pc
nid 94622
Aug 19, 2026
ggallwey@vixio.com
South Africa
Reserve Bank of South Africa
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1697 charsSouth Africa's Reserve Bank Invites Comment on Prudential Authority Budget Fees and Levies
On August 17, 2026, the Reserve Bank of South Africa (SARB) published Prudential Communication 12 of 2026, inviting public comment on the Prudential Authority's (PA) proposed budget, fees, and levies. The notice fulfils requirements under sections 239(1), 240, and 98 of the Financial Sector Regulation Act, 2017 (FSR Act).
The Prudential Authority, which operates as a division of the SARB, regulates and supervises financial institutions including banks, insurers, and other prudentially regulated entities in South Africa. The invitation for comment on budget fees and levies is a statutory obligation that allows stakeholders—including regulated entities, industry participants, and the public—to provide input on the PA's proposed funding mechanisms and fee structures. These fees and levies typically fund the PA's regulatory operations and supervisory activities. The communication includes annexures (A through E) containing detailed information regarding the proposed budget allocation and fee framework. Stakeholders are expected to review these supporting documents to understand the full scope of the proposal before submitting comments.
Interested parties should submit their responses within the timeframe specified in the notice. The exact comment deadline and submission procedures are detailed in the attached Prudential Communication document and its annexures. The PA will consider all feedback received during the consultation period before finalising the budget, fees, and levies framework. This process ensures transparency in the PA's funding arrangements and allows regulated entities and other stakeholders to engage meaningfully with the authority's financial planning.
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2355 charsSouth Africa's Reserve Bank Invites Comment on Prudential Authority Budget Fees and Levies
On August 17, 2026, the Prudential Authority (PA) published its proposed budget, expenditure estimates, levies and fees for the 2027/28 financial year for public consultation.
The PA proposes total expenditure of approximately R1.224bn, representing a decrease of approximately R312mn, or 20 percent, from the approved 2026/27 budget. The expenditure would be funded through approximately R656mn in industry levies, R11mn in fees and a R557mn contribution from the South African Reserve Bank. Deposit-taking institutions are expected to contribute approximately R353mn in levies, insurers R268mn and financial market infrastructures and other supervised entities R35mn.
The PA proposes increasing levy base amounts, variable rates and applicable maximum amounts by 3.7 percent for:
Banks and branches of foreign banks
Mutual and co-operative banks
Life, non-life and micro-insurers
Exchanges and central securities depositories
Independent and associated clearing houses
Central counterparties
Trade repositories
Over-the-counter derivative providers
The Road Accident Fund
The proposed increase is based on the South African Reserve Bank Monetary Policy Committee’s projected 2027 inflation rate . The final increase will be revised using the applicable Consumer Price Index rate published by Statistics South Africa in December 2026.
The draft PA Fees Determination also proposes a 3.7 percent increase in fees charged for applications, notifications, licences, approvals, exemptions and other functions performed under the Insurance Act , Banks Act , Mutual Banks Act , Co-operative Banks Act, and Financial Sector Regulation Act .
Fees would be inclusive of VAT and payable when the relevant application or specified notification is submitted. They would generally not be refunded where an application is unsuccessful or withdrawn. The determination would replace the 2026 PA Fees Determination, although its commencement date has not yet been specified.
Stakeholders must submit comments using the prescribed template in Word format to PA-Finance@resbank.co.za by September 30, 2026. PDF, scanned and late submissions will not be accepted without the PA’s prior written agreement. The PA will publish the comments received, together with the details of the relevant organisations or commentators, in its subsequent consultation report.