Transcript Fasset
Complying with Changes in Legislation October 2009 Agenda • FICA • Consumer Protection Act • Companies Act • King III • IFRS for SME’s • National Credit Act • Close Corporation Act • FAIS • Tax Practitioners Bill • IFRS FICA Money laundering Legislation POCA Defines: Money laundering offence FICA Reporting obligation Definition • Concealing • Disguising • • • • • Nature Source Location Disposition Movement • Proceeds of unlawful activities Financial Intelligence Centre Not a law enforcement agency or investigative body FIC IRBA, Registrar of Companies, Estate agents board SARB Supervisory Bodies Law Enforcement Agencies Reporting Institutions General business Attorneys, Estate agents, Banks, Insurance broker Accountable Institutions Collect Process Analyse Reporting obligations Any person who: And who knows or suspects that: Carries on a business Business has received proceeds of unlawful activities Is in charge of a business Transaction may relate to money laundering Manages a business Party to a transaction Is employed by a business Report to FIC Duties of Accountable Institutions Above prescribed limit Cash transactions Also Reportable Institution Details of transfer After transfer Electronic transfers Conveyance of cash Report on demand Administrative duties for accountable institutions Identify clients Compliance officer Training Keep records 5 years Internal rules Directives Directive Cost borne by institution FIC Provide information Cease to engage Only after consulting with Centre Supervisory Body Remedy noncompliance Meet obligations Accountable institutions, reportable institutions, other persons Registration of Institutions Accountable institutions Reportable Institutions Register with FIC FIC to maintain register Notify FIC of any changes within 90 days Responsibility of supervisory body Administrative sanctions: Report on compliance Not to repeat conduct Report any action taken against accountable institution Issue or amend license, registration Fit and proper test Reprimand Remedial action Restriction or suspension Penalty: Individual: R 10 mil Company : R 50 mil Process to be followed May appeal Appointment of inspectors Head of supervisory body Issue certificate of appointment Appoint Inspector Enter and inspect premises Question persons No warrant is necessary Must consult with Centre Open strong room/safe Institution liable for any costs involved Copy/seize document Compliance and enforcement All offences Sec 55, 61A, 62, 62A, 62B, 62D Imprisonment 15 years Imprisonment 5 years R 100 mil R 10 mil Consumer Protection Act Background • Signed into law by president on 30 April 2009 • Two year implementation period Repeal and replacement of current laws Consumers Affairs (Unfair Business Practices) Act, 1988 Trade Practices Act, 1976 Sales and Services Matters Act, 1964 Business Names Act, 1960 Price Control Act, 1964 Sections 2 to 13 and sections 16 to 17 of Merchandise Marks Act Section 54 of Lotteries Act. 1997 Scope of the Act Transactions in ordinary course of business Between parties within the Republic Promotion of goods and services Goods and services themselves after the transaction is completed Includes franchise transactions By profit business, or by non-profit entity, the State or entities contracted by the State and Public Private Partnerships Excluded transactions What is excluded? • Large transactions between State and large businesses • Value of the transaction > threshold (possibly R 500 000) • Credit agreements under NCA • Services supplied under employment contract Clause 60 and 61 deals with unsafe goods • Apply to all goods introduced to the market, even when exempt Other exemptions • Minister may grant industry-wide exemptions Meaning of transaction Interaction or agreement to interact between a consumer and a supplier Exchange of consideration Supply of goods and services to or at the direction of the consumer Meaning of goods Meaning of goods Anything marketed for human consumption Tangible, intangible e.g. music, photograph, literature, software codes, licenses Legal interest in land Any other immovable property e.g. usufructs Gas Water Electricity Meaning of service Accommodation e.g. restaurant or hotel Work or undertaking Entertainment e.g. sale of tickets Banking and financial service Provision of: Access to any electronic communications infrastructures e.g. cell phones, 3G Access to event, premises, activity or facility Rights of a franchise Transportation Right of occupancy in land or other immovable property Education, information, advice or consultation (excluding FAIS) Right to equal access to consumer market No unfair discrimination Excluded Sales of alcohol to under-aged minors Access to goods or services Different quality or pricing Discounted prices for children, persons over