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GENERAL NOTICE
NOTICE OF 2015
(DEPARTMENT OF TRADE AND INDUSTRY)
CODES OF GOOD PRACTICE ON BROAD-BASED BLACK ECONOMIC
EMPOWERMENT
I, Dr Rob Davies, Minister of Trade and Industry, hereby:
(a) Issues for public comment, the REVIED !I"#"$I#% E$T&R $&DE as provided
for in $ode ''' tatement '' of the $odes of ood *ractice under ection +() of
the -road -ased -lac. Economic Empo/erment #mendment #ct (#ct "o0 12 of
3')4 and
(b) Invite interested persons and the public to submit comments on the code /ithin 2'
days from the date of this publication0
Interested parties are re5uested to for/ard their comments in /ritin6 for
attention0Enquiries: 012 394 3430
Dr Rob Daies!"#
"INI$TER OF TRADE AND IND%$TR& DATE: ''(''(15
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REVISED FINANCIAL SECTOR CODE
FINANCIAL SECTOR CODE FOR BLACK ECONOMIC EMPOWERMENT
PREAMBLE
This !inancial ector $ode (!$) has been prepared in terms of the -road7
based -lac. Economic Empo/erment #mendment (-7--EE) #ct (#ct 12 of
3'), subse5uently referred to as the #ct0 It is based on a harmonisation of
3' DTI $odes of ood *ractice ($o*) and the !inancial ector $ode
6a8etted under ection + () of the -EE #ct on the 32th "ovember 3'30
The !inancial ector $harter ($harter) came into effect in 9anuary 3''1 as a
result of a voluntary offer to develop a $harter by the financial sector at the"ational Economic Development and %abour $ouncil ("ED%#$) !inancial
ector ummit0 "ED%#$ is the multilateral social dialo6ue forum /hich brin6s
to6ether 6overnment, business, labour and community constituencies to
approve social, economic and labour mar.et policy0
!ollo/in6 the summit, the $harter /as drafted by the Trade #ssociations and
the #ssociation of -lac. ecurities and Investment *rofessionals (#-I*3),
/ith overnment actin6 as observers0 #lthou6h labour 1 and community
constituencies /ere not included in the draftin6 of the !inancial ector
$harter, they a6reed to participate in its 6overnin6 structure, the !inancialector $harter $ouncil, alon6side overnment, -usiness and #-I* to
finalise outstandin6 elements of the $harter and to participate in overseein6
the implementation of the $harter and the process for ali6nin6 the !inancial
ector $harter /ith the $o*0
1 The Association for Savings and Investment South Africa (ASISA); South African Insurance Association
(SAIA); International Banking Association (IBA); Banking Association of South Africa (BASA), JSE imited
! ABSI" re#resenting Black #rofessional organisations
$ The "residenc%, &ational Treasur% and 'e#artment of Trade and Industr%
ongress of South African Trade *nions (+SAT*); &ational ouncil of Trade *nions
(&AT*);ederation of *nions of South Africa (E'*SA)
5 Finan+ia, $e+-or Ca.)ai*n Coa,i-ion/ Disab,e #eo),e $ou- Ari+a/ Na-iona, Coo)era-ies Asso+ia-ion/ Te o.ens Na-iona, Coa,i-ion/ $A &ou- Coun+i,/ $A Cii+s Or*anisa-ion!
