Older Persons Act, 2006
R 385
Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Industry ChartersFinancial Services CharterCode Series FS900: Framework for Measuring Broad-Based Black Economic Empowerment for QSFISStatement 900: General Principles and the Scorecard4. 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
