Proposed Directive on Bank Reporting Requirements (Regulation 46)

The Prudential Authority, part of the South African Reserve Bank, has released a proposed directive for public consultation concerning the auditing and review requirements for specific Banks Act (BA) returns under Regulation 46. This directive clarifies which BA returns must be subjected to limited assurance audits as part of auditors' reporting obligations, thereby detailing the scope and nature of assurance services required for regulatory compliance.

Financial institutions, particularly banks, and their external auditors should review this proposed directive to understand the updated assurance requirements for regulatory reporting. The consultation period is open, and feedback is solicited. While a specific compliance deadline is not yet set, regulated entities should prepare for potential changes to their audit and assurance processes once the directive is finalized. Non-compliance with future finalized requirements could lead to regulatory scrutiny.