a certain age Separate use of facilities for different genders Right to privacy Consumer’s right to: Accept, refuse or block any approach for the purposes of direct marketing Formal demands to discontinue marketing approach Pre-emptively blocking of direct marketing Minister to: Establish an “Exclusion Register” Prescribe certain days, dates and times during which it is prohibited to contact consumers Consumer’s right to choose No bundled goods or services Unless bundling results in economic benefit Right to cancel a fixed term agreement Fixed term contracts Limit rights to impose cancellation charges 20 Business days notice for any contract Repairs, maintenance or replacement services Provide consumer with an estimate Consumer to authorise Upfront disclosure for preparing an estimate Any costs above original estimate to be authorised by consumer Consumer’s right to choose Unsolicited goods • No obligation to pay • Return to supplier at his risk/expense Cooling off period 5 business days Examine goods • Return if not the same as sample/description • May charge deposits • Penalties Must be reasonable Cancel advance reservations or bookings Right to disclosure and information Person with average literacy skills and minimal experience must understand: Disclosure requirements Notice or document Content, significance and importance of notice or document Terms and conditions to make informed choices Compulsory to display prices for goods If two prices are displayed, the lowest has to be charged Trade descriptions must not be misleading or tampered with Wear identification Disclose fact if: • reconditioned • grey market goods Right to fair and responsible marketing Prohibition against marketing that is misleading, fraudulent or deceptive Following are prohibited Bait marketing Negative options Referral selling Offering of prices with intention of not providing them Informing consumers that they have won a prize when no competition has been conducted Making prize subject to payment of consideration Consumers to be: • Provided with identity of agents • Informed about right to rescind the agreement during cooling off period Right to honest and fair dealing Prohibited: Unconscionable conduct, force, coercion, undue influence, pressure or harassment, unfair tactics Making false, misleading or deceptive representations Overselling and overbooking Refund in full with interest Claim contractual and consequential damages, including economic losses Right to assume that the supplier has legal right to property The supplier is liable to third party if third party has legal right over property Does not apply to used goods or immovable property Right to fair, just and reasonable terms Right to fair value, good quality and safety Goods to be in working order, free of defects, useable and durable for a reasonable period of time Provisions that seek to limit suppliers liability must be brought to attention of the consumer Safeguard the safety of consumers Establish regime of product liability Rights of consumers to receive goods that are: Of good quality Free from defects Reasonably suitable for the intended purpose Right to fair, just and reasonable terms Obligation of suppliers: To issue alerts of any activity that is subject to hazard Implied warranty on quality: Provide notice or instructions of safe handling, how to inhibit any risk, remedy or mitigate the effects Six months on repair, replace or refund Provide for safe disposal of goods Further three months replace or refund requirements Accept the return of waste goods Liable for harm caused as consequence of product defect or failure Supplier’s accountability to consumers Pre-paid certificates, credits and vouchers Remain negotiable for 5 years Supplier obliged to honour them Minimum period is three years Treated as pre-paid income until redeemed Companies Act The Process so far Short term • Amendment Act • Promulgated 17 April 2007 Long term • • • • Expected implementation Draft Bill First released September 2006 Re-released Assented April 2009 Regulations outstanding • 2010 Categories of Companies Companies Gain vs Public Benefit Profit Not stateowned PFMA definition Non-profit Stateowned MOI Private company Personal liability company Public company Stateowned company Non-profit company Name (Pty) Ltd Inc. Ltd SOC Ltd NPC Company formation Minimum requirements, Maximum flexibility • Single Memorandum of Incorporation • Deal with issues not in the Act • Unalterable and alterable provisions • Default rules that may (or must!) be changed • Overrides shareholders’ agreement • 2-years grace period • Company names • Minimal restriction • Can be a number Names of Companies Prohibited: Suffixes Other • Similar to another company, business or person • Falsely implying associations • Propaganda of war, hate