Author: Paul Kruger
Date Publiched: 16 November 2012
Last week, we commented on the fact that there are only 2 492 sole proprietors in the industry, based on the latest FSB statistics.
One reader, speaking from personal experience, wrote as follows:
It is very possible that there has been a reduction in sole props, AND THERE WILL BE MORE. They have not disappeared, but are simply operating through, or off, the back of other intermediaries. This alleviates a lot of the admin and getting the required guarantees, etc. There are many that have merged their books but still manage their own portfolios.
Unless he requests a comprehensive compliance audit of the new business, he has no real idea of what transpired in the past. Even then, there are dangers, such as business transactions not declared in the audit, as we saw in the recent Herman Pretorius saga ……………