Key principles
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2.1             The fundamental principle for measuring B-BBEE compliance is that substance takes precedence over legal form.

2.2             In interpreting the provisions of the CoGP and this Financial Sector Code, any reasonable interpretation consistent with the objectives of the Act and the B-BBEE Strategy must take precedence.

2.3             The basis for measuring B-BBEE initiatives under this Financial Sector Code is the B�BBEE compliance of the measured entities during the measurement period.

2.4             Any misrepresentation or attempt to misrepresent any enterprise's true B-BBEE status may lead to the disqualification of the entire scorecard of that enterprise.

2.5             Initiatives which separate or divide enterprises solely as a means of ensuring eligibility as an Exempted Micro-Enterprise Qualifying Small Financial Institution or a Start-up Enterprise are a circumvention of the Act and may lead to the disqualification of the entire scorecard of those enterprises concerned.

2.6             Any representation made by an entity about its B-BBEE compliance must be supported by a valid B-BBEE certificate and scorecard, issued by an accredited verification agency. This requirement does not apply to divisions or subsidiaries that submit reports in terms of paragraph 8.3 of Code series FS000. For these entities, their B-BBEE compliance must be supported by suitable evidence or documentation. Any entity that does not provide proof of B-BBEE compliance, must not receive any recognition for that initiative.

2.7             Wherever a Standard Valuation Method applies to measuring an indicator, the same standard should apply, as far as reasonably possible, consistently in all other applicable calculations in this statement.

2.8             Where the Financial Sector Code is silent on certain provisions, the provisions of the Generic Code shall take precedence.

2.9             In general, a financial institution that is a local subsidiary of a multinational or external company (as defined in Section 1 of the Companies Act (Act 61 of 1973, as amended, repealed or superseded)) or a branch of a multinational or external company that is precluded in terms of a Global Policy from accommodating domestic ownership participation, will be exempt from the ownership provisions of Code series FS100.

2.10          The B-BBEE compliance level of an institution which has been exempted from compliance with any element or sub-element, must be determined by adding its actual points earned for each of the scorecard elements in line with paragraph 8.2 of Code 000, Statement 000 of the CoGP. The B-BBEE compliance level shall be the sum of the actual points earned divided by the total amounts available to it (that is, the scorecard total less exempted elements).

2.11          All scores achieved by the financial institutions under the scorecards in paragraph 8.2.3 of Code series FS000 must be used to determine the compliance level in line with paragraph 8.2 of Code series FS000.

2.12          The verification of B-BBEE compliance of financial institutions will be undertaken by B-BBEE verification agencies that are accredited by the South African National Accreditation System (SANAS) or any other bodies as may be given authority to accredit agencies by the Department of Trade and Industry.

   
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