Exemption application for asset managers

Industry uncertainly as to whether asset managers, who manage properties primarily as investments rather than physically, fall under the “property practitioner” definition in the PPA, led to the application for exemption.

SAPOA has requested confirmation that asset managers fall outside the PPA’s ambit. If the PPRA determines otherwise, SAPOA has applied for a secondary exemption consideration from the Fidelity Fund Certificate requirement for asset managers. The outcome of this application should give clarification to commercial asset managers and further delineate the scope of applicability of the PPA to their profession.

Exemption application and outcome: Property developers

SAPOA also recently applied for an exemption from the PPRA to relieve property developers from the requirements in sections 47 and 48 of the PPA, which mandate that property developers must apply for and maintain a valid Fidelity Fund Certificate.

The PPRA’s ruling on this exemption application clarified that property developers who do not market or sell their own properties are exempt from these requirements, provided that they engage registered property practitioners for such activities. This means that these developers are not considered “property practitioners” under the Act and thus do not need to register with the PPRA or obtain Fidelity Fund Certificates.

However, the PPRA denied the exemption application for developers who handle in-house marketing and sales of their properties, arguing that an exemption would be unfair to other industry players and compromise consumer protection goals set by the PPA.

This should provide clarity for property developers going forward.