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The Financial Sector BEE Charter sets custom
BEE requirements for the sector

March 2018

“My company operates in the short-term insurance environment. I understand
the new Financial Sector BEE Charter was published at the end of 2017 and
already applies. Is this correct and what changes has it introduced?”
The Financial Sector BEE Charter (“FSC”) was published on 1 December
2017 and is effective immediately, with no transitional period applicable. All
businesses operating within the South African financial sector, which includes
banks, short- and long-term insurers, stock exchange members and other
financial institutions, fall within this sector. The aim of the FSC is to promote a
transformed and globally competitive South African financial sector that reflects
the demographics of our country.
The FSC scorecard consists out of seven elements with two additional elements
over and above the five scorecard elements contained in the Generic
Department of Trade and Industry Codes of Good Practice (“Generic Codes”),
namely Empowerment Financing and Access to Financial Services. The main
focus of these additional two elements is to make financial services more
accessible to the previously un-banked and un-served. These elements only
apply to banks as well as short- and long-term insurers. Other enterprises within
the financial sector only have to comply with the other five scorecard elements.
The targets and point allocation for the Ownership element remains virtually
the same as those contained in the Generic Codes, with the overall black
ownership target set at 25%, including 10% black female ownership. The
Ownership element is also a priority element within the FSC with a sub-minimum
of 40% to be reached on the net value points available under this scorecard.
The Management Control element makes provision for points under executive,
senior, middle and junior management categories as well as disabled
employees with targets similar to those under the Generic Codes. Importantly,
the Management Control targets contained in the FSC are not aligned to the
national and provincial demographic targets although additional scorecard
points are available for ‘African’ appointments under certain of the management
categories.
Training programmes under the Skills Development element is management
level driven. Individual targets are set for learning programmes implemented in
each management category namely senior, middle and junior management
as opposed to the overall skills development target contained in the Generic
Codes. Where a measured entity does not distinguish between management
levels, the FSC make provision for combining targets on certain management
levels. The FSC also contains separate targets for training expenses towards non-

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