Regulatory Alerts2018-10-05
Directive 4/2018 on Sound Corporate Governance and Director Appointments
The Prudential Authority issued Directive 4/2018 to mandate that all South African banks and controlling companies implement a robust, board-approved corporate governance policy focused on director and executive officer appointments. The directive establishes strict independence criteria, including objective tests for shareholding, funding, remuneration, and prior executive roles, while enforcing cooling-off periods and rigorous candidate selection processes. Institutions must amend their existing policies within six months and achieve full board composition compliance within eighteen months to ensure fit-and-proper leadership and mitigate conflicts of interest.
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