PSCC: AFFIDAVIT = BEE CERTIFICATE WHEN TURNOVER DOES NOT EXCEED R 2,5 MILLION PER ANNUM

Please be advised that it is stated in Section 8.6 of the Property Sector Code that:

An EXEMPTED MICRO ENTERPRISE (“EME”) is only required to obtain a sworn affidavit or certificate from the Companies and Intellectual Property Commission (CIPC) on an annual basis confirming the following:-

8.6.1     Annual turnover based on the EME threshold table
8.6.2     Level of black ownership

We have tested this and it appears that CIPC does not issue such affidavits or certificates.

We have been in touch with Ms Portia Tau-Sekati of the Property Sector Charter Council who confirmed that despite Clause 8.6, EME’s only need to obtain an affidavit as per the template below.

PSCC SWORN AFFIDAVIT – B-BBEE EXEMPTED MICRO ENTERPRISE – PROPERTY SECTOR

 

 

FIC Amendment Act Penalties for Non-Compliance

The FIC Act has two types of penalties for contraventions or acts of non-compliance with the FIC Act.  The first is administrative sanction(section 45C(3))  for non-compliance with the FIC Act which includes:

(a)          A caution not to repeat the conduct which led to the non-compliance referred to in subsection (1);

(b)          a reprimand;

(c)           a directive to take remedial action or to make specific arrangements;

(d)          the restriction or suspension of certain specified business activities;

or

(e)          a financial penalty not exceeding R10 million in respect of natural persons and R50 million in respect of any legal person.

The second type of penalty is the criminal sanction for contraventions of certain offences.  The maximum penalty for these offences are 15 years or a fine not exceeding R100 million.  There are also certain lesser offences that carry penalties of maximum sentences of five years or a fine not exceeding R million.

You may refer to sections 46 to 68 of the FIC Act for the specific acts of non-compliance and offences provisions.

www.fic.gov.za

Comment: Property Practitioners Bill

The Portfolio Committee on Human Settlements invites interested people and stakeholders to submit written comments on the Property Practitioners Bill [B 21 – 2018].

The Bill seeks to provide for the regulation of property practitioners; to provide for the continuation of the Estate Agency Affairs Board as the Property Practitioners Regulatory Authority; to provide for the appointment of the members of the Board and matters incidental thereto; to provide for the appointment of the Chief Executive Officer and other staff members of the Authority; to provide for the establishment, appointment, powers and functions of the Property Practitioner’s Ombud Office; to provide for compliance with and enforcement of the provisions of the Act; to provide for the continuation of the Estate Agents Fidelity Fund as the Property Practitioners Fidelity Fund; to provide for consumer protection; to provide for the repeal of the Estate Agency Affairs Act, 1976; and to provide for matters connected therewith. 

Read moreComment: Property Practitioners Bill

B-BBEE Exempted Micro Enterprise – Sworn Affidavit

An Exempted Micro-Enterprise, “EME” is only required to submit an affidavit confirming an annual turnover of less than R2.5 million. EMEs automatically gain Level 4 BBBEE status. If there is 51% black ownership, they are given Level 2 status, while EMEs with 100% black ownership immediately gain Level 1 status.  Affidavits are valid for a period of one year, and then need to be re-done.

Below, please find a template that can be used in this regard.
EME B-BBEE Affidavit_Property Template

 

2016- 2017 Scorecard Certificate Collection

The Property Sector Charter Council (PSCC) office is embarking on a reporting process as required by law.

Both the BBBEE Act notice 112 of 2007 (Gov Gazette 29617) clause no. 5.4.2.2 and the constitution of PSCC compels and imposes the executive authority and responsibility on the PSCC to “compile annual reports on the state of BBBEE within the Property Sector based in relation to the transformational objectives set out in the Sector Code”. Pursuant to this, the PSCC will therefore collect and capture all scorecard data from Sampled Property Measured Entities for the period between 2016-2017.  

Read more2016- 2017 Scorecard Certificate Collection

REBOSA: FIC RMCP Template and Memorandum

Attention: Principals / Business Owners

We have received numerous enquiries in respect of the new guidelines from the FIC and many agents are concerned about the implementation dates and deadlines etc.

We have spent considerable time and money to consult with our attorney’s, Cliffe Dekker Hofmeyr and below you will find an executive summary as well as a pro forma Risk Management and Compliance Programme (“RMCP”) for your attention.  This is for your use and you can insert your agency’s name where applicable.

However, there is no final implementation date as yet.

It is the responsibility of the EAAB and, failing them, the FIC to set a date for the implementation of these new guidelines and until that happens you are under no obligation. It obviously serves a purpose to study the documents and get your systems in place so that you can implement same.

One of the rumours we have to address regularly is when and in respect of whom Customer Due Diligence (CDD) (or previously Know Your Client – KYC) must be done.  Client identification and verification only needs to happen before the receipt of value (money).  Therefore, CDD is not relevant and does not need to occur when taking a mandate or taking a buyer to a property. See paragraph 4.10 of the Executive Summary.

I would like to reiterate that it will serve you well to study the document in detail and familiarise yourself with the acronyms, as it will assist you going forward and will put your mind at ease.  It seems daunting but it is not.

We are planning a series of member meetings to supply training and further information once we manage to obtain a response from the EAAB as far as implementation is concerned.

Please also visit our website, where we have published documentation, organograms and step by step guides from the FIC.

Memorandum to REBOSA re – FICA amendments – 20171019

Template RMCP – 20171019