Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Industry Charters

Financial Services  Charter

Code Series FS100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment

Statement 103: The Recognition of Equity Equivalents

5. Examples of Equity Equivalent Programmes

 
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5.1Enterprise creation:

 

5.1.1If the Equity Equivalent contribution of the entity involves the creation of a new enterprise:

 

5.1.1.1The new enterprise must qualify as a Value-Adding enterprise;

 

5.1.1.2The creation of the new enterprise must comply with the requirements for a Qualifying Transaction as defined in statement 102;

 

5.1.1.3The creation of the new enterprise cannot contribute to the entity's score under Code series FS600; and

 

5.2Investment in social advancement:

 

5.2.1An Equity Equivalent contribution of the entity applying for recognition of Equity Equivalents that involves enhanced Socio-Economic Development.

 

5.2.1.1Must comply fully with Code series FS700; and

 

5.2.1.2Cannot form part of the score of the entity applying for recognition of Equity Equivalents under Code series FS700.

 

5.3Empowerment Finance:

 

5.3.1An Equity Equivalent contribution of the entity applying for recognition of Equity Equivalents that involves enhanced Empowerment Finance.

 

5.3.1.1Must comply fully with Code series FS600; and

 

5.3.1.2Cannot form part of the score of the entity applying for recognition of Equity Equivalents under Code series FS600.

 

5.4Investment in Access to Financial Services:

 

5.4.1An Equity Equivalent contribution of the entity applying for recognition of Equity Equivalents that involve enhanced Access to Financial Services:

 

5.4.1.1Must comply fully with Code series FS800; and

 

5.4.1.2Cannot form part of the score of the entity applying for recognition of Equity Equivalents under Code series FS800.