)* 2
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In the latest ali6nment process, all the !inancial ector $harter $ouncil
participants committed to developin6 a sector transformation code ali6ned to
the $o*, notin6 that:
Despite si6nificant pro6ress since the establishment of a democratic 6overnment in ++1, outh #frican society remains characterised by racially based income and social services ine5ualities0This is not only un;ust, but inhibits the country<s ability to achieve its full economic potential4
-7--EE is a mechanism aimed at addressin6 ine5ualities and mobilisin6 the ener6y of all outh #fricans0 It /ill contribute to/ards sustained economic 6ro/th, development and socialtransformation in outh #frica4
Ine5ualities also manifest themselves in the country<s financial sector0 # positive and proactiveresponse from the sector throu6h the implementation of -7--EE /ill further unloc. the sector<spotential, promote its 6lobal competitiveness and enhance its /orld class status4
E5ually, the financial stability and soundness of the financial sector and its capacity to facilitatedomestic and international commerce is central to the successful implementation of -7--EE0
The !inancial ector $ode commits all participants to actively promotin6 a
transformed, vibrant and 6lobally competitive financial sector that reflects the
demo6raphics of outh #frica, /hich contributes to the establishment of an
e5uitable society by providin6 accessible financial services to blac. people
and by directin6 investment into tar6eted sectors of the economy0
This !inancial ector $ode is the product of the interaction bet/een the Trade
#ssociations, #-I*, %abour, $ommunity and overnment0 The $ode reflects
the accord reached by all of the sta.eholders re6ardin6 their ;oint commitment
to fosterin6 -7--EE in the financial sector and in the outh #frican economy0
Key aspects of the Sector Code
Reco6nisin6 the uni5ue position financial institutions hold in the development
of outh #frica, t/o uni5ue elements e=ist in the scorecard over and above
the five elements that e=ist in the $o*0 These are Empo/erment !inancin6
and #ccess to !inancial ervices0 These elements are intended to broaden
and hasten the transformation process as they focus on ma.in6 financial
services accessible to the previously unban.ed and under7served0 They
empo/er the previously disenfranchised throu6h the provision of affordablehousin6, financin6 of blac. MMEs and a6ricultural activities, and investin6 in
various forms of transformational infrastructure that create the necessary
platform to 6ro/ the economy on an e5uitable basis0
The uni5ue elements are derived from similar initiatives, /hich /ere at the
core of the ori6inal !inancial ector $harter0 It is reco6nised that the ector
can better play a role in the creation of sustainable /ealth across a broad
base throu6h levera6in6 its uni5ue position in the allocation of resources from
savers to borro/ers in the economy0 In addition to achievin6 E5uity
&/nership tar6ets by means of sales of shares, as contemplated under $ode!'', tatement '' and ales of #ssets as contemplated under $ode
)* 3
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!'', tatement '3, measured entities are also entitled to achieve e5uity
o/nership points throu6h E5uity E5uivalent *ro6rammes as contemplated
under $ode !'', tatement '0 These E5uity E5uivalent contributions
represent the commitment of further resources to .ey developmental and
national focus areas includin6 but not limited to "ational Development *lan
("D*) ali6ned initiatives, Enterprise Development, Empo/erment !inancin6
and #ccess to !inancial ervices initiatives0
)* 4
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Scope of Application
This !$ applies to any natural or ;uristic person conductin6 a business,
trade or profession in the outh #frican financial sector, includin6, but not
limited to, the follo/in6:
0 -an.in64
30 %on67term insurance4
0 hort7term insurance4
10 Re7insurance4
0 The mana6ement of retirement, pension and collective investment scheme assets4
20 Mana6ement of formal collective investment schemes4
>0 !inancial ervices Intermediation and -ro.era6e4
?0 Venture $apitalists
+0 Mana6ement of investments on behalf of the public, includin6, but not limited to, privatee5uity, members of any e=chan6e licensed to trade e5uities or financial instruments inouth #frica and entities listed as part of the financial inde= of a licensed e=chan6e4 and
'0 @nder/ritin6 Mana6ement #6ents0
This !$ does not apply to:
0 "atural or ;uristic persons /ho do not have tradin6 operations in the Republic of outh #frica4
30 The tradin6 operations of natural or ;uristic persons outside the Republic of outh #frica4and
0 Mana6ers of investments on behalf of the public /ho are not sub;ect to re6ulation interms of the !inancial ervices -oard, for e=ample, money held in intermediate trusts byla/yers0
Status of this Code
It is recorded that the Minister of Trade and Industry has previously 6a8etted
the !inancial ector $ode as a ector $ode under ection +() of the #ct0
The !inancial ector $harter $ouncil is of the opinion that this ector $ode
meets all of the re5uirements of *ara6raph of $ode ''', tatement '' of the revised $o* and has applied to the Minister of Trade and Industry to
publish the Revised !inancial ector $ode under ection +() of the #ct to
allo/ for public comment and for 6a8ettin6 as a ector $ode under ection
+() of the #ct0
In conceptualisin6, implementin6 and measurin6 any -7--EE initiatives,
financial institutions and other interested parties must apply this Revised
!inancial ector $ode read to6ether /ith the $o* 6a8etted on A'A3'
issued under +() of the -7--EE #mendement #ct (#ct 12 of 3')0 Bhilst
the 6a8ettin6 under ection +() of the -EE #ct of this ector $ode meansthat it is bindin6 and ta.es precedence over any other $ode, includin6 the
)* 5
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$o*, the $o* is applicable only to the e=tent that this !inancial ector
$ode is silent on a particular aspect of -7--EE that is covered in the $o*0
&nce 6a8etted as a ector $ode under ection +() of the #ct, it shall remain
in effect until amended, substituted or repealed0 The commencement date of
the Revised !inancial ector cde /ill be 'st 9anuary 3'2
)* 6
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INDEX FOR THE REVISED FINANCIAL SECTOR CODE
Financia
S!c"#$ C#%!
