Reporting to the FSC Council

The Financial Sector Charter Council recently approached a number of people in the industry requesting that they register and submit their 2016 B-BBEE report.

One reader actually submitted the form, together with his exemption certificate. The response read:

“Your submission is noted. You will still have to report, you will just state in the report that you are an EME.”

Now, if you were Australian, you may have confused this with their version of the ostrich, the Emu, which is actually very apt in this regard. You have three options: Stick your head in the sand, fight them, or comply. The latter is possibly the best option. Being right will get you nowhere.

It is not about your records being right – it is about theirs.

Moonstone Compliance reports as follows:

The effective date of the Codes of Good Practice on B-BBEE in terms of Notice 997 of 2012 was 26 November 2012.

This effectively means that the Financial Services Sector Code is binding on all stakeholders operating in the Financial Services Sector as indicted below. Please also note the exclusions listed hereunder.

The Financial Sector Code applies to any natural or juristic person conducting a business, trade or profession in the South African financial sector, including, but not limited to, the following:

  • Banking
  • Long-term insurance
  • Short-term insurance
  • Re-insurance
  • The management of retirement, pension and collective investment scheme assets
  • Management of formal collective investment schemes
  • Financial Services Intermediation and Brokerage
  • Management of investments on behalf of the public, including, but not limited to, private equity, members of any exchange licensed to trade equities or financial instruments in South Africa and entities listed as part of the financial index of a licensed exchange; and
  • Underwriting Management Agents

The Financial Sector Code does not apply to:

  • Natural or juristic persons who do not have trading operations in the Republic of South Africa
  • The trading operations of natural or juristic persons outside the Republic of South Africa; and
  • Managers of investments on behalf of the public who are not subject to regulation in terms of the Financial Services Board, for example, money held in intermediate trusts by lawyers.

If you did not receive a request of this nature, smile and pour a cuppa. If you did, pour something stronger and make like a river – follow the route of least resistance.

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