The code is not yet finalised but this is a good summary of the whole scorecard. If you want a downloadable version take a look here
The Financial Services Sector Code (gazette no 35914)
The FSC was gazetted under section 9(1) of the B-BBEE Act on the 26th of November, 2012 and is binding on all stakeholders operating in the Financial Services Sector. This includes (but is not limited to)
-
Banking;
-
Long-term insurance;
-
Short-term insurance;
-
Re-insurance;
-
The management of retirement, pension and collective investment scheme assets;
-
Management of formal collective investment schemes;
-
Financial Services Intermediation and Brokerage;
-
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
-
Underwriting Management Agents.
It does not apply to the international trading operations of those entities who operate in South Africa.
The commencement date of the code is 1 January, 2012.
Definitions
-
Exempt Micro Enterprises (EMEs) – enterprises whose annual turnover falls below R5 million per year. These enterprises are exempt from any form of B-BBEE and are automatically level 4 contributors. EME's that are more than 50% black owned are level 3 contributors.
FSC Scorecards
Companies complying with Empowerment Financing
|
Element |
Points |
|
Ownership |
14 + 3 bonus |
|
Management Control |
8+ 1 bonus |
|
Employment Equity |
15 + 3 bonus |
|
Skills Development |
10 |
|
Preferential Procurement |
16 |
|
Empowerment Financing |
15 |
|
Enterprise Development |
5 |
|
Socio-economic Development |
3 |
|
Access to Financial Services |
14 |
|
TOTAL |
100 + 7 bonus points |
Companies excluded from complying with Empowerment Financing
|
Element |
Points |
|
Ownership |
14 + 3 bonus |
|
Management Control |
8+ 1 bonus |
|
Employment Equity |
15 + 3 bonus |
|
Skills Development |
10 |
|
Preferential Procurement |
16 |
|
Enterprise Development |
15 |
|
Socio-economic Development |
3 |
|
Access to Financial Services |
14 |
|
TOTAL |
95 + 7 bonus points |
complying with Empowerment Financing
QSFI's must select 5 out of the 9 elements with ownership being compulsory. Once the choice of elements is made these elements are used each year.
|
Element |
Points |
Weighting |
|
Ownership |
14 + 3 bonus |
20% |
|
Management Control |
8+ 1 bonus |
20% |
|
Employment Equity |
15 + 3 bonus |
20% |
|
Skills Development |
10 |
20% |
|
Preferential Procurement |
16 |
20% |
|
Empowerment Financing |
15 |
20% |
|
Enterprise Development |
5 |
20% |
|
Socio-economic Development |
3 |
20% |
|
Access to Financial Services |
14 |
20% |
|
TOTAL |
100 + 7 bonus points |
100% |
Companies excluded from complying with Empowerment Financing
QSFI's must select 5 out of the 9 elements with ownership being compulsory. Once the choice of elements is made these elements are used each year.
|
Element |
Points |
Weighting |
|
Ownership |
14 + 3 bonus |
20% |
|
Management Control |
8+ 1 bonus |
20% |
|
Employment Equity |
15 + 3 bonus |
20% |
|
Skills Development |
10 |
20% |
|
Preferential Procurement |
16 |
20% |
|
Enterprise Development |
15 |
20% |
|
Socio-economic Development |
3 |
20% |
|
Access to Financial Services |
14 |
20% |
|
TOTAL |
95 + 7 bonus points |
100% |
Contributors are measured using the table below.
