CIPC: Academic requirements for business rescue practitioner licensing

CIPC: Academic requirements for business rescue practitioner licensing

• 20 September 2024
• CIPC
• South African Accounting Academy

Summary:

The Companies and Intellectual Property Commission (CIPC) has issued a notice to advise all prospective applicants for Business Rescue Practitioners (BRPs) licenses, and all relevant stakeholders in respect to the educational requirements that are a requisite to be licensed as a BRP.

Article:

CIPC has as one of its key objectives in terms of section 186(c) to promote education and awareness of company and intellectual property laws, and related matters.

In reference to regulation 126 (4) (a)-(b), when processing an application for practitioner licensing, the Commission takes due regard to the qualifications of the applicant and must be satisfied with the education and experience of the applicant before it can issue a license. The educational requirement entails that the applicant must have acquired a professional qualification within a legal, accounting or business management profession. The qualification must at a minimum be a relevant bachelors’ degree of a National Qualification Framework (NQF) level 7 endorsed by the South African Qualifications Authority (SAQA).

All foreign qualifications must be evaluated and verified by SAQA to ensure the level of the National Qualifications framework at which the foreign qualifications should be recognized. Certificates on workshops, seminars, short courses do not constitute professional qualifications that enable an individual for business rescue practitioner licensing.

The Commission kindly informs all prospective applicants that educational qualifications are a requisite to be licensed as a BRP and all applicants should take due regard of their qualification and whether their qualifications meet the SAQA criteria. Applications for licensing that do not meet the criteria will be rejected.

Click here to download Notice 62 of 2024:

https://www.cipc.co.za/wp-content/uploads/2024/09/Educational-Qualifications-for-BRP.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• The Companies Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• As an auditor, independent reviewer and accountant, you also need to monitor your client’s compliance with the Companies Act and all relevant notices/enforcements/practice notes issued by CIPC as the regulator.
• Where you perform these compliance tasks on behalf of your client, you need to ensure that you comply with all relevant notices/enforcements/practice notes and that you are aware of the latest media statements issued by CIPC as the regulator.
• Company Secretarial staff play a critical role in bridging the gap between entities and CIPC. As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for companies and company secretarial practitioners to keep abreast of such changes in so that companies continue to meet their compliance obligations.

Relevance to Your Clients:

• Prospective applicants for Business Rescue Practitioners (BRPs) licenses, and all relevant stakeholders should be aware of the educational requirements that are a requisite to be licensed as a BRP.
• An entity (company or close corporation) has a duty to comply with the Companies Act, and all relevant notices/enforcements/practice notes and to be aware of the latest media statements issued by CIPC as the regulator.

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