speech, violence, etc • If number used: • “(South Africa)” • If MOI contains special conditions: • “(RF)” • Personal liability • “Incorporated” or “Inc.” • Private • “Proprietary Limited” or “(Pty) Ltd” • Public • “Limited” or “Ltd” • State-owned • “SOC Ltd” • Non-profit • “NPC” • Any letters, words and some symbols • Name reservation – valid 6 months, with 60 day extensions • Anti-abuse provisions Financial Statements Financial statements (including AFS) must not be • False or misleading in any material respect; or • Incomplete in any material particular; and • Comply with financial reporting standards “if any such standards are prescribed” Present fairly Show five elements and other information Minister may prescribe standards • “consistent with IFRS” Audit Requirement Non-Profit Companies • Independent Review Public Companies • Audit Personal Liability Companies • Independent Review Private Companies (Other) • Independent Review Private Companies (Closely Held) • Voluntary Auditors Rotation after five years • All companies • Two year break Entitled to attend AGM Other services if allowed by: • IRBA • Audit committee Minimum Directors Non-Profit Companies • Three Public Companies • Three Personal Liability Companies • One Private Companies (Other) • One Private Companies (Closely Held) • One Directors Remuneration • Special Resolution • Within previous two years Disqualified if: • • • • • Juristic person Disqualification ends automatically after five years Minor or legal disability Not disqualified if all shares Unrehabilitated insolvent held by: Previously removed for dishonesty • That director, Imprisoned without option of a fine or for dishonesty • Related persons } Directors Duties • • • • Fiduciary Reasonable care Avoid conflicts of interest Disclose financial interests Personal liability if • • • • Acting without authority; Insolvent, reckless, negligent or fraudulent business; Signing an untrue statement; Failing to vote when • Issuing unauthorised shares; • Granting unauthorised options; • Granting financial assistance to directors or others not in accordance with requirements; • Purchasing shares against the legislative requirements; • Allotments of shares against requirements Common law duties vs statutory duties New act has codified the common law duties Statute • Act in the best interests of the company • Carry out duties with good faith • Exercise care, skill and diligence • Acting within their powers • Promote the success of the company through independent judgment. Common law • Ensuring the proper administration of the company’s affairs • The preparation of financial statements • The appointment of auditors and other such corporate activities Non-compliance with statutory duties is an offence. Both the company and the director will be liable to prosecution. Section 76 Director Alternate director Officer Member of committee Reasonable man test • Exercise a degree of care, skill and diligence that would be exercised by a reasonably diligent individual performing same function • Prohibited from using position to gain an advantage or to knowingly cause harm to the company • To act honestly, in good faith, and in the best interest of, and for the benefit of, the company Director's judgment "reasonable" if he: Has taken reasonably diligent steps to become informed about the matter at hand; Has no material personal financial interest in such subject matter; and Indicates judgment of a reasonable individual in a similar position. Section 76 Duty to disclose When What Unless reason to believe • Earliest practicable opportunity • Any information that comes to his attention • Immaterial to company • Generally available to public • Known to other directors • Legally or ethically not allowed “Business Judgment Rule” Section 76(4) Provide protection for directors In good faith Use experts For proper purpose Who make business judgments Acted on an informed basis Without personal interest Have rational belief that decision is in best interest of company All the requirements must be met Reasonable and responsible Section 75 Interest in contracts • Must not use position to make a secret profit or gain an advantage • Act in the best interest of the company • Must not influence a decision in which the director has a conflicting personal financial interest. • Must disclose interest in advance • Delivering a notice in writing • Setting out the nature and extent of that interest. • Must leave meeting – not entitled to vote on the matter. • Transaction not void if approved or ratified by ordinary resolution Does not apply if: Decision affects all directors or only one director who is also shareholder Other Actions: Liability Taking part in a meeting (formal or informal) and failed to vote against following Conduct does not need to be fraudulent or carried out