ABSIP WELCOMES AMENDED FINANCIAL SERVICES SECTOR CODE

Media Release
05 December 2017 

 

ABSIP WELCOMES AMENDED FINANCIAL SERVICES SECTOR CODE, SAYING IT PROMOTES A TRANSFORMED, VIBRANT AND GLOBALLY COMPETITIVE FINANCIAL SERVICES SECTOR

The Association of Black Securities and Investment Professionals (ABSIP) welcomes the gazetting of the Amended Financial Services Sector Code (FSC). The sector, working with members of the FSC Council, has had three years to align the FSC with that of the Generic Codes of Good Practice and the B-BBEE Act.

The FSC commits all financial sector participants to actively promote a transformed, vibrant and globally competitive financial sector that reflects the demographics of South Africa, and that contributes to the establishment of an equitable society by providing accessible financial services to black people and by directing investment into targeted sectors of the economy. These noble objectives will help in reducing inequality in South Africa on a sustainable basis.

The significant achievement in the FSC is the introduction of the Black Business Growth Funding initiative. This initiative which was largely driven by ABSIP will see a capital investment of between R25bn and R100bn over the next few years that could be invested in 75% Black Managed, 75% Black Owned and Women Owned Businesses. This investment will encourage sustainable and inclusive economic growth in South Africa.

ABSIP President, Sibongiseni Mbatha says the gazetting of the FSC codes epitomizes ABSIP’s hard-earned successes in the negotiation table. “Our endurance and determination to move the sector towards a fair, just and equitable state, coupled with the FSC Council’s openness to our relentless persuasion, is indeed something to celebrate at this moment in time. We share this milestone with the entire financial services sector, especially our members and sponsors.” Says Mbatha

“At the behest of ABSIP the FSC for the first time includes a voluntary Retirement Fund Scorecard with a view to make it mandatory following the review period. This has been a significant achievement for transformation in the financial sector that is well recognised as the least transformed sector in South Africa,” added Mbatha

The Retirement Fund Scorecard includes Umbrella Funds, Collective Investment Schemes funds and others. ABSIP has been actively working towards mandatory reporting of B-BBEE compliance and the reporting on the Retirement Fund Scorecard. Minister Rob Davies, requested that the FSC be reviewed and re-gazetted within twelve months to take into account the recommendations of the Parliamentary Hearings on Transformation in the Financial Sector. ABSIP calls on stakeholders to provide concise input to further changes required to the FSC.

‘The support from the dti and National Treasury, particularly the Minister and Deputy Minister, who is also our Patron, was humbling. However, we have not arrived at our ideal destination. Therefore, we will immediately insist on a review process to take into account recent recommendations of the Standing Committee on Finance and Portfolio Committee on Trade and Industry. The next codes must, therefore, take us closer to a transformed, inclusive and thriving financial sector by 2022”. Concludes Mbatha