OPERATING

CONTEXT

OPERATING CONTEXT

ONGOING EVOLVING REGULATION

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

characterised by

  • 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 the new bills, recently approved by Cabinet, included provisions with focus on strengthening the methods of mitigating financial crime, altering workplace transformation laws and making it easier to do business

CHALLENGES

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

OUTLOOK

  • As emerging technologies drive new business and service models, governments must rapidly create, modify and enforce regulations
  • ESG will continue to be driving forces. 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

HOW THIS AFFECTS OUR STRATEGY

  • SAICA engages with regulators and government departments to understand the impact of proposed regulations and changes, provide input, and advocate for members’ interests where necessary. We provide thought leadership and guidance for members on the implications of upcoming regulations and the requirements to ensure compliance

  • SAICA has invited regulators to present on web based events with members and has facilitated knowledge sessions. Our response seeks to both 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

CAPITALS
AFFECTED

MATERIAL MATTERS AFFECTED

STRATEGIC INITIATIVES AFFECTED

TOP RISKS
AFFECTED

ONGOING EVOLVING REGULATION

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

characterised by

  • 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 the new bills, recently approved by Cabinet, included provisions with focus on strengthening the methods of mitigating financial crime, altering workplace transformation laws and making it easier to do business

CHALLENGES

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

OUTLOOK

  • As emerging technologies drive new business and service models, governments must rapidly create, modify and enforce regulations
  • ESG will continue to be driving forces. 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

HOW THIS AFFECTS OUR STRATEGY

  • SAICA engages with regulators and government departments to understand the impact of proposed regulations and changes, provide input, and advocate for members’ interests where necessary. We provide thought leadership and guidance for members on the implications of upcoming regulations and the requirements to ensure compliance

  • SAICA has invited regulators to present on web based events with members and has facilitated knowledge sessions. Our response seeks to both 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

CAPITALS
AFFECTED

MATERIAL MATTERS AFFECTED

STRATEGIC INITIATIVES AFFECTED

TOP RISKS
AFFECTED

MATHEMATICS IS A MAJOR CONCERN

Poor state of education impacts the CA pipeline

characterised by

  • The future pipeline of accounting students is hindered by underperforming and under capacitated education institutions

CHALLENGES

  • A major concern at a Basic Education level is mathematics. The low number of learners taking mathematics at high school, compounded by the extremely low number of learners passing with at least 60% means that the accountancy profession pipeline is at risk. Added to this is the need for further development of mathematics educators.  At a tertiary education level, challenges exist in pass rates for 3rd year and PGDA students. These factors affect all institutions but significantly affected are the historically disadvantaged universities and the distance providers

OUTLOOK

  • The future pipeline of accounting students is hindered by underperforming and under capacitated education institutions

HOW THIS AFFECTS OUR STRATEGY

SAICA’s efforts to uplift education (school and tertiary) include:

  • School reach
    • Advocating for pure mathematics as a subject
    • SAICA development camps in partnership with the provincial departments of education to assist learners in mathematics continued. These have seen learners who attend passing mathematics with the required level to ensure the growth of the chartered accountancy profession
    • Consider use of technology to augment educator capacity
  • SAICA sponsorship of SA Math’s Olympiad
    • Our initiatives are aimed at promoting the chartered accountancy profession, and all of SAICA’s designations while promoting the importance of mathematics. The first round of the SAICA sponsorship of SA Math’s Olympiad reached more than 50 000 learners and approximately 1 000 schools

CAPITALS
AFFECTED

MATERIAL MATTERS AFFECTED

STRATEGIC INITIATIVES AFFECTED

TOP RISKS
AFFECTED

MATHEMATICS IS A MAJOR CONCERN

Poor state of education impacts the CA pipeline

characterised by

  • The future pipeline of accounting students is hindered by underperforming and under capacitated education institutions

CHALLENGES

  • A major concern at a Basic Education level is mathematics. The low number of learners taking mathematics at high school, compounded by the extremely low number of learners passing with at least 60% means that the accountancy profession pipeline is at risk. Added to this is the need for further development of mathematics educators.  At a tertiary education level, challenges exist in pass rates for 3rd year and PGDA students. These factors affect all institutions but significantly affected are the historically disadvantaged universities and the distance providers

OUTLOOK

  • The future pipeline of accounting students is hindered by underperforming and under capacitated education institutions

HOW THIS AFFECTS OUR STRATEGY

SAICA’s efforts to uplift education (school and tertiary) include:

  • School reach
    • Advocating for pure mathematics as a subject
    • SAICA development camps in partnership with the provincial departments of education to assist learners in mathematics continued. These have seen learners who attend passing mathematics with the required level to ensure the growth of the chartered accountancy profession
    • Consider use of technology to augment educator capacity
  • SAICA sponsorship of SA Math’s Olympiad
    • Our initiatives are aimed at promoting the chartered accountancy profession, and all of SAICA’s designations while promoting the importance of mathematics. The first round of the SAICA sponsorship of SA Math’s Olympiad reached more than 50 000 learners and approximately 1 000 schools

CAPITALS
AFFECTED

MATERIAL MATTERS AFFECTED

STRATEGIC INITIATIVES AFFECTED

TOP RISKS
AFFECTED

BUSINESS FUNDAMENTALS ...

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SAICA Integrated Report 2022.
All Rights Reserved.

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Head Office

SAICA Integrated Report 2022. All Rights Reserved.

Site Links

Site Links

Head Office