Following the amendment of the Property Practitioners Act in South Africa, making it compulsory for Property Practitioners to have a valid BEE Certificate before they can renew their Fidelity Fund Certificate (FFC) going forward (read the first announcement here).
Through further communication with relevant parties, our team can now confirm that the Property Practitioners Regulatory Authority (PPRA) recently clarified that a valid B-BBEE certificate does not equal a compliant B-BBEE certificate.
Simply put, this clarification means that Property Practitioners only need to undergo a formal B-BBEE verification – and the result need not be a B-BBEE compliant (≥40 points) in order to obtain their FFC in the future. Thus, Property Practitioners will be able to apply for the FFC with a non-compliant B-BBEE certificate (<40 points). Remember, obtaining levels 1-8 after verification is regarded as “compliant”.
Does this put the matter to bed?
While the clarification provided by the PPRA can cause a big sigh of relief among Property Practitioners, it is important to remember that there will still be costs and administrative work required for a valid B-BBEE verification in order to produce a SANAS-accredited valid B-BBEE certificate.
But the larger issue at hand relates to the long-term implications of the amendment to the Act. While a valid B-BBEE certificate will suffice in the short term, it is important to think about the long-term plan – and B-BBEE compliance may well still be a requirement on the horizon.
Looking ahead – what may come next from this matter?
It is important to start planning now for long-term readiness and what is yet to come from this legislation in the future. It would serve Property Practitioners well to be prepared with a B-BBEE strategy right now – we recommend starting with Skills Development. Implementing the requirements for the Skills Development Element of the B-BBEE scorecard embodies the spirit of transformation and works toward uplifting the industry. Property Practitioners will benefit by growing the skills pool of their own industry, creating jobs, raising the level of skilled professionals available to recruit, and playing their part in transformation – with the added benefit of boosted B-BBEE compliance when the time comes that it is required.
At Baartman & Du Plessis Attorneys we are committed to providing our clients with advice that presents practical benefits beyond compliance. Get in touch with our team for more information and professional advice regarding B-BBEE compliance, verification processes, and implementation of B-BBEE scorecard elements.
