The Financial Sector Transformation Council (“FSTC”) is mandated to enforce the Financial Sector Transformation Code (“the Code”), aimed at establishing a transformative, competitive financial services sector.
In terms of the Code, every entity conducting business in the South African financial services sector must report annually to the FSTC on its progress in implementing the provisions of the Code.
Financial institutions with an annual turnover of R50 million or more must have their B-BBEE status verified by a Verification Agent, who must submit a verification certificate together with the full verification report to the FSTC within 30 days of issuing the verification certificate.
Financial Institutions that meet the requirements of a Qualified Small Financial Institution (QSFI), i.e. has an annual turnover of more than R10 million but less than R50 million, and are more than 50% black owned (where there is an existing equity deal in place) or at least 51% black owned (for all deals concluded after the commencement date of the amended Code) or 100% black owned, should submit an affidavit confirming their annual turnover and B-BBEE status to the FSTC.
Exempted Micro Enterprises should submit the applicable affidavits confirming their annual turnover and level of black ownership on an annual basis.
Full, final verification reports must be submitted to the FSTC by close of business on Friday 5 June 2020 via e-mail at email@example.com with the subject ‘FSTC 2018/2019 Report – (name of entity)’.
Failure to do so may result in the institution being automatically discounted one B-BBEE level in the next rating period.