1. Presentation to Parliament’s Standing
Committee on Finance
Tuesday, 14 March 2017

2. The Financial Sector Charter Council’s Mandate
Oversee all matters relating to the Financial Sector Code and its implementation
Report on transformation progress
Issue Interpretive Guides and Standards
Address Sector Code implementation issues
Create awareness, understanding and commitment towards the Sector Code

3. Chronology of key events
2003 – BEE Act introduced.
2004 – Original Financial Sector Code (FSC) came into effect as a voluntary code and Financial Sector Charter Council (FSC Council) was established.
2007 – Generic Codes of Good Practice (COGP) was promulgated by DTI and essentially rendered FSC redundant.
2009 – FSC re-alignment negotiations recommenced.
2012 – Aligned FSC eventually agreed to and gazetted. COGP no longer applied by the sector.

4. Chronology of key events (Continued)
October 2013 – DTI promulgates revised generic code with substantially ramped up targets. 18 month phase in period is catered for. FSC however remained in effect for our sector.
April 2015 – Revised generic code officially came into effect in sectors that don’t have their own codes.
October 2015 – Deadline by which sector codes had to realign.
November 2016 – Draft Aligned FS Code was published for comments under section 9(5) of the B-BBEE Act. After a thorough consultation process amendments were made to the draft, based on a combination of comments received and engagements with the DTI’s BEE Unit. The Aligned FS Code is thus pending section 9(1) gazette.

5. Council Constituencies (All agreements on 100% consensus)
- Government: Department of Finance, Department of Trade and Industry and Presidency
- Black Professionals represented by ABSIP
- NEDLAC Organised Labour represented by COSATU, NACTU and FEDUSA
- NEDLAC Organised Community represented by the Financial Sector Coalition Campaign
- Trade Associations : The Banking Association South Africa (BASA)
International Bankers Association (IBA)
The Association for Savings and Investment South Africa (ASISA)
South African Insurance Association (SAIA)
Johannesburg Stock Exchange (JSE)
Financial Intermediaries Association (FIA)
Southern African Venture Capital & Private Equity Association (SAVCA)
The Financial Sector Charter Council has been constituted to be responsible for overseeing the implementation of the Financial Sector Code.
Organized Community ” means, the NEDLAC Community Constituency representatives made up of the following organisations:
Financial Sector Campaign Coalition;
Disabled People South Africa;
National Co-operatives Association;
Women’s National Coalition;
SA Youth Council;
SA National Civics Organisation.
" Organized Labour ” means, the NEDLAC Labour Constituency representatives made up of the following federations:
Congress of South African Trade Unions (COSATU);
National Council of Trade Unions (NACTU);
Federation of Unions of South Africa (FEDUSA)
"The Trade Associations” - business entities falling within the scope of application of the Code. These associations include, and are no limited to, the following:
Association of Savings and Investments South Africa (ASISA);
Banking Association of South Africa;
Short-term Insurers Association of South Africa (SAIA);
The International Bankers Association of South Africa (IBA)
The Johannesburg Stock Exchange (JSE)
All Council decision made by consensus.
Council Constituencies

6. 2014/2015 Review on the transformation of the financial
sector of South Africa
2014/2015 Review on the transformation of the financial
sector of South Africa
Council sub-structures
Reports for the measurement periods 31/12/2014 and 31/12/2015 have been prepared by the Council and should be published shortly.
We have noted that many companies in the sector have already started implementing some of the draft provisions, pending the final gazette.
An overview of the key findings are detailed in the slides below.

7. Responses by Sub-Sector
By year
- SAVCA and FIA have been exempted for the 2014 / 2015 reporting periods.

8. Average Ownership Scores by Year
Average Score out of 17
Weighted Average Score
2013
11.00
N/A
2014
10.89
13.18
2015
9.52
10.59

9. Ownership Black Shareholding Trends by Year

10. Ownership Black Women Shareholding Trends by Year

11. Management Control Average Scores by Year
Average Score out of 8
Weighted Average Score
2013
4.27
N/A
2014
3.68
5.18
2015
4.09
5.15

12. Management Control Executive Members of the Board by Year

13. Management Control Executive Women Members of the Board by Year

14. Employment Equity Average Scores by Year
Average Score out of 18
Weighted Average Score
2013
8.50
N/A
2014
8.45
10.12
2015
8.64
10.25

15. Employment Equity Black Senior Management by Year

16. Employment Equity Black Women Senior Management by Year

17. Skills Development Average Scores by Year
Average Score out of 10
Weighted Average Score
2013
6.32
N/A
2014
6.10
8.41
2015
6.16
8.42

18. Skills Development Black Disabled Spend by Year

19. Preferential Procurement Average Scores by Year
Average Score out of 16
Weighted Average Score
2013
12.11
N/A
2014
11.84
14.75
2015
12.65
14.94 c

20. Preferential Procurement Average Spend with B-BBEE Suppliers by Year

21. Enterprise Development For FSC Council Generic entities reporting Empowerment Financing by Year

22. Enterprise Development For FSC Council Generic entities not reporting Empowerment Financing by Year

23. Socio-economic Development Average Scores by Year
Average Score out of 3
Weighted Average Score
2013
2.50
N/A
2014
2.88
2015
2.55
2.96

24. Access to Financial Services Score by Year
Average Score out of 14
Weighted Average Score
2013
6.92
N/A
2014
8.86
11.48
2015
8.77
10.83

25. Consumer Education Average Scores by Year

26. T H A N K Y O U