA’s understanding of the risks in the South African securitisation market.
The purpose of this proposed directive is to direct issuer special purpose institutions (SPIs) on the information required to be provided to the PA in terms of Directive 1 of 2012, dated 23 January 2012, and the declaration required to be provided to the PA.
Furthermore, the proposed directive requires the auditor as appointed by the issuer SPI – as prescribed in paragraph 15(1)(a) of Government Notice No. 2 (the Securitisation Exemption Notice), published in Government Gazette No. 30628, dated 1 January 2008 – to include the verification of the information specified in Annexure A in the scope of work to be done as part of the annual auditing process.
This proposed directive is intended to replace Directive 4 of 2017, dated
27 September 2017.

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