S!$i!&
C#%! Ti"!
F$000
Fra.e7or8 or .easurin* roaase ,a+8 E+ono.i+
E.)o7er.en-
F$100
"easure.en- o -e O7nersi) E,e.en- o roaase ,a+8
E+ono.i+ E.)o7er.en-
F$200
"easure.en- o -e "ana*e.en- Con-ro, E,e.en- o roa
ase ,a+8 E+ono.i+ E.)o7er.en-
F$300
"easure.en- o -e $8i,,s Dee,o).en- E,e.en- o roaase
,a+8 E+ono.i+ E.)o7er.en-
F$400
"easure.en- o -e En-er)rise an $u)),ier Dee,o).en-
E,e.en- o roaase ,a+8 E+ono.i+ E.)o7er.en-
F$500
"easure.en- o -e $o+ioE+ono.i+ Dee,o).en- anConsu.er Eu+a-ion E,e.en- o roaase ,a+8 E+ono.i+
E.)o7er.en-
F$600
"easure.en- o -e E.)o7er.en- Finan+in* E,e.en- o roa
ase ,a+8 E+ono.i+ E.)o7er.en-
F$00
"easure.en- o -e A++ess -o Finan+ia, $eri+es E,e.en- o
roabase ,a+8 E+ono.i+ E.)o7er.en-
F$;00
"easure.en- o -e <ua,i=in* $.a,, Finan+ia, Ins-i-u-ions o
roaase ,a+8 E+ono.i+ E.)o7er.en-
)*
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In%!' #$ S"a"!!n"&
S"a"!!n"
N*+!$ Financia S!c"#$ C#%! S!$i!& an% S"a"!!n" Ti"!
000
Coe $eries
F$000 Genera, )rin+i),es an -e $+ore+ar
100
Coe $eries
F$100 Te Genera, )rin+i),es or .easurin* O7nersi)
102
Coe $eries
F$100 Re+o*ni-ion o -e $a,e o Asse-s
103
Coe $eries
F$100 Te re+o*ni-ion o Equi-= Equia,en-s
200
Coe $eries
F$200
Te *enera, )rin+i),es or .easurin* "ana*e.en-
Con-ro,
300
Coe $eries
F$300
Te *enera, )rin+i),es or .easurin* $8i,,s
Dee,o).en-
400
Coe $eries
F$400
Te *enera, )rin+i),es or .easurin* En-er)rise an
$u)),ier Dee,o).en-
401
Coe $eries
F$400
Te *enera, )rin+i),es or .easurin* En-er)rise an
$u)),ier Dee,o).en- or .easure en-er)rises
!'!,"!% ro. E.)o7er.en- Finan+in*
402 Coe $eriesF$400
Te *enera, )rin+i),es or .easurin* En-er)rise an
$u)),ier Dee,o).en- or .easure en-er)rises n#"!'!,"!% ro. E.)o7er.en- Finan+in*
500
Coe $eries
F$500
Te *enera, )rin+i),es or $o+io > E+ono.i+
Dee,o).en- an Consu.er Eu+a-ion
600
Coe $eries
F$600
Te *enera, )rin+i),es or .easurin* E.)o7er.en-
Finan+in*
00
Coe $eries
F$00
Te Genera, #rin+i),es or .easurin* A++ess -o
Finan+ia, $eri+es
01
Coe $eries
F$600
Te *enera, )rin+i),es or .easurin* A++ess -o
Finan+ia, seri+es as i- re,a-es -o "e.bers o -e
an8in* Asso+ia-ion o $ou- Ari+a
02Coe $eriesF$600
Te *enera, )rin+i),es or .easurin* A++ess -oFinan+ia, seri+es as i- re,a-es -o "e.bers o A$I$A
03
Coe $eries
F$600
Te *enera, )rin+i),es or .easurin* A++ess -o
Finan+ia, seri+es as i- re,a-es -o "e.bers o $AIA
00
Coe $eries
F$00
Te Genera, #rin+i),es or .easurin* $o+ioe+ono.i+
Dee,o).en-
;00
Coe $eries
F$;00
Genera, )rin+i),es an -e <ua,i=in* $.a,, Finan+ia,
Ins-i-u-ion ?<$FI@ $+ore+ar
;01
Coe $eries
F$;00
Te Genera, )rin+i),es or .easurin* O7nersi) or
<$FIs
;02
Coe $eries
F$;00
