NEW! Beneficial Ownership Register for Trusts

NEW! Beneficial Ownership Register for Trusts

• 19 October 2023
• Accounting
• South African Accounting Academy

The purpose of this Directive is to direct all Masters in the performance of their functions regarding the Master’s duty to keep an electronic Beneficial Ownership Register (BOR) for Trust matters.

With the amendment of the Trust Property Control Act by the General Laws Amendment Act the Master’s office had to establish and record the beneficial ownership of trusts. Within the short timeframe, the Master’s office created a temporary Google document for the register.

The new online beneficial ownership register is web-based and will ensure that trustees can submit the information safely. 

As part of the Chief Master’s statutory obligations, the following direction is being given to clarify and ensure uniformity in all Master’s Offices:

1. The previously used Google form will be decommissioned and data migrated.

2. Trustees (including other authorised parties) will need to register on the system to start submitting, viewing and updating the Beneficial Ownership Register for their trusts.

• A defined Excel template is available for download at https://trustonline.justice.gov.za/Masters) 

3. Automated checks are built into the system to validate the correctness and completeness of key data elements of the submitted information.

4. Access to the information on the Beneficial Ownership Register (BOR) of trusts will done as set out in the directive (formal, written request on letterhead, proof of qualification to be granted access to the information, designate officials must provide details).

5. Trustees and trusts must adhere to their obligations as set out in the Act (read with the Regulations).

6. The period under which compliance is required is from 1 April 2023.

7. Non-compliance by trustees to the direction paragraphs may lead to a penalty of up to R10 million or imprisonment for a period not exceeding 5 years, or both.

Click here to download the Directive:

https://www.justice.gov.za/master/m_docs/2023-08_CHM-directive.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• This Directive is issued i.t.o. Section 3 of the Judicial Matters Amendment Act, 205, which requires the Chief Master to “exercise control, direction and supervision over all the Masters”, and Section 2(1) of the Administration of Estates Act 66 of 1965.

• The above acts are yet more pieces 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 who has trusts as clients, you need to consider the trust and the trustees are meeting their obligations, including the submission of Beneficial Ownership information, as required.

• If you are advising your clients, you need to be aware of the latest information and directives that have been issued by the Master’s Office.

Relevance to Your Clients:

• All Masters have a duty to keep an electronic Beneficial Ownership Register (BOR) for Trust matters.

• Trustees have certain obligations that must be fulfilled, including the submission of Beneficial Ownership information, as required.

• Your clients need to be aware of the latest information and directives that have been issued by the Master’s Office.

1 COMMENTS

LEAVE A COMMENT