IN A NUTSHELL: King V, South Africa’s fifth code of corporate governance, gives trustees a stronger, clearer set of expectations to help ensure retirement fund members’ interests are protected.
The updated King Code on Corporate Governance — known as King V — will apply from 1 January next year. It’s the latest version of a best practice framework that has for almost 30 years, guided the standards of corporate behaviour and governance for South African organisations.
For trustees of retirement funds, King V matters because it helps set the standard for how retirement funds and their service providers, such as retirement fund administrators and asset management companies, should operate. The world is changing fast — from climate risks to global conflicts to new regulations — and boards need clearer guidance on how to respond responsibly.
What is the King Code?
The King Code was named after prof. Mervyn King, the chairman of the King Committee, and became a global benchmark for governance. The revised code uses plain language and simplifies and consolidates the guiding principles from 17 in King IV to 13 in King V.
The King V Report consists of four standalone documents, namely King V Code, King V Glossary, King V Foundational Concepts, and the newly added King V Disclosure Framework.
How King V is different
Parmi Natesan, CEO of the Institute of Directors SA (IoDSA), says a groundbreaking change in King V is the standalone Disclosure Framework that outlines how and what organisations need to disclose on their application of King V.
“The Disclosure Framework is a game-changer, as it standardises the form and content for corporate governance reporting and will improve transparency.”
Previously, it was not evident which practices organisations put in place to govern each area, and which ones they chose not to apply. The new Disclosure Framework is expected to bring consistency and comparability into these disclosures, says Natesan.
The framework should be published on the organisation’s website alongside the other external reports issued by the organisation.
What trustees should know
Tony Remas, retirement fund compliance consultant, says King V is outcomes-based and seeks to ensure an ethical culture, performance and value creation, conformance and prudent control, and legitimacy.
The Disclosure Framework operationalises the “apply and explain” regime by requiring governing bodies to disclose not only whether recommended practices have been adopted, but also to explain any deviations and the compensating measures implemented.
“Overall, King V is a mature and forward-looking framework that balances rigour with flexibility. It invites governing bodies to apply their minds, not just tick boxes,” says Remas.
His advice to retirement fund trustees who are engaging with King V for the first time is to start with the basics: by reading the King V Foundational Concepts. It explains the heart of the code in plain terms.
He also advises trustees to use the Disclosure Framework as their guide. “It’s a tool to help you reflect on your fund’s values, actions, and impact. It acts as a mirror that shows how well your fund is living up to its promises.”
Remas reminds trustees that governance is not only about board meetings. It affects members’ futures.
“King V is about applying governance with heart and mind. For retirement funds, it’s a chance to show members that their money is in safe, ethical, and thoughtful hands. And for trustees, it’s a call to lead with integrity, courage, and care.”
Further reading
IoDSA: King V Report on Corporate Governance for South Africa
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