CMS Extends Comment Deadline for Auditor Rotation Proposals

Posted 17 February 2026 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The Council for Medical Schemes has extended the submission deadline for comments regarding proposed changes to auditor independence and rotation requirements.

In terms of the Medical Schemes Act, No. 131 of 1998, the Council for Medical Schemes (CMS) has issued Circular 1 of 2026. This notice informs medical schemes, audit committees, and authorised auditors of an extension to the comment period for Circular 44 of 2025, which was originally published in December 2025.

Circular 44 of 2025 outlines proposed regulatory shifts intended to foster independence and economic inclusion within the medical schemes environment. The primary proposals include:

  • The introduction of mandatory auditor rotation requirements for medical schemes; and
  • Restrictions on the provision of non-audit services by external assurance providers.

The initial deadline for submissions, set for 30 January 2026, has been revised. Stakeholders now have until 30 April 2026 to provide feedback. This extension is intended to allow audit committees sufficient time to deliberate on the proposals during their scheduled meetings. The CMS intends for these requirements to take effect for financial years beginning on or after 1 January 2027.

Click here to download the Circular 1 of 2026.

Click here to access the Memorandum on Auditor Independence and Economic Inclusion.

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; impact is channelled through firm-level compliance and audit committee oversight for professionals serving the medical schemes sector.
  • For your business: Audit firms and assurance providers must assess the potential impact of mandatory rotation and non-audit service restrictions on their current medical scheme portfolios and future service delivery models.
  • For your clients: Medical schemes and their audit committees must utilise the extended period to evaluate the proposed independence requirements and submit formal comments by the 30 April 2026 deadline to ensure their operational constraints are considered.

Originally published at https://accountingacademy.co.za/news/read/cms-circular-1-of-2026-extension-re-comments-on-circular-44-of

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