As August draws to a close, we’re reminded of former British Prime Minister Harold Macmillan’s 1960 address to the South African Parliament, not only because of the blustery seasonal winds, but also his famous words: “The winds of change are blowing.”
The inevitability of upcoming legislative shifts is becoming increasingly clear, as is the regulators’ need for a thorough ‘spring clean’ of their databases. In the same spirit, we’re taking a fresh look at the operations and standards of the companies we work with to ensure we’re well prepared for what lies ahead.
So, it’s time to dust things off and get ready for change.
THE FINANCIAL SECTOR CONDUCT AUTHORITY (FSCA)
Warnings
Here is the usual list of warnings regarding unlicensed trading, scams, and impersonators:
Warnings were issued regarding impersonations of PSG Wealth Financial Planning (Pty) Ltd; Altron TMT (Pty) Ltd; Portdem (Pty) Ltd; Dr Leila Fourie of the Johannesburg Stock Exchange (JSE); VALR (Pty) Ltd; Wealthpoint Capital (Pty) Ltd; FSCA ex-employee Brandon Topham; Richard Willis and Cara Fernandes of Clive Douglas Investments (Pty) Ltd; Ukuchuma (Pty) Ltd; Kuseni Dlamini and Grant Field of Fedgroup Financial Services (Pty) Ltd; Gold Trading Advisors Ltd who are impersonating Astrix Data (Pty) Ltd; and deepfakes of Siya Kolisi but with a very different accent!
Other communications warn consumers about Frank Kabelo Mashilo and Mashram United Funeral Undertakers’ Compliance Organisation who are potentially conducting unlicensed insurance business; NkonyanaLobom (Pty) Ltd and Lwando Tinzi of Trade with Tinzi who are potentially soliciting money from the public; a WhatsApp group called A503 Stock Growth Community operated by Mark Randall that is falsely claiming affiliation to the FSCA and JSE and soliciting funds from the public; and Octodec Invest Ltd which is also claiming to be linked to the JSE and soliciting funds from the public.
Joint Communication on cloud computing
The FSCA and the Prudential Authority (PA) issued Joint Communication 2 of 2025 to guide financial institutions on mitigating risks linked to cloud computing and offshore data storage. The communication emphasises robust governance, due diligence, and legal compliance, and calls for institutions to align their strategies with their risk appetites and operational complexity.
A formal Joint Standard regulating cloud and data offshoring practices is in development, and will soon be open for public consultation. Supervisory oversight will intensify over 2025–2026 as the authorities enhance their regulatory frameworks in this evolving digital environment.
Database migration
The FSCA is in the process of migrating its database as part of the preparation for the introduction of the Conduct of Financial Institutions legislation. This means that Financial Services Providers (FSPs) can expect to receive queries regarding their licence information held by the FSCA.
It is a licensing requirement that FSPs keep this information up to date with the FSCA and it usually falls to the Compliance Officers to get it done (but only if they are kept informed – Ed.).
FSPs may receive queries based on mismatched information in their financial statements or when submitting profile changes. Your compliance officer should be able to assist in resolving any query.
MIE background checks
As noted in Communication 7 of 2023, the FSCA is requiring all Key Individuals, directors, shareholders, members, and trustees who have not yet undergone a background check to submit to one. The outsourced provider for this process is MIE.
Provided your contact details are up to date and you have not had an FSCA background check in the last 24 months, you might be on the list.
A word of caution: do not attempt to pre-empt the FSCA and conduct your own check or provide a recent one, as the FSCA has a specific list of checks it wants performed and wants to receive the results directly. More importantly, the FSCA is funding the background checks.
The process is quite simple: just respond to the mail, follow the steps, and stay in the FSCA’s good books!
Amendment to JSE naming conventions
The JSE advised members that the proposed amendments to the JSE Equities rules and directives and JSE Interest Rate and Currency rules were adopted by the JSE Rules Committee on 2 July 2025.
The JSE and the FSCA have reached an agreement that the JSE will amend the JSE rules by replacing all specific references to “Strate” with “the central securities depository”.
FINANCIAL INTELLIGENCE CENTRE
FATF concludes on-site visit of South Africa
The Financial Action Task Force (FATF) Africa Joint Group concluded an on-site assessment visit of South Africa from 29 to 30 July 2025. This was the last step before the October 2025 FATF Plenary considers whether to remove South Africa from the “greylist”.
The FATF Africa Joint Group will now submit a report to the October 2025 FATF Plenary, which will consider any recommendations from the report on whether South Africa should be delisted from the FATF greylist.
FIC reminder: Register under correct item numbers
The FIC issued a reminder to all accountable institutions to ensure they are correctly registered under the appropriate item numbers as listed in Schedule 1 of the Financial Intelligence Centre Act (FIC Act). This follows the legal obligation under section 43B of the Act, which requires institutions to register and maintain accurate registration details within 90 days of commencing business.
Incorrect or incomplete registrations, particularly those mistakenly registered as “Business Entities with a Reporting Obligation” under section 29, must be corrected via the goAML platform. Each distinct business activity falling under separate item numbers requires a separate registration.