Te *enera, )rin+i),es or .easurin* "ana*e.en-
Con-ro, or <$FIs
)* ;
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;03
Coe $eries
F$;00
Te *enera, )rin+i),es or .easurin* $8i,,s
Dee,o).en- or <$FIs
;04
Coe $eries
F$;00
Te *enera, )rin+i),es or .easurin* En-er)rise an
$u)),ier Dee,o).en- or <$FIs
;05
Coe $eries
F$;00
Te Genera, #rin+i),es or .easurin* A++ess -o
Finan+ia, $eri+es or <$FIs
;06
Coe $eries
F$;00
Te Genera, #rin+i),es or .easurin* $o+ioe+ono.i+
Dee,o).en- or <$FIs
)* 9
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REVISED FINANCIAL SECTOR CODE SERIES FS.
FRAMEWORK FOR MEASURING BROAD-BASED BLACK ECONOMIC
EMPOWERMENT
STATEMENT . GENERAL PRINCIPALS AND THE GENERIC SCORECARD
I&&*!% *n%!$ &!c"i#n / (0) # "1! B$#a%-Ba&!% Bac2 Ec#n#ic E,#3!$!n" A!n%!n"
Ac" # 405
A$$an6!!n" # "1i& &"a"!!n".
Pa$a S*+7!c" Pa6!
1! Obe+-ies O Tis $-a-e.en-!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!9
2! Be= #rin+i),es!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!9
3! A)),i+a-ion o -e Finan+ia, $e+-or Coes!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!11
4! E,i*ibi,i-= as an E'e.)-e "i+ro En-er)rise ?E"E@!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!13
5! E,i*ibi,i-= as a <ua,i=in* $.a,, Finan+ia, Ins-i-u-ions ?<$FI@!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!14
6! $-ar-%) En-er)rises!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!15! Te E,e.en-s o EE in Ter.s o Te $+ore+ar!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!15
;! Te F$C $+ore+ar!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!16
9! Enan+e Re+o*ni-ion or Cer-ain Ca-e*ories o ,a+8 #eo),e!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1
10! Transi-iona, #erio!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1;
11! Aus-.en- o Treso,s!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1;
12! Dura-ion o Te F$C!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1;
13! In-er)re-ie Guies ( Guian+e No-es ( #ra+-i+e Dire+-ies an $-anars Do+u.en-s!!!!!!!!!19
Objecties of this State!ent
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1!1 $)e+i= -e in-er)re-a-ie )rin+i)a,s o roaase ,a+8 E+ono.i+ E.)o7er.en- ?
EE@
1!2 $)e+i= -e a)),i+a-ion o -e Coes an -e basis or .easure.en- uner -e Coes/
1!3 Ini+a-e -e qua,i=in* -reso, or "easure En-i-= -o qua,i= as E'e.)-e "i+ro
En-er)rises ?E"E@ or <ua,i=in* $.a,, Finan+ia, Ins-i-u-ions ?<$FI@/
1!4 $)e+i= -e .e-o o .easurin* $-ar-%) En-er)rises/
1!5 $)e+i= -e e,e.en-s o EE .easurab,e uner -e Generi+ $+ore+ar an <ua,i=in*
$.a,, Finan+ia, Ins-i-u-ions $+ore+ar
1!6 $)e+i= -e Generi+ $+ore+ar an <ua,i=in* $.a,, Finan+ia, Ins-i-u-ions $+ore+ar!
