Regulator Quietly Abandons BEE Requirement for Fidelity Fund Certificates

The Property Practitioners Regulatory Authority (PPRA) has reversed its decision to require estate agents and other property practitioners to have a Broad-Based Black Economic Empowerment (B-BBEE) certificate to obtain a fidelity fund certificate (FFC). This decision comes after widespread criticism from industry stakeholders.

Earlier this year, the PPRA announced that all property practitioners would need a valid BEE certificate, scoring at least 40 points (BEE Level 8), to apply for an FFC. This sparked concern, especially as the requirement would have added significant costs for many businesses. Following backlash and legal pressure, the PPRA has now decided not to enforce this requirement.

Lobby group Sakeliga, which had prepared to challenge the policy in court, considers this a win but warns that the fight isn't over. They highlight that while the immediate BEE certificate requirement has been removed, other burdens remain. Even entities that could be exempt still need to obtain a BEE certificate, which could cost up to R10,000 a year.

Sakeliga also raises concerns about broader government strategies to enforce BEE compliance across different sectors, describing this as a "third wave of BEE." They argue that this approach extends beyond companies with state contracts to impact a wider range of businesses, pushing for BEE compliance more aggressively.

The situation is still evolving, and property professionals are advised to stay updated on any further regulatory changes.