with gross negligence (§218) In contravention of Act or MOI Issuing of unauthorised shares or options Liable for loss or damages suffered Issuing of authorised securities without shareholders approval Provision of financial assistance to any person in the acquisition of securities Provision of financial assistance to a director Approving a distribution Acquisition of company of its shares or shares of holding company Other liabilities Section 20(6) Who? What? Why? How? • Each shareholder Unless ratified by shareholders • Claim for damages • Causes company to do anything inconsistent with the Act, or limiting §20 • Fraudulently or due to gross negligence Threat of class action – Exercised by a person acting as a member of a group, or class of affected people (section 157) Threat of derivative action Personal liability Relying on information Directors are entitled to rely on information provided by: • employees of the company • legal counsel • accountants • other professional persons • a Committee of the Board Exclusion of duties Any provision void that is in Agreement MOI Rules of company Resolution adopted Directly or indirectly Relieve a director of: duty liability limit, negate or restrict any legal consequences Arising from act or omission that constitutes willful misconduct or breach of trust Indemnification Advance expenses to defend litigation Indemnify directly or indirectly for litigation expenses Only if Proceedings are subsequently abandoned Director not found liable Indemnification The court can: • Relieve the director of the liability If it appears to the court that • The director acted honestly and reasonably Other than for: • Gross negligence • Wilful misconduct • Wilful breach of trust Audit Committee Compulsory for At least three members • Public Companies and • State Owned Companies • All nonexecutive • All independent Duties • Nominate the auditor • Determine audit fees • Pre-approve non-audit services • Prepare a report for AFS Shareholders meetings Minimum notice • • • • Public Company: 15 days One shareholder: no notice Other: 10 days May be extended by MOI May be done electronically Default quorum: • 25% of votes AND • Three shareholders Resolutions • Special: 75% but MOI may specify less • Ordinary: 50% but MOI may specify more • Margin of 10% Annual General Meeting Frequency • Once a year • Not more than 15 months after previous AGM Minimum business • • • • • • Present directors’ report Present auditors’ report Present audit committee report Elect directors Appoint auditor Appoint audit committee Notice • Same period as other shareholders’ meetings • Include financial statements Solvency and liquidity test Considering reasonably foreseeable circumstances: • Assets fairly valued equal or exceed liabilities fairly valued; and • Able to pay debts as due for 12 months after consideration of test • Able to pay debts as due for 12 months following distribution Include contingent assets and liabilities Financial Assistance allowed if: Employee share scheme OR By special resolution (within 2 prior years) AND Solvent and liquid after transaction AND Terms fair and reasonable to company King 3 Need for King 3 Expectation Globally Court and conduct Scope of affairs Local communities Environmental constraints Labour practices Human rights issues Legal duties Corporate failures Structure of report 9 chapters Principle based Apply or explain Provide reasons for not complying Chapters Chapter Topic Chapter 1 Ethical leadership and corporate citizenship Chapter 2 Board and directors Chapter 3 Audit committees Chapter 4 The governance of risk Chapter 5 The governance of IT Chapter 6 Compliance with laws, rules, codes and standards Chapter 7 Internal audit Chapter 8 Governing stakeholder relationships Chapter9 Integrated reporting and disclosure Application of code All entities Reputation 74% employees – first hand knowledge of wrongdoing 46% - cause significant loss of public interest The Board • Board to appoint • Board entitled to remove without shareholder approval Assess independence after 9 years • Majority independent • 1/3 to rotate annually (Public only) • Listed companies • June 2009 CEO/MD Nonexecutive FD Reappointed annually Chairman • Separate from CEO • Independent non-executive Duties of chairman Mentor new directors Meet with individual directors annually Committee involvement Member but not chair Meet CEO before board meetings •Nominations committee •Risk committee May not be a member of audit committee. Secretary Appointed and removed by Board Not a director of the company Source of guidance Agendas and minutes Public and stateowned Specific duties set out in new Companies Act Duties of directors Responsible to shareholders Integrity of financial reporting Internal controls Ethics Levels of materiality defined IT Risk