November 2013 The CPA and other market conduct legislation Decoding the overlap
Recap on the CPA There has been a movement to work with business on achieving compliance Recent developments: The ruling which previously exempt certain municipalities was overturned on 1 April 2013 A number of industries have had an industry specific code recognised by the Department of Trade and Industry to enable industry specific implementation The Consumer Goods Council has been appointed as a recognised industry body to hear disputes Overlap with the plethora of financial services industry legislation to be clarified by the Financial Services General Amendment Bill 2 SAPA November 2013
Recap on the CPA Key provisions Certain provisions have proved the most difficult to implement for businesses: Promotional competitions regulation Protection from potential liability claims Alignment of warranties Non compliance with direct marketing provisions, particularly the overlapping provisions of the Electronic Communications and Transactions Act and the Protection of Personal Information Bill 3 SAPA November 2013
Recap on the CPA Key provisions Certain provisions have proved the most difficult to implement for businesses: Promotional competitions regulation Protection from potential liability claims Alignment of warranties Non compliance with direct marketing provisions, particularly the overlapping provisions of the Electronic Communications and Transactions Act and the Protection of Personal Information Bill 4 SAPA November 2013
Recap on the CPA Direct marketing disaster. With so much legislation regulating direct marketing, what can you do? CPA : All types of direct marketing with an opt OUT provision ECTA: Only electronic direct marketing with an opt OUT provision PPI Bill: Only electronic direct marketing with an opt IN provision This excludes any industry specific legislation such as the NCA, FAIS, LTIA, STIA and TCF!! 5 SAPA November 2013
Plethora of regulation, with more coming Financial Intelligence Act Pension Funds Act Short Term Insurance Act King 3 Code of Corporate Governance Electronic Communications and Transactions Act Long Term Insurance Act Competition Act Protection of Personal Information Bill National Credit Act Treat your customer fairly Solvency II Know Your Customer Promotion of Access to Information Act Foreign Accounts Tax Compliance Act Financial Advisory and Intermediary Services Act Consumer Protection Act Anti-Money Laundering Financial Intelligence Centre Act Board Audit Committee Risk & Legal Regulators This is a mess, but organisations that can co-ordinate their regulatory efforts and integrate them with other initiatives, while also extracting adjacent business benefits will steal a march on their competitors Other stakeholders Strategy Finance IT HR Marketing Ops Projects CURRENT >>> 6 SAPA November 2013 Regulatory pressures will only intensify over time >>> FUTURE
Determining your regulatory universe Below is a high level process which should be used to understanding what forms part of the regulatory universe: Industry Specific Legislation 100 429 National Legislation 65 Division Specific Legislation Divisional Regulatory Universe 7 SAPA November 2013
Unpacking the overlap Duplicate provisions should be identified, understood and processes changed thereafter 1 Identifying all provisions, per piece of regulation, which contains an obligation on the business 2 Identifying all overlap between duplicate obligations 3 Converting each obligation into a business process control 4 Implementing each control into the business 5 Developing a test per control and assigning responsibility for execution thereof 8 SAPA November 2013
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