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

Industry Charters

Financial Services  Charter

Code Series FS900: Framework for Measuring Broad-Based Black Economic Empowerment for QSFIS

Statement 900: General Principles and the Scorecard

4. Scoring Methodology for QSFIs

 

4.1 Company A shall select 5 elements to be measured against.

 

4.2 Company A shall then apply the applicable Code Series for each specific element it has chosen. For avoidance of doubt the Code Series to be applied are 5 of the 9 Code Series being FS Codes 000, 100, 200, 300, 400, 500, 600, 700 and 800 in their entirety, including all definitions, key measurement principles and scorecards in determining its performance.

 

4.3 Once Company As performance against the selected elements has been determined it shall weight its performance to 100.

 

4.4 The weighted score out of 100 shall determine the QSFIs B-BBEE Recognition level according to table 1 below:

 

4.4.1 Weighted Score shall be determined using the Formula:

 

A = (B/C) x 100

 

Where:

 

A is the weighted score to be applied against Table 1 below

 

B is the sum of actual scores (including any applicable bonus points) obtained by the Measured Entity for its 5 chosen elements

 

C is the sum of the total points available to the measured entity for it 5 chosen elements

 

Table 1

 

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 Contributor

≥ 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%

 

 

4.5        Illustrative example

 

Company A is a QSFI and elects to be measured against the following 5 elements:

•        Ownership

•        Management

•        Employment Equity

•        Preferential Procurement

•        SED

 

Company A shall apply FS Codes 000, 100, 200, 300, 500 and 700 in their entirety, including all definitions, key measurement principles and scorecards in determining its performance.

 

Company A has determined its performance as follows:

 

Element

Available Points

Company A's Actual Points

Ownership

14 + 3 bonus

10 (incl. Bonus)

Management Control

8 + 1 bonus

6 (incl. Bonus)

Employment Equity

15 + 3 bonus

11 (incl. Bonus)

Preferential Procurement

16

12

Socio-Economic Development

3

3

Totals

56 + 7 bonus = 63

42 (incl. Bonus)

 

As per the formula detailed in paragraph 4.4.1 above:

 

Weighted Points = (42/63) x 100

                                  = 66.67%

 

Company A's B-BBEE Recognition Level as per Table 1 above is therefore a Level 4 B-BBEE Contributor