Management Risk management Sustainability Duties of directors Care Skill Personal Liability Entitled to independent professional advice Commence business rescue proceedings in time Manage conflict of interest Diligence Best interest of company Act in good faith Training and appraisals Training • Formal process • CPD • Annually Appraisals • Committees and directors Reviewed by nominations committee Directors subjects to evaluation before reappointed Compliance with laws and regulations Each individual director should be aware Regulations Effective compliance framework and process Standing item on agenda Culture of compliance Key performance indicators Laws Head of compliance must be experienced Board to delegate responsibility to management Industry requirements Committees Remuneration Nominations Chairmanindependent nonexecutive Risk Entitled to independent professional advice at cost of company Consist of majority of non-executive independent directors Other directors may attend meetings Not entitled to vote Remuneration of directors Remuneration committee set policies • Agreed by shareholders Mix between fixed and variable • Bonuses must be performance related • No obligation for termination bonuses Shareholders to approve non-executive fees in advance • No share options • Base fee plus attendance fee per meeting Detailed analyses in annual report of individual directors plus three highly paid employees Audit committees Oversee audit Board to elect chairman Review financial statements Elected by shareholders Deal with complaints Independence of internal and external auditors Listed – Auditor approved by JSE Public State-owned Financially literate Fees, terms of engagement, other services by auditors Reportable irregularities Meet twice a year and annually with internal and external auditors 3 Members Independent non-executive Chairman to attend AGM Internal audit Report to audit committee Competent, independent team Risk based approach Technical and business skills Written assessment of the effectiveness of internal control Governance of IT Permanent point on agenda Responsibility of the Board Receive independent assurance on the effectiveness of IT controls Delegate responsibility for implementation to management A CIO must be appointed Monitor and evaluate IT investment and expenditure Integrated sustainability reporting Increase trust and confidence Economic, social, environmental Going concern Commentary on financial results Directors Report Once a year Reason for ceasing to be in office Names and attendance at meetings Age and length of service List of other directorships Managing stakeholder relationships Resolve disputes ADR Clause in contract Formal process Expeditiously, effectively, efficiently Mediation IFRS for SME’s IFRS for SME’s 3000 pages vs 230 pages Withdrew GAAP for SME’s Approved on 13 August 2009 by APB Fair presentation framework Audit report: IFRS for SME’s Financial periods ending after 31 August 2010 Use by SME’s Stand alone framework Tested by 100 companies in 20 countries F/s authorised for issue after 13 August 2009 ED 257 – 76 pages – For more information refer to SAICA Website IFRS for SME’s 35 sections and a glossary Updated once every 2 years The draft IFRS for SME’s Implementation guidance Organised topically Published in 3 documents Focus on entity with 50 employees Basis of conclusions What is a SME? No public accountability No shares traded in public market No fiduciary capacity General purpose statements for external users Owners not involved in management Creditors Credit rating agencies Application Financial year-ends prior to effective date of Companies Act Public or private company Limited interest or widely held with no public accountability Companies Act, 1973 Corporate Laws Amendment Act, 2006 Application Financial year-ends after effective date of Companies Act Non-profit company Private company Personal liability company Public with no public accountability Companies where founding statement or other regulation require “fair presentation framework” Companies Act, 2008 Consolidated financial statements Non – compliance Parent • Parent is a subsidiary and; Modified audit report Parent/ Subsidiary Subsidiary No need to consolidate if: Subsidiary • Ultimate parent consolidates i.t.o. full IFRS Subsidiary Consolidate all subsidiaries of parent Simplifications Topics omitted Not relevant to SME’s Using plain English Simplified redrafting Limited disclosures Options removed Recognition and measurement Accounting policies Simplified Omitted topics Earnings per share Assets held for sale Interim financial reporting Segment reporting Insurance contracts Extractive industries Options removed Simpler option in IFRS for SME’s Financial instruments Investment property Property plant and equipment Intangible