Monday Morning Briefing

Weekly
News.

Current edition 5 October 2026

Active FIC supervision, a levy-collection warning from the High Court, and two consultation deadlines for schemes to act on.

Evidence, reconciliation
and deadlines.

The FIC’s latest annual report confirms a data-led, risk-based inspection environment. For schemes collecting arrears, a recently reported High Court judgment shows why a clean split between levies, interest, payments and legal costs is essential before choosing a drastic remedy.

01FIC / FICAPublished 30 September 2026

Confirmed annual report · no change to the law

FIC report confirms a data-led inspection environment

The FIC’s 2025/26 annual report records 60,115 registered institutions, 549 risk-based inspections, 160 compliance reviews, more than 10.8 million regulatory reports and 718,464 suspicious or unusual transaction reports. The FIC says self-assessment data is used to identify higher-risk institutions for targeted supervisory action.

Why it matters: the figures do not create a new obligation, but they confirm active, risk-based supervision. For property businesses subject to Item 3, the RMCP, registration profile, risk-and-compliance return and actual controls must tell the same story. Directive 12’s first annual RMCP deadline is now 26 days away.

Do this week

Complete entity classification, freeze the RMCP against Guidance Note 7B, obtain signed approval and test the submission route. Reconcile each affected entity’s GoAML profile and prior return answers against the document that will be filed by 31 October.

02Court outcome17 August 2026

Gauteng High Court, Pretoria · confirmed judgment, recently reported

Sequestration is not a shortcut for a disputed running levy account

In Leisure Bay Body Corporate v Moretlwe, case 2023-070978, [2026] ZAGPPHC 936, the court dismissed the body corporate’s final sequestration application. Although the jurisdictional requirements of an act of insolvency and creditor advantage were met, the owner had paid the original R46,150.52 judgment and continued making payments above the monthly levy. The later claimed balance exceeded R200,000 and included untaxed legal costs, with interest calculated on a running balance that included those costs. The court exercised its discretion against sequestration and made no costs order.

Why it matters: sequestration is not designed as a single-creditor debt-collection mechanism where execution against the unit is available. A composite, escalating ledger can obscure the true levy debt and weaken the case for insolvency relief.

Do this week

Reconcile arrears files into separate columns for levies, interest, payments and taxed or agreed legal costs. Before sequestration, record why execution, a CSOS order or ordinary civil recovery is inadequate, and obtain scheme-specific legal advice.

03Municipal proposalComments close today

Draft · not current law

Cape Town short-term-let comments close today

The City’s draft Short-Term Letting By-law remains open for comment until 5 October 2026. It proposes mandatory City registration for properties advertised on booking platforms, display of a registration number and commercial-accommodation rates treatment where short-term letting exceeds 50% of annual room-night capacity. Rating changes are intended from 1 July 2027.

Why it matters: if adopted, Cape Town owners could face new registration duties and different rates treatment. The proposal would not displace a body corporate’s or HOA’s properly adopted conduct or use restrictions.

Do this week

Submit any evidence-based comment today and retain proof. Review scheme rules separately; municipal registration would not itself authorise short-term letting within a community scheme.

04Electricity proposalComments close 28 October

National policy proposal · not adopted

Electricity-pricing comments now close on 28 October

The Minister extended the public-comment period on the revised Electricity Pricing Policy and Electricity Sector Market Transformation Position Paper to 28 October 2026. The proposed framework addresses cost-reflective tariff design, consumer-protection objectives and transmission and distribution use-of-system charges.

Why it matters: the proposal does not change current tariffs. If adopted, however, its principles could influence future Eskom and municipal pricing, including the treatment of bulk supply, common-area consumption, embedded generation and prosumers.

Do this week

Identify schemes with material bulk-supply exposure, solar generation, wheeling or unusual tariff structures. Consider a direct or industry-body submission supported by actual billing and infrastructure evidence before 28 October.

