CATEGORIES
- (2)Account / Profile
- (499)Accounting
- (6)Audit
- (110)Auditing and Assurance
- (1)Business
- (3)Business Rescue
- (54)CIPC
- (6)Compliance
- (5)Ethics and Professionalism
- (29)Financial Reporting
- (3)Guides
- (2)Law
- (36)Legal and Compliance
- (2)Management
- (12)Money Laundering
- (1)Personal & Professional Development
- (1)Practice Management
- (1)Professional Ethics
- (1)Public Sector
- (59)Regulatory Compliance and Legislation
- (22)SARS Issues
- (10)Sustainability Reporting
- (20)Tax
- (1)Tax Update
- (1)Technology
- Show All
PPRA: Policy update re FFC renewal & historical penalties
- 04 July 2024
- Regulatory Compliance and Legislation
- South African Accounting Academy
In accordance with Regulation 15.4 of the Property Practitioners Act (PPA), it is mandatory for property practitioners intending to cease operations to formally notify the Property Practitioners Regulatory Authority (PPRA) of their decision not to renew their Fidelity Fund Certificates (FFCs) in writing.
Failure to adhere to this regulation has historically resulted in penalties being levied by the PPRA against property practitioners who re-register after a period of absence from the industry without proper notification as prescribed by the Act. The legislation was applied strictly irrespective of whether the practitioner operated within the industry during the period of absence.
However, after deliberation with stakeholders, the PPRA has decided to cease the imposition of such penalties, if the practitioner was not at any time during the non-renewal of the FFC, operating within the regulated sector. This policy change is effective from 20 June 2024.
Take note that this will operate going forward as from the date of implementation hereof (20 June 2024) and will not operate retrospectively.
Property practitioners who wish to re-register and apply for an FFC after a period of absence from the sector must complete the affidavit (available for download) affirming their non-engagement in property practitioner activities during their leave of absence from the industry and provide supporting documentation to the satisfaction of the PPRA.
The affidavit can be accessed at https://theppra.org.za/article/important_update_regarding_fidelity_fund_certificate_renewal_and_historical_penalties
Click here to access the update for download:
https://theppra.org.za/download.php?data_id=136009
Relevance to Auditors, Independent Reviewers & Accountants:
- The Property Practitioners 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 and independent reviewer, you need to consider and assess compliance with the PPA and relevant publications issued by the PPRA.
- As an accountant, you may need to advise your clients who are property practitioners on compliance with the PPA and adherence to the latest guidelines and notifications issued by the PPRA.
Relevance to Your Clients:
- A property practitioner has a duty to comply with the Property Practitioners Act.
- Your clients who are property practitioners, must not only comply with the PPA, but they also have to adhere to the latest guidelines and notifications issued by the PPRA.