assets Government grants Joint ventures Revaluation Available for sale Not permitted to use other option in Full IFRS’s Proportionate consolidation Recognition and measurement Amortise over estimated useful life or max of10 years No option to revalue Goodwill Historic cost option No annual review of residual value, useful life Investments in associates/ Joint ventures Review if indication of change PPE & Intangible assets •No classification as held for sale Impairment testing only if impairment is indicated R&D & Borrowing costs Expense both Cost or fair value through P/L if FV is quoted price Recognition and measurement Leases No straight-line method if payments structured to compensate inflation Simplified as per new IAS12 Income taxes Financial instruments Only “fair value through P/L or amortised costs available Held to maturity and available for sale not prescribed Use F/V if it is available otherwise use costdepreciation-impairment Agriculture National Credit Act Key features • Quotes binding for 5 days • Advertise cost of credit • Limit on credit sales at home or work • Reckless lending is prohibited • Interest and fees are regulated • Right to free credit bureau records • Right to debt counselling Statutory bodies • Register credit providers, credit bureau's, debt councilors • Educate • Create awareness • Monitor credit market • Receive and investigate complaints • Enforces the Act NCT • • • • Independent NCR Hears cases Issue fines Provide redress Consumers and credit providers can appeal to NCT Consumer Rights Apply for credit Not to be discriminated against when applying for credit To be given reasons for credit being declined To be given documents in an official language that the consumer understands To be given documents in a clearly understandable language To be given written documentation relating to the credit transaction To confidentiality of personal information To access and challenge information held by a credit bureau To receive periodic statements Registration requirements Credit providers No natural persons Credit bureaus > 100 credit agreements (Excl incidental) Principle debt > R 500 000 Registration fees Renewal fees Duties of NCR Certificate of registration Enter in register Fit and proper Counsellors No juristic person Assign unique registration number Types of agreements • Pawn transaction • Up to R 15 000 • Excluding mortgage Small Intermediate • Between R 15 001 and R 250 000 • Excluding a pawn transaction and mortgage • More than R 250 000 • Mortgage Large Included transactions Loans and other credit from banks Mortgages Overdrafts Credit cards Vehicle and personal finance Credit from retailers Furniture finance Clothing accounts Other Micro loans Pawn transactions Excluded transactions Where the consumer is a juristic person Assets or turnover Large agreements State or organ of State > R 1 000 000 Where credit provider is: Reserve bank Outside the Republic Provider of utility Other Insurance policies Lease of immovable property Stokvel Unlawful and Reckless Agreements Unlawful Credit provider Cannot sue Must refund: • monies paid • Interest per quote Minors Reckless credit No risk assessment Mentally unfit Under administration Assessment indicates consumer can’t afford Negative option marketing Unregistered providers Consumer rights not understood Pre-agreement statements Principle debt Terms and conditions Interest rate Prescribed forms for all agreements Pre agreement and quote Total amount payable Valid for 5 days Installments Fees, charges, interest Cost of Credit Interest and initiation fees As per court tariffs Collection costs Service fees For monthly and annual, transactions May not exceed outstanding obligation Limited to cost of letter Administration charge Insurance Cover reduce with decrease in outstanding balance Right to receive statements Installment Lease Secured One a month Every two months Maximum = 3 months Mortgage = 6 months Changes, termination, early payments Changes Termination Reduce debt Paying settlement amount Sign initials No penalty fee for small/intermediate agreement In writing Large agreement Penalty = 3 months interest Early payments May not be refused by credit provider First to interest, then charges, then outstanding balance Surrender of goods, debt enforcement Surrender of goods Can return at any time Sell and credit account Proceeds less than debt 10 days to pay Debt enforcement Not allowed to retain: ID Debit or credit card ATM card Pin number Notify in writing Refer to debt councilor Consumer to reply within 10 days Compliance and Reporting Compliance report Annual financial statements Assurance report Statistical return > R 15 mil – Quarterly < R 15 mil – 15th February 6 months after year end Close Corporations Close Corporations Act, 1984 Companies Act was amended to