Valuator Requirements for Resolution Under FSR Act

The SARB Prudential Authority has published Prudential Communication 4 of 2026 establishing a comprehensive framework for valuators appointed for resolution purposes under the Financial Sector Regulation Act, 2017. The standard codifies requirements across six key areas: independence (ensuring valuators are free from conflicts of interest), competence (qualifications and expertise standards), governance (internal controls and oversight mechanisms), methodologies (valuation approaches and assumptions), information access (rights to obtain necessary data), and reporting (documentation and disclosure obligations).

Financial institutions subject to resolution proceedings and valuators seeking appointment by the resolution authority should immediately review the attached Prudential Standard Valuators to understand compliance obligations. Valuators must establish policies demonstrating independence from the entity under resolution, maintain appropriate professional qualifications, and implement governance frameworks that ensure valuation integrity. Non-compliance with these standards may affect eligibility for appointment in future resolution proceedings.