The Property Practitioners Regulatory Authority (PPRA) says there has been enough consultation on new fidelity fund rules and it will not back down on stricter B-BBEE requirements.

According to a Rapport report, the response by PPRA CEO Thato Ramaili came after the Real Estate Business Owners of SA (Rebosa) expressed surprise at the new rules.

Rebosa’s Jan le Roux said it has always been a requirement for property practitioners to submit a BEE verification certificate.

However, the crux of the dispute is that the new laws also require that this certificate confirms B-BBEE compliance on at least level eight.

Up to now, even non-compliant agencies would have their fidelity fund certificates renewed as long as they submitted a BEE certificate showing they subjected themselves to verification.

Rebosa estimates that up to 2400 of the country’s 6200 estate agencies could fail to renew fidelity fund certificates.

The issue appears to hinge on interpretation of statutes.

The PPRA’s acting chief of compliance, Debra Vial, said during a webinar on the issue that the B-BBEE Act and the Property Practitioners Act both require the submission of BEE certificates.

However, the PPRA understands the laws to also imply compliance.

Vial says if compliance is not implied, it would perverse the aim of the legislation. Sakeliga already indicated that they will approach the courts to challenge the PPRA’s new requirements.

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