include CCs Indefinite continued existence No new CCs will be formed May convert to companies Deregistration circumstances Remove from register Court to wind up solvent corporation Illegal Failed to comply with compliance notice Failed to file annual return for 2 years Fine or conviction previous 5 years Inactive for 7 years No assets and prospect of liquidation Members resigned/removed Declared delinquent Member still liable Effect of deregistration Apply to Commission Trust property Re-instate Transfer assets to corporation Company and interested person Joint benefit State For 5 years thereafter forfeited to state FAIS Purpose of Act • Formal system of regulating financial advisors • Aggrieved consumers to seek redress • Enhance integrity of the South African financial services industry Definition of advice Advice is: Advice is not: Recommendation Guidance Proposal Factual advice Client Group of clients Analysis without recommendation Activities outside scope of FAIS Share transfers Trustee Consulting Valuations Business structures Maximum tax deductions Excess funds Life cover Safe custody Activities inside scope of FAIS Funds for share transaction Diversifying or change of portfolios Control and investing funds Advice to invest excess funds Selling of financial products What is FSP? Duties Display certified copy of license in prominent place Excluding a representative Furnish advice Any person Renders intermediary services Include reference to license in all documentation Advise registrar of lapsing of license •Permanent incapable of carrying on business •Sequestrated •Dies •Liquidated •Business is dormant Appoint compliance officer Representatives May only Act if: Maintain register of representatives Remove when representative no longer complies with requirements Inform registrar in writing within 30 days FSP must: There is a contract with FSP FSP accepts responsibility Requirements for registration Not unrehabilitated insolvent or under liquidation Honesty and integrity Tangible assets > Financial than liabilities soundness Not been found guilty for fraud, dishonesty etc for 5 years Competence Experience requirements Academic qualifications Fixed business address Operational ability Adequate: Communication facilities Storage Separate bank- and trust accounts New “Fit and Proper” requirements RE 1 and RE 2 From 31 December 2008 RE 1: FAIS and FICA 15 – 60 hours RE 2: Specific product knowledge Regulatory exam CPD Educational Training facilitators to apply for accreditation Log CPD on the on-line CPD register Keep records for 5 years New entrants – from 1 January 2010 Matric – Obtain full qualification within 5 years Render services under supervision List of qualifications provided by FSB Accounting and audit Audited Financial statements All FSP’s Monthly accounting records Submitted within 6 months of year-end Trust account Irregularities reported Reasons for termination as auditor Draft Regulation of Tax Practitioners Bill Application of Act Applicable to Every individual required to be registered Auditors registered with IRBA Attorney, notary, conveyancer Not applicable to: Advocate Member of other statutory bodies Registration Do not register Register Provide advice Complete and submit returns No consideration Incidental On behalf of employer Under supervision of another tax practitioner Approval of application Board must approve if: Will not approve if: Necessary qualifications Comply with Code of Conduct Is fit and proper person Ordinarily resident in Republic Not disqualified from registration Meet all other requirements of Board Board to enter name in register and to issue certificate Removed from office of trust Convicted for fraud, theft etc. Unrehabilitated insolvent Declared by court as unsound of mind or unable to manage own affairs Disqualified from registration in terms of Act Duties of tax practitioners May not If requested must provide details within 14 days Employ any person who was suspended from practice or name was removed from the register Engage in practice if: Fee to Board has not been paid in full Must Suspended from practice Sign anything if work has not been done Delay in accounting for money from client Disciplinary practices Board to investigating committee Court to refer to Board Investigating committee to registered tax practitioner Cannot question unless informed of following rights: Has the right to be assisted or represented by another person; and Is not obliged to make any statement and that any statement made may be used in evidence against that tax practitioner. IFRS IFRS List of new/revised financial reporting standards and their effective dates are in course material ED/2009/11 • Improvements to IFRS • Comments to be received by 24 November 2009 Thank You Fasset Call Centre 086 101 0001 www.fasset.org.za