1! $)e+i= -e basis or e-er.inin* +o.),ian+e b= En-i-ies 7i- -e Finan+ia, $e+-or Coes/
an
1!; Gie -e Finan+ia, $e+-or Coun+i, -e )o7er -o )roie In-er)re-ie ( Guian+e ( #ra+-i+eDire+-ies an $-anars o+u.en-s 7i- re*ar -o -e a)),i+a-ion in-en-ion an an=
+,arii+a-ion require sou, an= a.bi*ui-ies e'is- in an= )ar- o -is Finan+ia, $e+-or
Coe!
" Key Principles
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30The fundamental principle for measurin6 -7--EE compliance is that
substance ta.es precedence over le6al form0
303 In interpretin6 the provisions of the $o* and this !inancial ector $ode
any reasonable interpretation consistent /ith the ob;ectives of the #ct
and the -7--EE trate6y must ta.e precedence0
30The basis for measurin6 -7--EE initiatives under the !$:
300 for the C&/nership< and CMana6ement $ontrol< elements the -7--EEcompliance of the Measured Entity at the Date of Measurement4 and
3003 for the C.ills Development<, CEnterprise and upplier Development<,C#ccess<, CEmpo/erment !inancin6< and Cocio EconomicDevelopment< elements the -7--EE compliance of the MeasuredEntity over the Measurement *eriod0
301#ny misrepresentation or attempt to misrepresent a Measured Entity<s
true -7--EE tatus /ill be dealt /ith in accordance /ith the provisions
as set out in the #ct, and may lead to the dis5ualification of the entire
scorecard of the entities concerned0
30 Initiatives /hich split, separate or divide enterprises solely as a means of
ensurin6 eli6ibility as an E=empted Micro7Enterprise or a ualifyin6
mall !inancial Institution or a tart7up Enterprise are a circumvention of
the #ct and /ill be dealt /ith in accordance /ith the provisions as set out
in the #ct, and may lead to the dis5ualification of the entire scorecard of
the entities concerned0
302Bhen determinin6 eli6ibility as an E=empted Micro7Enterprise, a
ualifyin6 mall !inancial Institution or a %ar6e Enterprise, only the
outh #frican Revenue of the Measured Entity /ill be considered, unless
the Measured Entity is see.in6 a consolidated verification inclusive of its
subsidiaries0 The a66re6ate Revenue of Related Enteprises /ill only be
considered as per par >0 to >02 of #pppendi= 3 of the Verification
Manual (a8etted 3, ? 9uly 3''?) as amended /here:
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3020 an intent to defraud as per 30 above is present4 or /here
30203 a holdin6 entity that does not house the operations of the 6roup is
measured eparately030>#ny representation made by an Entity about its -7--EE compliance
must be supported by uitable Evidence or Documentation0 # Measured
Entity that does not provide uitable Evidence or Documentation
supportin6 any initiative must not receive any reco6nition for that
initiative0
30?Bherever a tandard Valuation Method applies to measurin6 an
indicator, the same standard should apply, as far as reasonably possible,
consistently in all other applicable calculations in this !$0
30+The measurement of @nincorporated 9oint Ventures /ill be done as
follo/s:
30+0 @nincorporated 9oint Ventures are re5uired to compile a consolidatedverification certificate0 # consolidated verification certificate /ill
consolidate the verified compliance data of ;oint venture partners inaccordance /ith para6raph 30+03 belo/ as if those Measured Entities/ere a sin6le Measured Entity0
30+03 The consolidation of compliance data shall be based on a /ei6htin6 inaccordance /ith the ;oint venture a6reement relevant to the specific ;oint venture0 Therefore, should t/o companies enter into an@nincorporated 9oint Venture their respective scores in terms of the!$ /ill be /ei6hted accordin6 to their proportionate share in the ;ointventure and added to6ether for a combined score out of ''0
30' Bhere all the partners in the ;oint venture are Empo/erin6 uppliersthe @nincorporated 9oint Venture /ill also 5ualify as an Empo/erin6upplier0 If not, the compliance of the @nincorporated 9oint Venture/ith the Empo/erin6 upplier re5uirements must be measured asthou6h it is a sin6le Measured Entity /ith each partner contributin6, tothe cate6ories of measurement for Empo/erin6 upplier status, inproportion to its share in the ;oint venture0
30 Bhere the !inancial ector $ode is silent on certain provisions, the
provisions of the eneric $ode shall ta.e precedence0
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303 In 6eneral, a financial institution that is a local subsidiary of a
