LEGISLATIVE AMENDMENT AND DEVELOPMENT NEWSLETTER - FEBRUARY 2022

This newsletter highlights the latest statutory amendments, enactments, caselaw, notices and ancillary developments relevant to the SERR Synergy products and services for the month. 

Property Practitioners Act, 2019 (Act No. 22 of 2019):

The Property Practitioners Act, 2019 (Act No. 22 of 2019) (“the Act”) will come into operation on 01 February 2022 as published in Government Gazette No. 45735 Proclamation dated 14 January 2022. 

Section 50(a)(x) of the Act is of importance because it stipulates that a practitioner who “is not in possession of a valid BEE certificate” would be disqualified from being issued a Fidelity Fund Certificate (FFC). 

Any practitioner who operates without a valid FFC is guilty of an offence. The requirement regarding a BEE certificate is vague and ambiguous. Firstly, it does not state what the position is with regard to entities which are not permitted to be issued with BEE certificates and are compelled to use affidavits. Secondly, it does not stipulate the required B-BBEE compliance level. A non-compliant certificate is in fact also a “valid BEE certificate”. 

Considering the ambitious transformation objectives of the Act (section 2) as well as those proffered in the Regulations, 2022 to the Act, expectations are that fairly strict BEE compliance requirements will be set shortly after the Act comes into operation. In a bid to pursue these transformation objectives, a percentage black ownership or at least a level 4 recognition level is contemplated. 

We have published a blog in 2021 which provides further details regarding the above: What are the Property Practitioner’s Broad-Based Black Economic Empowerment (B-BBEE) compliance requirements in terms of the new Property Practitioners Act?

The Department of Higher Education and Training, in Government Gazette No. 45649 dated 17 December 2021, published the National Policy for the Conduct, Administration and Management of the Examinations of Colleges established, declared or registered in terms of the Continuing Education and Training Act, 2006 (Act No. 16 of 2006).

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