Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Industry ChartersFinancial Services CharterCode Series FS000: Framework for Measuring Broad-Based Black Economic EmpowermentStatement 000: General Principles and the Scorecard8. The Financial Sector Scorecard |
8.1 The following table represents the Scorecard and contains the:
8.1 .1 Elements of the scorecard;
8.1 .2 Weightings; and
8.1 .3 | Financial Sector Code series reference that specifies the mechanisms for measurement and calculation of each of the elements of the scorecard (Code series 100 – 800). |
Element |
Available Points |
% Weighting |
Primary Reference |
Ownership |
14 + 3 bonus |
14% |
Code series FS100 to be read with Code series 100 of the Generic Code |
Management Control |
8 + 1 bonus |
8% |
Code series FS200 to be read with Code series 200 of the Generic Codes |
Employment Equity |
15 + 3 bonus |
15% |
Code series FS300 to be read with Code series 300 of the Generic Codes |
Skills Development |
10 |
10% |
Code series FS400 to be read with Code series 400 of the Generic Codes |
Preferential Procurement |
16 |
16% |
Code series FS500 to be read with Code series 500 of the Generic Codes |
Empowerment Financing |
15 |
15% |
Code series FS600 |
Enterprise Development* |
5 |
5% |
Code series FS600 to be read with Code series 600 of the Generic Codes |
Socio-Economic Development |
3 |
3% |
Code series FS700 to be read with Code series 700 of the Generic Codes |
Access to Financial Services |
14 |
14% |
Code FS800 |
Total |
100 + 7 bonus |
100% |
|
*For Measured Entities that are exempted from Empowerment Financing, the total number of points available shall be 95 + 7 bonus. This is as a result of having only 15 points available for Enterprise Development and zero available for Empowerment Financing, whereas enterprises that are not exempt from Empowerment Financing have 5 points available for Enterprise Development and 15 available for Empowerment Financing. For measured entities that are exempted from Empowerment Financing, the Enterprise Development Measurement Principles, Scorecard and Benefit Factor Matrix shall align completely with all the provisions of Code series 600 of the Generic Codes. Therefore, the Recognition level of these entities shall be based on the score obtained via the following formula:
A = (B/95) x 100
Where:
A = the deemed score achieved (to be applied to the table under paragraph 8.2 below)
B = the total number of points achieved (including Bonus Points)
The same principle shall apply to measured entities that are exempt from both Empowerment Financing and Access to Financial Services or to measured entities that are exempt from only Access to Financial Services.
8.2 | Based on the overall performance of a Measured Entity using the Scorecard it receives the following B-BBEE Status-: |
B-BBEE Status |
Qualification |
B-BBEE Recognition Level |
Level One Contributor |
≥ 100% on the FSC Scorecard |
135% |
Level Two Contributor |
≥ 85% but ˂ 100% on the FSC Scorecard |
125% |
Level Three Contributor |
≥ 75% but ˂ 85% on the FSC Scorecard |
110% |
Level Four Contributor |
≥ 65% but ˂ 75% on the FSC Scorecard |
100% |
Level Five Contributor |
≥ 55% but ˂ 65% on the FSC Scorecard |
80% |
Level Six Conributor |
≥ 45% but ˂ 55% on the FSC Scorecard |
60% |
Level Seven Contributor |
≥ 40% but ˂ 45% on the FSC Scorecard |
50% |
Level Eight Contributor |
≥ 30% but ˂ 40% on the FSC Scorecard |
10% |
Non Compliant Contributor |
˂ 30% on the FSC Scorecard |
0% |
8.3 | If a financial institution is a member of a group, it will be measured and reported on as part of the South African group unless: |
8.3.1 | The financial institution is a listed company; or |
8.3.2 | The financial institution opts to be measured as a separate company. |
8.3.3 | Notwithstanding paragraphs 8.3.1 and 8.3.2, should any division or business unit or subsidiary within a measured entity be deemed as a significant division or business unit or subsidiary it shall, upon request of the Financial Sector Council be required to produce and submit its own scorecard to the Council for information purposes. The scorecard need not be independently verified; however, the head of that division or business unit or subsidiary must attest to the accuracy of the scorecard submitted. |
8.3.3.1 | The division or business unit or subsidiary referred to in paragraph 8.3.3 above may utilise its Group B-BBEE report for official use or it can opt to utilise its own scorecard (as per paragraph 8.3.3 above) should that scorecard be verified. |
8.3.3.2 | A significant division, business unit or subsidiary is defined as: |
• | Any subsidiary, division or business unit forming part of a Consolidated Group Scorecard that conducts its primary business activities in a sector other than the financial sector; or |
• | Any subsidiary, division or business unit forming part of a Consolidated Group Scorecard that contributes more than 50% of the measured entity's revenue. |
8.4 | Each financial institution will report annually to the Financial Sector Council on its progress in implementing the provisions of this Financial Sector Code. |