Property company Resilient will need to prove that there are specific reasons why it does not have to register as a credit provider if it wishes to continue to offer its staff interest-carrying loans to buy its shares, otherwise it will be found in contravention of the National Credit Act (NCA). It had always been the view of the National Credit Regulator (NCR) "that staff loans, if interest or fees are charged, are credit agreements between parties dealing at arm’s-length, which fall within the ambit of the National Credit Act and … the employer has to register as a credit provider", said Lizelle Squirra, NCR legal adviser: registrations and compliance. This followed CEO Des de Beer’s repeated comments that his company had thoroughly checked if registration as a credit provider was necessary before concluding it was not. "No, Resilient does not need to be registered and we obtained senior counsel opinion confirming this," he said. Manager for registrations at the NCR Zolile Mngqund...
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