Regulatory Alerts2026-02-26
Directive 1 of 2026 on Governance Tenure
The Prudential Authority issued Directive 1 of 2026 to require all South African banks and controlling companies to implement a board-approved policy governing director tenure, independence, and appointment processes. Replacing Directive 4 of 2018, the directive establishes a standard nine-year tenure limit for independent non-executive directors while granting the regulator discretion to approve extensions of up to 24 months. It further codifies objective independence tests, mandatory cooling-off periods for former executives and auditors, and rigorous board selection criteria to strengthen corporate governance across the banking sector.
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