PPRA: Guidelines on FFC registration and trading name requirements

PPRA: Guidelines on FFC registration and trading name requirements

• 11 September 2024
• Regulatory Compliance and Legislation
• South African Accounting Academy

Business Property Practitioners (BPPs) with branches or subsidiaries are referred to the detailed guidelines on FFC registration and trading name requirements.

• If a BPP (firm) is registered and has branches which operate at different addresses but under the SAME trading name as the juristic entity, these will be recorded in PPRA records by noting the various addresses where the firm operates. The firms will all use the same FFC.
• If the BPP (firm) is registered and has branches or subsidiaries of the same juristic entity, but use a DIFFERENT OR PARTLY DIFFERENT NAME, each branch needs a separate FFC. The company will be required to pay an administration fee for the firm FFC for each branch because they will have different trading names.

Details on registration in this instance, is set out in detail in the notice, as follows:

1. The same company name is registered for each branch / subsidiary;
2. Each branch has a different trading name and is registered as such; and
3. The same directors / members /trustees who are registered under the main firm, must be registered under the branch, but the employees may be different.
4. If the company and the branches have the same name and trading name, they do not need separate registrations, but can all use the same FFC.

Click here to download the Notice document:

https://theppra.org.za/download.php?data_id=138230

Relevance to Auditors, Independent Reviewers & Accountants:

• The Property Practitioners Act is yet another piece of legislation that your clients (who are pension funds) 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 need to consider your client’s compliance with the new Property Practitioners Act, and be aware of guidance published by the PPRA, such as notices.
• As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for practitioners to keep abreast of any changes in so that they can continue to advise their clients accordingly.

Relevance to Your Clients:

• Property practitioners should be aware of notices and other guidance published by the PPRA.
• As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance business property practitioners to be aware of the latest changes that may affect them, e.g. information provided as guidelines.

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