Regulatory Compliance Kit

This paper describes the regulatory compliance, which a cooperative financial institution in South Africa (SACCO) needs to adhere to, in order to operate under the aegis of SACCOL (apex organization for cooperative financial institutions in South Africa).

The document states that to facilitate and standardize reporting, SACCOL has developed a Compliance Kit for regulation. The significant contents of the Kit are briefly summed up as follows:

• Part I - explains the implications for not submitting timely and appropriate information and reports by SACCO to SACCOL;
• Part II - guides a group on how to form a SACCO and contains requirements for registration and incorporation;
• Part III - lists the amendments, changes and additions that if made by a SACCO, it needs to have a mandatory prior approval from SACCOL;
• Part IV - deals with the prudential financial reporting and operating standards that a SACCO needs to adhere to as per the prevailing legislation in its working environment.

The other sections of this paper relate to the following issues for SACCOs:

• Infringement notifications and the consequent penalties;
• Associated costs of SACCOL membership;
• Winding up, amalgamation and transfer of assets of banks.

The paper concludes with an appendix chapter that contains the prescribed forms for compliance.