Compliance and Risk

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).

Regulatory Environment

National Credit Act (NCA) - Click here to view

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 all applications for credit; and to protect consumers by providing for a National Credit Regulator, a Consumer Credit Tribunal and a debt counselling process to relieve over-indebtedness.

National Credit Regulator (NCR) - Click here to view

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 counselors; 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 have dedicated resources in order to ensure compliance with FAIS and FICA to the extent necessary.

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) - Click here to view

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 (Scorpions) 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) - Click here to view

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.

Life Officers” Association of Southern Africa (LOA) - Click here to view

The LOA is an association of registered long-term insurance companies conducting business in South Africa. The LOA is a forum where member offices can interact to promote their interests and the interests of current and future stakeholders. The association seeks to promote a better understanding of life insurance among the general population of the country, represents the industry and its policyholders in negotiations with the authorities.

Debt Collectors Act -Click here to view

This legislation provides for the exercise of control over the occupation of debt collectors amend 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) - Click here to view

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.

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 -Click here to view

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, published on Real People’s website and must be lodged with the Human Rights Commission. The purpose of the manual is to assist potential requesters as to 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 Assurance Company Limited is a member of the LOA

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 affected by the Group’s Board of Directors through the Risk Management Committee, management and other personnel. The process is applied in 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 of 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.