Comments invited on Prudential Authority budget and levy proposals
South Africa's Prudential Authority has invited public comments on its proposed 2027/2028 budget, expenditure estimates, and updated fee and levy structures. Financial institutions and interested parties must submit responses via email by September 2026.
Calculating the cost of supervision
Under sections 239, 240, and 98 of the Financial Sector Regulation Act 9 of 2017, the Prudential Authority is required to maintain a transparent process when setting supervisory levies and operational budgets.
The public consultation package includes the proposed 2027/2028 budget alongside projected expenditure estimates for the 2028/2029 and 2029/2030 financial years.
Additionally, the release details draft amendments to Schedule 1 of the Financial Sector and Deposit Insurance Levies Act 11 of 2022, a formal explanation of variations from previous budgets, and proposed administrative fees for regulated entities.
Interested parties are instructed to submit feedback using the official comments template.
Statutory governance and accountability
The Financial Sector Regulation Act mandates that budget and fee determinations follow strict public consultation procedures without compromising the administrative independence of the regulator.
By requiring published financial projections and comparative explanatory notes, the statutory framework ensures regulated financial institutions can scrutinize changes relative to prior financial years.
All supervised entities and stakeholders are subject to the proposed fee adjustments, which fund the ongoing prudential supervision of South Africa's banking, insurance, and financial market infrastructures.
Necessary rigor, tight timelines
The consultation enforces welcome governance by forcing the regulator to justify operational costs transparently.
However, imprecise deadline wording creates unnecessary procedural ambiguity for supervised entities preparing feedback.
Financial firms must scrutinize the proposal promptly to keep regulatory levies proportionate.