Introduction

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

Measurement Criteria Weighting Points Banks Target Weighting Points Long-term Assurers Target
2.1 Targeted Investments
Transformational Infrastructure
Black Agricultural Financing
Affordable Housing
Black Business Growth and SME Funding
12 R48bn 12 R27bn
2.2 B-BBEE transaction financing and Black Business Growth / SME Funding 3 R32bn 3 15bn
Empowerment Financing Total 15 15
2.3 Annual value of all Supplier Development contributions made by the measured entity 7 1.8% of NPAT 7 1.8% of NPAT
2.4 Annual value of all Enterprise Development contributions made by the measured entity 3 0.2% of NPAT (non-recoverable) 3 0.2% of NPAT (non-recoverable) s
Total 25 25
2.5 Bonus Points
2.5.1 Graduation of one or more Enterprise Development beneficiaries to graduate to the Supplier Development level. 1 1
2.5.2 For creating one or more jobs directly as a result of Supplier Development and Enterprise Development initiatives by the measured entity. 1 1
2.5.3 Development of black stockbrokers, black fund managers and intermediaries 2 TBD 2 0.5% NPAT
Total Bonus Points 4 4
   
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