Key fintech policy developments to watch in 2026
Regulatory initiatives across payments, digital assets, open finance and embedded finance are expected to progress this year.
#PrudentialAuthority
Cyber compliance is now a mandatory aspect of an FSP’s risk management
With data breaches costing firms tens of millions per incident, Joint Standard 2 forces financial institutions to strengthen governance, monitoring, and incident response.
Ithala depositor payouts to continue through 2026 with three-year claim window
FNB has disbursed over R1 billion to Ithala customers and is sending about 5 000 SMS notifications per day to schedule branch visits.
Rulings define scope of PA’s powers under transitional insurance laws
The Tribunal and the High Court delivered key decisions emphasising proportional enforcement and the proper use of transitional provisions.
Transitional delegations under the FSRA pushed to 2028/29
New end-dates extend the temporary allocation of certain supervisory duties to the FSCA and PA while regulatory frameworks are finalised.
Relief at last: Ithala depositors can access frozen funds from 8 December
Treasury’s R2.2bn intervention ends an 11-month account freeze, unlocking payouts for Ithala’s 257 000 depositors while the liquidation case continues.
FSCA and PA publish comprehensive study into AI use in financial sector
The regulators will issue a discussion paper to clarify governance, disclosure, and consumer-protection expectations.
PA fines Discovery Bank R3m for FICA compliance failures
A 2021 inspection found late submission of suspicious activity reports, inadequate staff training, delayed monitoring responses, and shortcomings in the bank’s RMCP.
High Court rules on SARS’s R5.3bn claim against Sasfin Bank
The judgment dismissed parts of Sasfin’s exceptions and left SARS’s statutory claim under the Financial Sector Regulation Act to proceed.
Regulators invite comment on draft IT and cyber incident reporting rules
Financial institutions subject to Joint Standards 1 of 2023 and 2 of 2024 are asked to provide feedback by 5 October 2025.
PA publishes its proposed levy and fee increases for 2026/27
The Authority expects to reduce its budget deficit by 28%, driven by a 3.3% revenue uplift and planned cost-cutting measures to streamline operations.
SARB moves to liquidate community bank
Ditsobotla is in worse financial shape than previously thought, and the resolution process is unlikely to turn things around.
Court slaps Ithala for ignoring warnings, upholds repayment administrator’s authority
The High Court says the state-owned financier must comply with deposit controls while awaiting the Supreme Court of Appeal’s ruling.
Community-owned bank placed in resolution as SARB steps in
Ditsobotla co-operative bank has been placed in resolution after the SARB cited regulatory breaches, financial losses, and governance failures.
Authorities developing Joint Standard on cloud computing and data offshoring
The FSCA and PA publish recommended best practices, urging financial institutions to adopt a risk-based approach aligned with their size and complexity.
Ithala warns court ruling could shut bank before liquidation appeal
The repayment administrator and the Prudential Authority appealed a High Court ruling that allowed Ithala to continue operating while liquidation proceedings are pending.
FSCA publishes 2025–2028 Regulation Plan to guide financial sector reform
A top priority is supporting National Treasury in finalising COFI and rolling out the themed frameworks.
