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Overall statutory compliance is the responsibility of the Group’s Compliance Division and in conjunction with various internal specialist departments - being Group Legal, Tax, Finance and HR (labour laws).
National Credit Act (NCA)
The NCA applies fully to all credit agreements entered into with consumers from 1 June 2007 onwards. Consumers include entities such as close corporations, companies, trusts and partnerships whose asset value or annual turnover is below R1 Million (except where the credit advanced to any such aforesaid entity in terms of a credit agreement exceeds R250, 000.00).
The objectives of the NCA are broadly the following: to promote a fair, competitive and sustainable credit market; to encourage consumers to make informed choices in respect of obtaining credit; to enforce affordability assessments in respect of all applications for credit; and to protect consumers by providing for a National Credit Regulator, a Consumer Credit Tribunal and a debt counseling process to relieve over-indebtedness.
National Credit Regulator (NCR)
The National Credit Regulator is responsible for the regulation of the South African credit industry. It is tasked with carrying out education, research, policy development, registration of industry participants, investigation of complaints, and ensuring enforcement of the Act.
The Act requires the Regulator to promote the development of an accessible credit market, particularly to address the needs of historically disadvantaged persons, low income persons, and remote, isolated or low density communities.
The NCR is also tasked with the registration of credit providers, credit bureau and debt counsellors; and enforcement of compliance with the Act.
Real People is an accountable institution as defined in the Financial Intelligence Centre Act No. 38 of 2001 (“FICA”) to the extent that it acts as an intermediary for an Assurance Company. Real People’s Group Compliance division has dedicated resources in order to ensure compliance with FAIS and FICA to the necessary extent.
Financial Advisory and Intermediary Services Act (FAIS) - Click here to view
FAIS legislation impacts on the financial services industry and aims to regulate the giving of advice and intermediary services supplied to consumers. All financial services providers are required to be registered with the Financial Services Board (FSB).
FAIS aims to protect consumers of financial services and products, as well the industry and intermediaries. Service providers are required to be trained in order to provide appropriate advice to consumers as well as ascertain their financial needs and to also assist consumers in making informed financial choices.
This Act also provides a structured framework for complaint resolution.
Financial Intelligence Centre Act (FICA)
The regulatory framework of the Financial Intelligence Centre Act requires ‘know your client’, record-keeping and reporting obligations for institutions. It also requires accountable institutions to develop and implement internal rules to facilitate compliance with these obligations.
The Financial Intelligence Centre was established in order to identify the proceeds of unlawful activities and to combat money laundering activities. The Centre aims to meet its objectives by making information collected by it available to investigating authorities (the South African Police Services (SAPS), the National Prosecuting Authority through the Directorate of Special Operations and the Asset Forfeiture Unit), the intelligence services and the South African Revenue Service (SARS). The Financial Intelligence Centre will also exchange information with similar bodies in other countries.
Financial Services Board (FSB)
The Financial Services Board is an independent institution established by statute to oversee the South African Non-Banking Financial Services Industry in the public interest. The FSB is committed to the fair treatment of both users and providers of financial products and services in South Africa.
Debt Collectors Act
This legislation provides for the exercise of control over the occupation of debt collectors as well as legalising the recovery of fees or remuneration by registered debt collectors; and to provide for allied issues in connection with debt collectors.
South African Property Owners Association (SAPOA)
This was established in 1966 by large property investment organisations to bring together all role players in the commercial property field to create a powerful platform for property investors.
It is committed to protecting the interests of the commercial and industrial property sectors. In terms of ownership, management and development, SAPOA's objectives are based on the principles of the free enterprise system. SAPOA's aims and objectives include: fostering key relationships while maintaining government acceptability; maintaining a non-political bias while participating in governmental legislative structures; contributing through excellence in educational programmes and setting quality standards; providing an efficient forum for responding to change.
Further consumer protection legislation is in the pipeline, notably the Consumer Protection Bill. Real People recognises the importance of the Consumer Protection Bill and promotes transparency in charges, fees and interest rates with full disclosure in all contracts.
Promotion of Access to Information Act
The Promotion of Access to Information Act No 2 of 2000 (“PAIA”) was enacted to give effect to the constitutional right of access to any information that is held by another person and that is required for the exercise or protection of any rights as well as to provide for matters connected therewith. PAIA requires a manual to be prepared, regularly updated and published on Real People’s website. It must also be lodged with the Human Rights Commission. The purpose of the manual is to assist potential requesters with the procedure to be followed when requesting access to information from the Real People Group in terms of the Act. The manual is updated annually and is also filed with the Human Rights Commission.
Registrations
The following companies are registered Financial Services Providers:
| Real People (Pty) Ltd | 9945 |
| Real People Assurance Company Limited | 26634 |
| Real People Financial Services (Pty) Ltd | 19113 |
The following companies are registered with the National Credit Regulator (NCR)
| Real People (Pty) Ltd | NCRCP103 |
| Evolution Cashflows Limited | NCR 4625 |
| DMC Debt Management (Pty) Ltd | NCR 4868 |
| Kredimembers (Pty) Ltd | NCR 1637 |
| Real People Factors (Pty) Ltd | NCR 1635 |
| Real People Housing (Pty) Ltd | NCR 1638 |
| Blue Dot Finance Seven (Pty) Ltd | NCR 1732 |
| Entrepreneur Growth Fund (Pty) Ltd | NCR 1730 |
| Evolution credit Management (Pty) Ltd | NCR 5087 |
| Real People Education (Pty) Ltd | NCR 4894 |
| Member Financial Solutions | NCR 1636 |
Real People (Pty) Ltd is a member of the Debt Collectors Council
Real People is a member of the South African Property Owners Association
Risk
Risk management is a process utilized by the Group’s Board of Directors through the Risk Management Committee, management and other personnel. The process is applied in a strategy setting and is designed to identify potential events that may affect the Group and its operations as a whole. The process is designed to manage risk to within the Group’s risk appetite and to provide reasonable assurance regarding the achievement of Group objectives.
The risk management process revolves around a risk register developed and implemented under the auspices of the Risk Management Committee. This register is compiled by all the operating divisions of the Group, signed off by the relevant divisional heads and approved by the Risk Management and Audit Committees of Real People as well as by the Board of Directors.
The risk register is a “living” document and is updated at least once per annum by virtue of a full review process conducted by the Risk Management Committee in conjunction with internal audit and the various operating divisions within the Group. Internal audit uses the risk register as a source of reference when auditing the various operating divisions. The risks identified in the risk register and the degree of impact thereof on the Group are continuously assessed and reviewed at the monthly management committee meetings of the operating divisions.
Liquidity risk is managed by an Asset and Liability Committee (“ALCO”) and the credit risk is managed by a Credit Committee. Both the aforementioned Committees are sub-committees of the Group’s Executive Committee and meet once a month.
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