Watchlist

No other material national change verified

For 29 September–5 October 2026, no new CSOS practice directive, STSMA or prescribed-rule amendment, reserve-fund contribution change, scheme-insurance regulation, PPRA managing-agent instruction or other consequential national operational directive was verified. The Leisure Bay judgment is a recently reported application of existing law, not a new levy-recovery rule.

Your seven-point check

  1. 01Close RMCP classification, approval and submission-route gaps.
  2. 02Reconcile each affected entity’s GoAML profile and return answers.
  3. 03Separate levies, interest, payments and recoverable legal costs in arrears ledgers.
  4. 04Review sequestration files against less drastic recovery options.
  5. 05Submit Cape Town short-term-let comments today.
  6. 06Match every PPRA trust-account entity to an audit submission receipt.
  7. 07Assess electricity-pricing policy exposure before 28 October.

Prepared as a practical industry briefing, not legal advice. Always assess the facts and governing documents of the individual scheme.

Earlier Monday briefings

28 September 2026Clear rules and October deadlines

Court outcome: In Gateside Manor Homeowners Association v Hamisi and Others, case A3130/2021, [2026] ZAGPJHC 979 (Gauteng High Court, Johannesburg, 28 August 2026), the court dismissed the HOA’s appeal against a CSOS adjudication order. The HOA’s documents did not clearly prohibit synthetic grass, and a later resolution could not create a retrospective contractual prohibition.

Deadline watch: Cape Town’s draft Short-Term Letting By-law remained open for comment until 5 October. Affected Item 3 accountable institutions still had to submit an approved RMCP by 31 October under FIC Directive 12.

PPRA: proof of trust-account audit submission remained a business-continuity control because prolonged non-compliance could jeopardise the business and employee Fidelity Fund Certificates.

21 September 2026PPRA audit enforcement and meter responsibility

PPRA: The 16 September final communiqué confirmed that trust-account audit reports are due within six months after financial year-end. Late filing attracts R20 per day for the first three months; a report still outstanding thereafter may trigger a R25,000 compliance-notice fine and jeopardise business and employee Fidelity Fund Certificate renewals.

Court outcome: In Seale v Aurora Place Body Corporate and Another (Appeal), case A111/2026, [2026] ZAWCHC 456 (Western Cape High Court, 31 August 2026), the owner’s appeal was dismissed. The prepaid supply-control meter fell under prescribed management rule 29(4), not the express maintenance duty for consumption-measuring meters in rule 29(3); the scheme resolution and evidence supplied no other basis for body-corporate liability.

Proposal and deadline watch: Cape Town’s draft Short-Term Letting By-law remained open for comment until 5 October. For affected Item 3 accountable institutions, the Directive 12 RMCP submission deadline remained 31 October.

14 September 2026Arrear-levy finance risk

Confirmed court outcome: In Propell Sectional Title Solution (Pty) Ltd v Body Corporate of Edlyn Court, case 2025/062698, [2026] ZAGPJHC 995 (Gauteng Local Division, 28 August 2026), the court granted summary judgment for R416,763.23, interest at 16.75% from 20 March 2025 and attorney-and-client costs. Stopping further advances had not ended the body corporate’s residual liability or started prescription; demand triggered the debt under the agreement.

Practical lesson: review every arrear-finance agreement for residual liability, demand, acceleration, termination, interest and certificate-of-balance clauses. Reconcile advances, owner recoveries and the scheme’s remaining exposure before signing any addendum or acknowledgement of debt.

7 September 2026FIC Directive 12 takes effect

Confirmed regulatory change: Directive 12 took effect on 7 September 2026. Affected Item 3 institutions must submit an approved RMCP by 31 October 2026 and annually thereafter. Guidance Note 7B requires the control framework to address proliferation-financing risk and risks from new technology, systems, delivery channels and business practices.

Other key items: the PPRA’s managing-agent debit-order clarification permits authorised recurring scheme obligations subject to written authority, scheme-specific allocation, sufficient funds and daily reconciliation. In Panorama Body Corporate v Modern Enterprises, [2026] ZAWCHC 447 (21 August 2026), the High Court confirmed enforcement of a R3.51 million CSOS levy order and held that launching review proceedings did not itself suspend execution.