Important Update: Fidelity Fund Certificate Renewal and Historical Penalties
Category News
In the ever-evolving landscape of property practice, staying informed about regulatory updates is essential. The Property Practitioners Regulatory Authority (PPRA) has recently announced a significant policy change regarding the renewal of Fidelity Fund Certificates (FFCs) and the associated penalties for non-compliance.
Mandatory Notification for Ceasing Operations
Regulation 15.4 of the Property Practitioners Act mandates that property practitioners who intend to stop working must formally notify the PPRA of their decision not to renew their FFCs in writing. According to Regulation 15.4:
"Every property practitioner to whom a fidelity fund certificate or registration certificate, as the case may be, has already been issued in respect of a specific calendar year, shall, unless he/she has ceased or will cease before the end of that year to operate as a property practitioner and has advised the Authority of such fact in writing, by not later than 31 October of that year, apply to the Authority for the issue to him/her of a fidelity fund certificate."
Historical Penalties and Policy Change
In the past, property practitioners who failed to comply with this regulation faced penalties when re-registering after a period of absence, regardless of their activity within the industry during that time. This strict enforcement often led to complications for practitioners who had not been working but had not formally notified the PPRA.
After extensive deliberation with stakeholders, the PPRA has decided to stop penalising practitioners who were not engaged in property activities during their period of non-renewal. This policy change is effective from 20 June 2024.
Re-Registration Requirements
Property practitioners who wish to re-register and apply for an FFC after a period of absence must complete an affidavit confirming their non-involvement in the industry during their leave of absence and provide supporting documentation to the satisfaction of the PPRA. Practitioners who continued to work without renewing their FFCs will still be subject to the legislated penalties.
Key Deadlines and Compliance
It is crucial for all property practitioners to renew their FFCs by the specified deadline of 31 October each year if they are actively practising. Failure to do so will result in penalties, as outlined in the regulations. This new policy will not operate retrospectively and will apply from the implementation date going forward.
Future Implications
This decision aligns with the PPRA's mandate to streamline the renewal process and ensure compliance with regulatory requirements. The PPRA reserves the right to review and revise this decision in accordance with applicable legislation if necessary.
Staying updated with these changes will help property practitioners navigate their professional responsibilities more efficiently. For any further clarifications or assistance, practitioners are encouraged to contact the PPRA directly.
Stay informed, stay compliant, and ensure a smooth renewal process for your Fidelity Fund Certificates.
Author: Maxprop