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Attention Property Sector Professionals: Understanding FFC and B-BBEE Compliance

As many of you may have recently learned, obtaining a valid Fidelity Fund Certificate (FFC) now entails meeting certain criteria. It appears that securing a compliant B-BBEE certificate is a prerequisite for this process. Moreover, if your revenue exceeds R 2.5 million, navigating through a B-BBEE audit is imperative. In this blog post, we’ll delve into the intricacies of these requirements and their implications.

Key Points to Consider

Here’s a breakdown of what you need to know:

  • FFC Requirements: To secure a valid FFC, achieving a compliant B-BBEE certificate is now essential. If your revenue exceeds R 2.5 million, undergoing a B-BBEE audit is mandatory.
  • Property Sector Charter (PSC) Scope: The PSC encompasses various segments of the property value chain, including property development, ownership, services, professionals, regulators, and organs of state.
  • Compliance Thresholds: If your revenue falls between R 2.5 million and R 35 million, adherence to the Qualifying Small Enterprise Scorecard is necessary.
  • Scorecard Points: Achieving more than 40 points on the scorecard is crucial, with ownership qualification as “Black” playing a significant role. Non-Black ownership entities must attain 55 points to qualify for a level 7 status before any level discount.

Ancillary Legislation Compliance:

  1. Employment Equity Act (EEA): Entities operating as estate agents must report if employing more than 50 people or generating revenue exceeding R30 million. Submission based on the EE Plan is required annually between September and January.
  2. Workplace Skills Plan (WSP) & Annual Training Report (ATR): Employers with remuneration exceeding R500,000 for all employees in the next 12 months must submit a WSP & ATR by April 30 each year.

Next Steps:

Reach out for a complimentary B-BBEE Gap assessment. Simply quote code PSC007 to get started.

Our Employment Equity specialists are continuously monitoring changes to legislation and keeping clients updated on how this could potentially impact their business.  

~© SiyayaSkillsInstitute

Navigating FFC and B-BBEE compliance doesn’t have to be daunting. Let us guide you through the process.