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a QSE entity where there are only 100 points available in terms of the DTI Codes.
For example, an entity which hopes to achieve a BEE level 5, would normally
require 75 points on its scorecard. If we apply the Amended Codes formula then BEE
we get the following result:
75/109 x 100 = 68.81

In this example, a QSE entity would only need to obtain 68.81 points to achieve
the level 5 result, showing that in this instance the formula provided the QSE
entity with a slightly easier target.

This formula is one of a number of changes brought about by the Amended
Codes. To calculate your BEE level as well as the planning that will be needed
to achieve your target BEE level, it is advisable that you consult with a BEE
specialist regarding the impact of the Amended Codes and changes that may
be needed to your BEE planning.

The Financial Sector BEE Charter sets custom
requirements for the sector

Marc Naude
March 2018

“My company operates in the short-term insurance environment. I understand
the new Financial Sector BEE Charter was published at the end of 2017 and
already applies. Is this correct and what changes has it introduced?”
The Financial Sector BEE Charter (“FSC”) was published on 1 December
2017 and is effective immediately, with no transitional period applicable. All
businesses operating within the South African financial sector, which includes
banks, short- and long-term insurers, stock exchange members and other
financial institutions, fall within this sector. The aim of the FSC is to promote a
transformed and globally competitive South African financial sector that reflects
the demographics of our country.

The FSC scorecard consists out of seven elements with two additional elements
over and above the five scorecard elements contained in the Generic
Department of Trade and Industry Codes of Good Practice (“Generic Codes”),
namely Empowerment Financing and Access to Financial Services. The main
focus of these additional two elements is to make financial services more
accessible to the previously un-banked and un-served. These elements only
apply to banks as well as short- and long-term insurers. Other enterprises within
the financial sector only have to comply with the other five scorecard elements.

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