OPERATING CONTEXT

Issuing of new regulations continues, some intended to reduce regulatory burdens

New regulations and proposed changes to current regulations have over time increased the complexity of doing business, which could negatively affect business confidence and reduce capital investment
In 2022, new legislation was introduced by Parliament, which included provisions with a focus on strengthening the methods of mitigating financial crime, altering workplace transformation laws and making it easier to do business. Despite the introduction of these laws, South Africa was still grey-listed by the Financial Action Task Force (FATF)

South Africa’s financial system is being overhauled, with Parliament in the process of introducing various amendments to critical business legislation
Increasing outsourcing of some of the regulatory functions by statutory regulators to the professional bodies will have resource and reputational implications as it would result in SAICA performing a dual role as a member body and a regulator

As emerging technologies drive new business and service models, governments must rapidly create, modify and enforce regulations
ESG will continue to be driving force. Regulatory initiatives will spread around the globe, with a growing focus on social issues (including diversity) as well as environmental imperatives
Adoption and implementation of new/evolved corporate reporting regulations will be a focus

Engagement with regulators and government departments to understand the impact of proposed regulations and changes, provide input, and advocate for members’ interests where necessary
Providing thought leadership and guidance for members on the implications of upcoming regulations and the requirements to ensure compliance
Inviting regulators to present on web-based events with members and facilitate knowledge sessions
Applying a response which seeks to support regulators in their ongoing efforts to regulate effectively and efficiently to protect capital markets and support investment while balancing the requirements of members and the ability of SAICA to support both regulators and members given the current resource capacity and constraints
Presenting to regulators such as the FIC, CIPC and the Masters’ Office to ensure that there is collaboration and that new regulations are fit for purpose for the accountancy profession. SAICA has a social responsibility to collaborate with legislators to ensure that the country is removed from the FATF grey list. This is important given that SAICA members occupy decision-making roles in business and have a role to play in combating money laundering

Developing an Anti-Money Laundering website
Launching a monthly Compliance in Practice series addressing regulatory requirements
Submitting comment letters to regulators on proposed regulations, guides and legislation
Collaborating with regulators to ensure that guides and regulations are fit for purpose for the accountancy profession