Failure to register correctly constitutes non-compliance and may result in administrative sanctions. The FIC began verifying “Business Entity” registrations from 31 May 2025 and may take enforcement action where misclassifications persist.
For more information or to update your registration, visit: https://goweb.fic.gov.za
PRUDENTIAL AUTHORITY (PA)
Basel III output floor reforms
The PA issued Circular 4 of 2025 to guide banks on the implementation and reporting of the Basel III post-crisis output floor reforms. The Circular took effect from 1 July 2025.
The phased output floor sets a minimum capital requirement based on standardised approaches to enhance risk-weight comparability. The aim is to reach 72.5% by 2028. This Circular replaces Directive 3 of 2013 and applies across all tiers of a banking group, including foreign operations, with reporting obligations clarified accordingly.
The CEOs and auditors of all regulated institutions are required to acknowledge receipt.
Directive on forest and agricultural land exposures
The PA issued Directive 9 of 2025 to clarify the regulatory treatment of credit exposures secured by forest and agricultural land. The guidance takes effect from 1 August 2025 and addresses the gap in the Regulations relating to banks, as previously there were no explicit risk-weighting instructions for such land types outside of land acquisition, development, and construction (ADC) contexts.
It is worth noting that forest and agricultural land can be included as security even if not associated with finished properties or formal planning consent, but this affects their classification in terms of ADC exclusions.
Banks must ensure compliance with the Directive and, as usual, submit an acknowledgement of receipt by both the CEO and external auditors to the PA.
Pillar 3 disclosure framework changes
The PA issued Directive 10 of 2025 on 11 August 2025. It replaces Directives 11 of 2015, 1 of 2018, and 1 of 2019 and updates South Africa’s Pillar-3 disclosure framework under the Banks Act.
The Directive removes the detailed requirements from regulation 43 of the Regulations relating to banks and incorporates them into the Directive, aligning with the Basel Committee’s global standards. It applies to all banks, controlling companies, and branches of foreign institutions, requiring the use of standardised templates and tables (Annexures A and B) for disclosures on capital adequacy, liquidity, leverage, governance, risk management, credit and market risk, operational risk, remuneration, and more.
Key provisions address scope, timing (up to 120 days post year-end), archiving (minimum five years), assurance (board-level sign-off), presentation, and format. The requirements aim to enhance transparency, comparability, and market discipline, and apply for reporting periods ending on or after the effective date.
Once again both the CEO and external auditors must submit an acknowledgement of receipt to the PA.
NATIONAL TREASURY (NT)
Demarcation Regulations: 2025 Escalation of Benefits
The Demarcation Regulations specify which types of contracts are regulated under the Long-term and Short-term Insurance Acts as health policies and accident and health policies, respectively. These policies are therefore excluded from the Medical Schemes Act.
The Minister of Finance approved the annual Policy Benefit Escalations which are available here for long-term and here for short-term policies.
A-PROOFED
One wrong word: why precision matters
Bryan opened this month’s update with Harold Macmillan’s reminder that the “winds of change are blowing”. He was talking about regulators tidying databases, rewriting rules, and shaking things up. I cannot help but think those winds blow through our words too. Every report, every policy, every client email is only as strong as the precision of its language. And one wrong word can blow everything off course.
The Financial Intelligence Centre warns that choosing the wrong item number can land you in the wrong category. The FSCA’s database migration means a single mismatched detail can spark a flood of queries. Even the JSE is replacing “Strate” with “the central securities depository.” Pedantic? Not at all. Words carry weight.
Fraudsters have figured that out too. An email with one letter out of place, a WhatsApp group with an official-sounding name, or a deepfake that is almost convincing is all they need. They don’t need to be brilliant when a small slip is enough.
And it is not only regulators or fraudsters who notice. Clients do too. A missing word in a contract, a typo in a presentation, or a muddled sentence in a report can quietly chip away at confidence. First impressions count, and often it’s the little things that people remember most. Nobody recalls the forty pages that were correct, but everyone spots the one awkward error on the first page.
That is where I come in. I’m not scared of words. I love them. But I also respect how much trouble a misplaced one can cause. A stray comma can change a clause. A wrong digit can trigger an audit. A typo in a report can knock the shine off your professionalism. Even Shakespeare would have raised an eyebrow at the kind of chaos a modern regulator can find in a single missing comma.
Proofreading isn’t just cosmetic. It’s not about fussing over grammar for the sake of it. It’s about protecting your reputation, keeping your documents watertight, and saving you from those avoidable headaches that creep in under pressure. It’s also about confidence. When you send out a document that has been proofread, you know it will land smoothly. No backpedalling, no red faces, no awkward corrections later. Just words doing the job they are meant to do.
Proofreading is personal for me. I spot the slips others miss, smooth out the rough edges, and make your documents shine. I do it because I love words, and because I refuse to let something small trip up something important.
So, while Bryan reminds us that the winds of change are blowing through regulation, let me remind you they are blowing through language too. A gust of sloppiness can rattle even the strongest reputation. The good news is that with careful proofreading, those winds carry your message exactly where you want it to go.
Because in compliance, as in language, one wrong word is one too many.
Let’s talk.
083 657 3377 | kim@a-proofed.co.za