|
Contribution Level |
B-BBEE score range |
Recognition level |
|
Level One Contributor |
≥ 100 points |
R1.35/R1 spent |
|
Level Two Contributor |
≥ 85 points but < 100 points |
R1.25/R1 spent |
|
Level Three Contributor |
≥ 75 points but < 85 points |
R1.10/R1 spent |
|
Level Four Contributor |
≥ 65 points but < 75 points |
R1/R1 spent |
|
Level Five Contributor |
≥ 55 points but < 65 points |
R0.80/R1 spent |
|
Level Six Contributor |
≥ 45 points but < 55 points |
R0.60/R1 spent |
|
Level Seven Contributor |
≥ 40 points but < 45 points |
R0.50/R1 spent |
|
Level Eight Contributor |
≥ 30 points but < 40 points |
R0.10/R1 spent |
|
Non-Compliant Contributor |
< 30 points |
R0/R1 spent |
FSC B-BBEE scorecard
Equity element
|
Ownership. Total points – 17 (including 3 bonus points) |
|||
|
Description |
Weighting points |
Compliance Target |
|
|
Voting rights |
|||
|
Exercisable voting rights in the enterprise in the hands of black people. |
3 |
25% + 1 Vote |
|
|
Exercisable voting rights in the enterprise in the hands of black women. |
1 |
10% + 1 Vote |
|
|
Economic interest |
|||
|
Economic interest of black people |
3 |
25% + 1 Vote |
|
|
Economic interest of black women |
1 |
10% + 1 Vote |
|
|
Economic interest of the following black natural people in the enterprise
|
1 |
2.5% |
|
|
Ownership Fulfilment |
|||
|
Net Equity Value |
3 |
No restrictions |
|
|
Direct or Indirect Ownership in Excess of 15% (including Equity Equivalents and Asset Sales) |
2 |
10% |
|
|
Bonus points |
|||
|
Black new entrants |
2 |
10% |
|
|
Ownership by ESOPs and Co-ops |
1 |
10% |
|
Management element
|
Management Control. Total points –9 (including 1 bonus point) |
|||
|
Description |
Weighting points |
Compliance Target |
|
|
Board participation |
|||
|
Voting rights of black board members as a percentage of voting rights of all board members |
0.5 |
50% |
|
|
Voting rights of black women board members as a percentage of voting rights of all board members |
0.5 |
25% |
|
|
Black executive members of the board as a percentage of all executive members of the board |
1 |
50% |
|
|
Black women executive members of the board as a percentage of all executive members of the board |
1 |
25% |
|
|
Top management |
|||
|
Black senior top management as a percentage of all senior top management |
1.5 |
40% |
|
|
Black women senior top management as a percentage of all senior top management |
1.5 |
20% |
|
|
Black other top management as a percentage of all other top management |
1 |
40% |
|
|
Black women other top management as a percentage of all other top management |
1 |
20% |
|
|
Bonus Point |
|||
|
Black independent non-executive board members as a percentage of all independent non-executive board members |
1 |
40% |
|
Employment Equity
|
Employment Equity. Total points – 18 (including 3 bonus points) |
||
|
Description |
Weighting points |
Compliance Target |
|
Black disabled employees as a percentage of ALL employees |
0.5 |
3% |
|
Black women disabled employees as a percentage of ALL employees |
0.5 |
1.5% |
|
Black senior management as a percentage of all senior management |
3 |
60% |
|
Black women senior management as a percentage of all senior management |
2 |
30% |
|
Black middle management as a percentage of all middle management |
3 |
75% |
|
Black women middle management as a percentage of all middle management |
2 |
37.5% |
|
Black junior management as a percentage of all junior management |
2 |
80% |
|
Black women junior management as a percentage of all junior management |
2 |
40% |
|
BONUS POINTS |
||
|
Bonus Point for meeting or exceeding the Economically Active Population (EAP) targets in senior management |
1 |
87.5% |
|
Bonus Point for meeting or exceeding the Economically Active Population (EAP) targets in middle management |
1 |
87.5% |
|
Bonus Point for meeting or exceeding the Economically Active Population (EAP) targets in junior management |
1 |
87.5% |
Skills Development
|
Skills Development. Total points – 10 |
|||
|
Description |
Weighting points |
Compliance Target |
|
|
Skills development expenditure on learning programmes specified in the Learning Programmes Matrix |
|||
|
Skills Development Expenditure on Learning Programmes specified in the Learning Programmes Matrix for Black employees as a percentage of the financial institution's leviable amount |
3 |
3% of payroll (3x SDL) |
|
|
Skills Development Expenditure on Learning Programmes specified in the Learning Programmes Matrix for Black Women employees as a percentage of the financial institution's leviable amount |
1.5 |
1.5% |
|
|
Skills Development Expenditure on Learning Programmes specified in the Learning Programmes Matrix for disabled Black employees as a percentage of the financial institution's leviable amount |
0.5 |
0.3% |
|
|
Skills Development Expenditure on Learning Programmes specified in the Learning Programmes Matrix for disabled Black Women employees as a percentage of the financial institution's leviable amount |
0.5 |
0.15% |
|
|
Learnerships |
|||
|
