Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Industry ChartersFinancial Services CharterCode Series FS100: Measurement of the Ownership Element of Broad-Based Black Economic EmpowermentStatement 103: The Recognition of Equity Equivalents4. Measurement of Equity Equivalent Contributions on the Ownership Scorecard |
| 4.1 | The ownership score of a Measured Entity participating in an Equity Equivalent Programme is calculated in terms of paragraph 4.3. A foreign Multinational (including local branches of International Banks) participating in an Equity Equivalent Programme cannot receive any points for ownership under any Statement in Code Series 100 other than this statement. For avoidance of doubt local banks or domestic multinationals may only utilise Equity Equivalents to a maximum of 5% of its measurable portion and may, therefore receive points for Ownership under any Statement in Code series 100. |
| 4.2 | Contributions to Equity Equivalent Programmes are measured as actual Rand Value of contributions made using the general principles as set out in paragraph 8 of this Statement 103 and Code series FS600, FS700 and FS800 (Note that certain general principles defined under paragraph 8 may be the same as certain general principles in Code series FS600, FS700 and FS800) against the following target: |
| 4.2.1 | 25% of the value of the South African operations of the Foreign Multinational or branch of a foreign bank qualifying for the recognition of Equity Equivalents. The 25% value is determined by using a Standard Valuation and calculated as at 31 December 2010; or |
| 4.2.2 | A maximum of 5% of the Rand value of the South African operations for Local Measured Entities calculated as at 31 December 2010. |
| 4.3 | The Ownership Score under an Equity Equivalent Programme using the target in paragraph 4.2 must be calculated in terms of Annexe 103(A) using the principles as defined under paragraph 2.1 to 2.4 of this Statement 103. |