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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

 

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

 

1.2 Certain 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.

 

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

 

1.2.1.1 Short-term Insurance

 

1.2.1.2 Re-insurance;

 

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

 

1.2.1.4 Management of formal collective investment schemes;

 

1.2.1.5 Financial Services Intermediation and Brokerage;

 

1.2.1.6 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

 

1.2.1.7 Underwriting Management Agents.

 

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

 

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

 

1.3 Measured 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.