LEGISLATIVE AMENDMENT AND DEVELOPMENT NEWSLETTER - APRIL 2022

This newsletter highlights the latest statutory amendments, enactments, caselaw, notices and ancillary developments relevant to the SERR Synergy legal compliance products and services, as well as the annual inflation-based (CPIX) increase in monthly/annual premiums.

Financial Sector Conduct Authority

On 28 February 2022, the Financial Sector Conduct Authority (FSCA) published its Draft Strategy for Promoting Transformation in South Africa’s Banking and Finance Sector.

A strategic objective of the FSCA is to promote the development of an innovative, inclusive and sustainable financial system. This includes supporting the transformation of the financial sector.

Interested stakeholders may submit comments on this draft transformation strategy document to fsca.policy@fsca.co.za before 29 April 2022.

Preferential Procurement Regulations

As a result of the Constitutional Court’s judgement in Minister of Finance v Afribusiness NPC (CCT 279/20) [2022] ZACC 4 handed down on 16 February 2022, the National Treasury in Government Gazette No. 46026 dated 10 March 2022, published the Draft Preferential Procurement Regulations, 2022 (the draft Regulations), for public comment. 

The purpose of the draft Regulations is to prescribe—

  • the threshold amounts in which the 80/20 and 90/10 preference point systems must be used, together with the formula to be applied; and
  • other matters necessary or expedient in order to achieve the objects of the Act.

Written comments on the draft Regulations must be submitted by 11 April 2022 to CommentDraftLegislation@treasury.gov.za to be considered.

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Council for the Media, Advertising and Communications Charter 

On 25 March 2022 in an announcement issued by the Presidency, the Council for the Media, Advertising and Communications Charter (MAC) was inaugurated for Broad-Based Black Economic Empowerment (B-BBEE).

The MAC Charter Sector Council is responsible for–

  • overseeing the implementation of the MAC Charter Sector Code;
  • monitoring compliance with the MAC Charter Sector Code;
  • providing guidance on matters relating to BEE in the MAC sector;
  • developing baseline indicators for all the different elements of B-BBEE; and
  • engaging and advising the sector Minister, GCIS and other relevant regulatory entities regarding the MAC Sector Code.

The MAC Council is guided and empowered by the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003), which aims to bring previously disadvantaged individuals into the economic mainstream of South Africa and serves as the Charter’s basis for achieving more equitable income distribution in South Africa with the purpose of correcting historical imbalances.

One of the first duties of the Council is to review and align the 2016 MAC Sector Code based on the new requirements issued by the DTIC in 2019.

The Council is mandated to–

  • review and align the 2016 MAC Sector Code and submit the final document for my approval within 12 months from today;
  • develop and issue a draft Annual Sector Monitoring Report which assesses the state of transformation in the sector, measuring all dimensions of the MAC Sector Code including ownership, management and control, skills development, enterprise supplier development within 12 months from today;
  • be active and, where necessary, provide written inputs and verbal representation on the development of various policies and pieces of legislation by the GCIS and other departments in relation to black economic empowerment; and
  • account to Parliament regarding the state of transformation in the sector.

Consumer Protection Act, 2008 (Act No. 68 of 2008)

The Acting Commissioner of the National Consumer Commission, Thezi Mabuza, in Government Gazette No. 46000 dated 4 March 2022, published the draft amendment of the Goods and Services Industry Code. 

Interested persons/ groups/ associations may submit their comments on the draft guidelines in writing before 4 April 2022 to the National Consumer Commission, P.O. Box 36628, Menlo Park, 0102, for the attention of Mr Jabulani Mbeje, or email said comments to J.Mbeje@thencc.org.za.

Films and Publications Amendment Act, 2019 (Act No. 11 of 2019)

The President of South Africa has proclaimed that the Film and Publications Amendment Act, 2019 commences on 1 March 2022.

Two distinct categories of distributors are created by the Act, namely a commercial online distributor and a non-commercial online distributor. A distributor is a person who conducts the business of distributing films, games or publications and includes a commercial online distributor. A non-commercial online distributor is any person who distributes content using the internet or enables content to be distributed by a user of online services, for personal or private purposes.

In addition, the Act authorises the Film and Publications Board (FPB) with more power to enforce the Act.

SERR Synergy’s Information Compliance Department can assist businesses or entities with a full range of Information Compliance (POPIA and PAIA) service offerings, which include conducting POPIA audits; compilation of Data and Information Protection Reports; drafting of the required Data Privacy policies; updating of agreements to deal with data considerations; advice on internal data-handling requirements; and understanding of the specific data-privacy roles that businesses or entities are required to fulfil.

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