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

Industry Charters

Financial Services  Charter

Code Series FS600: The Measurement of the Enterprise Development and/or Empowerment Financing Element of Broad-Based Black Economic Empowerment

1. Introduction

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1.1Code 600, Statement 600 of the Generic Codes applies.

 

1.2Certain types of measured entities to which this Financial Sector Code applies have been exempted from making contributions towards the Empowerment Financing Element of this Financial Sector Code.

 

1.2.1Entities within the following sub-sectors have been exempted from Empowerment Financing:

 

1.2.1.1Short-term Insurance

 

1.2.1.2Re-insurance;

 

1.2.1.3The management of retirement, pension and collective investment scheme assets;

 

1.2.1.4Management of formal collective investment schemes;

 

1.2.1.5Financial Services Intermediation and Brokerage;

 

1.2.1.6Management 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

 

1.2.1.7Underwriting Management Agents.

 

1.2.1.8These Measured Entities may however, choose to be measured against Empowerment Financing.

 

1.2.2These Measured entities shall contribute towards The Enterprise Development Element of this code as per the principles defined under Statement FS601.

 

1.3Measured entities that are not exempted from contributing towards the Empowerment Financing Element of this sector code shall contribute towards the Empowerment Financing and Enterprise Development Elements of this Code as per the principles defined under Statement FS602.