The Financial Sector Transformation Council (FSTC) has given entities operating in the financial sector until 27 February to submit their broad-based black economic empowerment (B-BBEE) compliance reports for 2025.
Section 10(4) of the B-BBEE Act, as well as the Financial Sector Code, requires each institution that operates within the financial sector to provide an annual report to the FSTC, outlining its progress in implementing the provisions of the Code.
The Code applies to natural or juristic persons conducting a business, trade, or profession in the South African financial sector. The Code does not apply to persons with no South African trading operations and managers of investments on behalf of the public who are not subject to regulation by the Financial Sector Conduct Authority.
In Reporting Notice 1 of 2025, published on 7 October 2025, the FSTC said all financial sector entities must report on their progress in implementing the Code for the period 1 January to 31 December 2025.
The reporting requirements depend on an entity’s annual total revenue (typically the latest measured financial year) and black ownership status. These are:
Exempted Micro-Enterprises (EMEs)
- Total annual turnover of up to R10 million.
- Submit FS Code Sworn Affidavit 1 (or Affidavit 3 for specialised entities), downloadable from the FSTC’s website.
Qualifying Small Financial Institutions (QSFIs)
- Total annual turnover of more than R10m but less than R50m.
- QSFIs with a black ownership of 51% or more must submit Affidavit 2 (or Affidavit 4 for specialised entities).
- QSFIs with less than 51% black ownership must submit a verification certificate to confirm their B-BBEE status and a verified BBEE scorecard.
Specialised entities are entities that are state-owned or do not have ownership that can meet the requirements for measurement of black ownership. These entities include organs of state, public entities and enterprises owned by organs of state, companies limited by guarantee, not-for-profit companies, public higher education institutions, and not-for-profit organisations.
For EME and QSFI affidavit submissions to be valid, the FSTC requires that:
- The affidavit is completed in full.
- It shows the financial year-end (date, month, and year).
- The Commissioner of Oaths’ date and the deponent’s dates coincide.
- It must be issued for the period between 1 January 2025 and 31 December 2025.
Generic Entities
- Total annual turnover above R50m (only the South African revenue is considered).
- Submit a verified B-BBEE certificate and a verified B-BBEE scorecard.
The required documentation must be emailed to reporting@fstc.org.za by the close of business on Friday, 27 February. The subject line should be “FSTC 2025 Reporting – [name of entity]”.
Entities encountering difficulties in submitting the requested information should contact the FSTC at reporting@fstc.org.za or 087 062 5950.
The FSTC reserves the right to name entities that do not submit reports. In addition, it may also discount the entity by one B-BBEE level in the next rating following the year in which the entity failed to report.
Disclaimer: This article provides information of a general nature only. It does provide legal advice that is necessarily adequate for all reporting entity’s circumstances and needs.