Number of Black employees participating in Learnerships or Category B, C and D Programmes as a percentage of total employees |
3 |
5% of staff |
|
|
Number of Black Women employees participating in Learnerships or Category B, C and D Programmes as a percentage of total employees |
1.5 |
2.5% |
|
Preferential Procurement
|
Preferential Procurement. Total points – 16 |
||
|
Description |
Weighting points |
Compliance Target |
|
B-BBEE procurement spend from all suppliers based on the B-BBEE procurement recognition levels as a percentage of total measured procurement spend |
8 |
70% |
|
B-BBEE procurement spend from all Qualifying Small Enterprises (QSEs) or from Exempted Micro-Enterprises (EMEs) based on the applicable B-BBEE procurement recognition levels as a percentage of total measured procurement spend |
3 |
15% |
|
B-BBEE procurement spend from any of the following suppliers as a percentage of total measured procurement spend |
||
|
Suppliers that are 50% Black owned |
2.5 |
12% |
|
Suppliers that are 30% Black Women owned |
2.5 |
8% |
Empowerment Financing and Enterprise Development
Enterprise Development for those exempted from Empowerment Financing
|
Enterprise Development. Total points – 15 |
||
|
Description |
Weighting points |
Compliance Target |
|
Qualifying ED contributions made by the measured entity as a percentage of the target |
15 |
3 % of Cumulative NPAT |
Empowerment Financing – Long Term Insurers
|
Empowerment Financing. Total points – 15 |
||
|
Description |
Weighting points |
Compliance Target |
|
Targeted Investments |
12 |
R27bn |
|
BEE Transaction Financing |
3 |
R15bn |
|
TOTAL FOR LONG TERM INSURANCE SECTOR |
15 |
R42bn |
Empowerment Financing – Banking Sector
|
Empowerment Financing. Total points – 15 |
||
|
Description |
Weighting points |
Compliance Target |
|
Targeted Investments Transformational Infrastructure Black SME Financing Black Agricultural Financing Affordable Housing |
12 |
R48bn |
|
BEE Transaction Financing |
3 |
R32bn |
|
TOTAL FOR BANKING SECTOR |
15 |
R80bn |
Enterprise Development for those needing to comply with Empowerment Financing
|
Enterprise Development. Total points –5 |
||
|
Description |
Weighting points |
Compliance Target |
|
Qualifying ED contributions made by the measured entity as a percentage of the target |
5 |
0.2 % of NPAT |
Socio-Economic Development
|
Socio-Economic Development. Total points – 3 |
||
|
Description |
Weighting points |
Compliance Target) |
|
Cumulative value of all Socio-Economic Development Contributions made by a financial institution as a percentage of the cumulative net profit after tax |
3 |
2012 = 0.75% of NPAT 2013 = 0.7% of NPAT 2014 = 0.6% of NPAT |
Socio-Economic Development (exempt from Access to Financial Services)
|
Socio-Economic Development. Total points – 3 |
||
|
Description |
Weighting points |
Compliance Target) |
|
Cumulative value of all Socio-Economic Development Contributions made by a financial institution as a percentage of the cumulative net profit after tax |
3 |
0.7% of NPAT |
Access to Financial Services (Banking Sector) – 14 points
|
Access Method |
Qualifying Market/area |
Points |
Qualifying Criteria |
Range |
Target |
|
|
1 |
Geographic Access (Reach) |
5 |
One or more of: |
|||
|
1.1 |
Transaction point |
50% or more of households falling within LSM 1-5 |
1 |
Draw cash or purchase from their accounts |
5km |
85% |
|
1.2 |
Service point |
1 |
Reset a pin, Money transfers, GET a statement and initiate account queries |
10km |
70% |
|
|
1.3 |
Sales point |
2 |
replace a card, deposit cash into their accounts, or acquire: a transaction account, a funeral policy, a savings account, or a loan. |
15km |
60% |
|
|
1.4 |
Electronic Access |
Individuals earning less than R5,000 per month increasing by CPIX p.a. |
1 |
TBC |
||
|
2 |
Banking Densification |
Individuals in the LSM 1-5 group nationally |
2 |
Access to cash withdrawal facility per measuring unit |
TBC |
1500 |
|
3 |
Product Related Access |
Individuals in the LSM 1-5 group nationally |
3 |
Number of active accounts for qualifying products per institution |
National |
TBC |
|
4 |
Affordable Housing Origination |
Qualifying measures as per metrics agreed |
2 |
Mortgage and development loans to qualifying households |
National |
TBC |
|
5 |
Consumer Education |
Qualifying individuals in the LSM 1-8 group |
2 |
Consumer, Primary and Basic Education |
National |
2012 = 0.25% 2013 = 0.3% 2014 = 0.4% |
Access to Financial Services (Short-Term Insurance Sector) – 14 points
|
Access to Financial Services |
Weighting |
Industry Targets |
|
|
Appropriate Products |
2 |
8 |
|
|
Insurance Policies |
10 |
Maximum sum insured: |
|
|
Motor vehicle |
6% |
R60k |
|
|
Household Contents |
6% |
R100k |
|
|
Property/Homeowners |
3% |
R350k |
|
|
Black SMEs – equipment contents |
15% |
R100k |
|
|
Black SMEs – premises |
10% |
R500k |
|
|
Agriculture |
6% |
TBD |
|
|
Livestock |
6% |
R600k |
|
|
Co-operatives |
6% |
TBD |
|
|
Consumer Education |
2 |
Year 1: 0.25% Year 2: 0.3% Year 4: 0.4% |