Stokvels date back to an era where marginalised communities in the apartheid era had no other choice but to rely on each other. Stokvels continued to exist and thrive until the current day and age.
With thorough planning, a good structure, reliable members, compliance, and following legal processes, you can start and run a successful stokvel.
The legal aspect in stokvels is often overlooked, which can lead to issues of financial mismanagement and internal conflict. In this article, we’ll take you through the process of how to legally start a stokvel.
Register With National Stokvel Association of South Africa (NASASA)
Registering with a self regulatory organisation like NASASA can help stokvels in upholding standards that are in line with the law.
What is NASASA?
NASASA is a Self-Regulatory Organisation (SRO) that is recognised by the South African Reserve Bank. This organisation also aims to guide and support stokvels, as well as to drive efforts in maintaining the long-standing tradition of stokvels. The National Stokvel Association of South Africa operates under Government Notice 404 in Gazette 35368 on 25 May 2012. As a self-regulatory organisation, NASASA collaborates with the following authorities:
- National Prosecuting Authority (NPA)
- Financial Intelligence Centre (FIC)
- South African Reserve Bank’s Prudential Authority (SARB PA)
- Financial Services Conduct Authority (FSCA)
The organisation regulates the stokvel sector using the following structure:
- Regulator: The NASASA regulator role comprises an individual who oversees and makes sure that the structure of the organisation and all its bodies follow the standards set to provide support for stokvels.
- Registrar of Stokvels: This role involves the approval of stokvel registrations that aim to join NASASA.
- Supervisor of Stokvels: The Supervisor reviews its member stokvels and their activities to ensure that they operate within NASASA’s guidelines.
How to Register With NASASA?
- Download the application form. Download here.
- Ensure your constitution is in line with standards placed by NASASA’s guidelines.
- Submit your application by e-mailing info@nasasa.co.za.
NASASA Stokvel Group Constitution
The constitution established for the National Stokvel Association of South Africa is rooted in the following principles: regulatory authority, sector development, and governance. The policy articulates the following:
Name and Membership: Clearly state the stokvel’s name. Members join the stokvel voluntarily or through invites. This sets the foundation for a well-organised group.
Objectives and Rules: Outline the group’s core purpose. This could be savings, investment, or community support, or a part of the various types of stokvels. Establish clear rules and guidelines to ensure fair practices.
Meetings and Contributions: Detail the frequency of meetings. Also, outline the amount and timing of contributions. This ensures consistency and accountability. This is a vital aspect for the stokvel’s financial health.
Role of the Treasurer: Assign the treasurer. This member is responsible for managing the stokvel funds. They must present proof that funds were deposited, and the proof must be shared with the group. Additionally, the treasurer should provide monthly statements of the stokvel’s bank account. This role is crucial for financial transparency.
Role of the Secretary: The secretary is responsible for most administrative tasks in the group. This includes but isn’t limited to recording meeting minutes, managing communication, and maintaining essential documents. This ensures clear record-keeping.
Role of the Chairperson: The chairperson plays the role of a leader. This member ensures there’s cohesion in the group and guides it in the right direction.
Role of Special Purpose Roles: The stokvel must have processes where special purpose roles are defined. The member who will hold these roles should also be appointed. These roles support the stokvel’s diverse activities and objectives.
Role of the Group Member: Each member is expected to play an active role in the group by consistently contributing and upholding the stokvel’s rules and objectives.
Group Uniform Policy: Establish guidelines for a unified identity, such as a logo. Additionally, it is advised to have a unified appearance to encourage unity and a sense of identity.
Amendments: Outline the process for proposing and approving changes to the stokvel’s constitution or rules. This ensures there’s room for adaptability and allows the group to evolve as needed.
To know more about NASASA’s outlines, head to the website and view their Stokvel Regulatory Framework, as well as the Constitution.
Stokvels date back to an era where marginalised communities in the apartheid era had no other choice but to rely on each other. Stokvels continued to exist and thrive until Read More