multinational or e=ternal company (as defined in ection of the
$ompanies #ct (#ct 2 of +>, as amended, repealed or superseded))or a branch of a multinational or e=ternal company that is precluded in
terms of a lobal *olicy from accommodatin6 domestic o/nership
participation, /ill be e=empt from the o/nership provisions of $ode
!''0
30 The -7--EE compliance level of an institution /hich has been
e=empted from compliance /ith any element or sub7element must be
determined by addin6 its actual points earned for each of the remainin6
scorecard elements0 The -7--EE compliance level shall be the sum of
the actual points earned divided by the total amounts available to it (that
is, the scorecard total less e=empted elements)0
301 #ll scores achieved by the financial institutions under the scorecards
in *ara6raph ?0 of $ode !''' and $ode !?'' must be used to
determine the compliance level in line /ith para6raph ?030 of $ode!'''0
30 The verification of -7--EE compliance of financial institutions /ill be
underta.en by -7--EE verification professionals as determined by the
#ct0
# Application of the Reised $inancial Sector Code
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0This !inancial ector $ode is applicable to all entities as defined under
the para6raph titled, Fcope of #pplicationG under the *reamble ection
of this document
03The basis for measurin6 the -7--EE compliance of an Entity in terms of
para6raph 0 is:
030 *ara6raph 1, in the case of an E=empted Micro7Enterprise4
0303 The eneric corecard and !I corecard in para6raph ?, in thecase of other Measured Entities0
030 # Measured Entity in a sector in respect of /hich a sector code hasbeen issued in terms of ection + of the #ct, may only be measuredfor compliance in accordance /ith that code0
0*riority Elements, ubminimum and Discountin6 *rincipal
00 The priority Elements are as follo/s:
000 &/nership:The sub7minimum re5uirement for &/nership is 1'H
of "et Value (1'H of the 3 points) based on the Time -ased raduation
!actor provided in #nne=e '' (E)0
0003 .ills Development: The sub7minimum re5uirement for .ills
Development is 1'H of the total /ei6htin6 points (1'H of the points)
(e=cludin6 bonus points) for .ills Development0
000 Enterprise and upplier Development: The sub7minimum for
Enterprise and upplier Development is 1'H of the total /ei6htin6 points
(e=cludin6 bonus points) of each of the three broad cate6ories, /ithin the
Enterprise and upplier Development element, namely *referential
*rocurement4 upplier Development and Enterprise Development0
upplier and Enterprise Development is not applicable in this element for
companies doin6 Empo/erment !inancin60 !or the avoidance of doubt
this means that the Measured Entity must achieve at least:
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a@ For +o.)anies !'!," ro. E.)o7er.en- Finan+in*
?i@ ; )oin-s uner -e #reeren-ia, #ro+ure.en- +a-e*or=/
?ii@ 4 )oin-s uner -e $u)),ier Dee,o).en- +a-e*or=/
?ii@ 2 )oin-s uner -e En-er)rise Dee,o).en- +a-e*or=/
b@ For +o.)anies n#" !'!," ro. E.)o7er.en- Finan+in*
?i@ 6 )oin-s uner -e #reeren-ia, #ro+ure.en- +a-e*or=/
)* 16
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0001 Empo/erment !inancin6 and Enterprise and upplier
Development: The sub7minimum for Empo/erment !inancin6 and
Enterprise and upplier Development is 1'H of the total /ei6htin6 points(e=cludin6 bonus points) of each of the three broad cate6ories, /ithin the
element, namely Empo/erment !inancin64 upplier Development and
Enterprise Development0
#%#%" Co!pliance to Priority Ele!ents&
0030 # %ar6e Enterprise is re5uired to comply /ith all the *riorityElements (e=cept /here they are e=empted from that element)4
00303 # ualifyin6 mall !inancial Institution is re5uired to comply /ith&/nership as a compulsory element, and either .ills Developmentor Enterprise and upplier Development0
#%#%# 'iscountin( Principle Effect&
000 "on7compliance /ith the 1'H sub7minimum re5uirements of any of the priority elements, as per para6raph 0 above, /ill result in the
follo/in6 outcomes for both %ar6e Enterprises and ualifyin6 mall!inancial Institutions:
0000The actual points scored by the Measured Entity and the conse5uent level that
the Measured Entity /ould have achieved /ere it not for non7compliance /ith the
1'H sub7minimum re5uirements /ill be reco6nised by the Verification #6ency
(Fthe -7--EE tatus %evelG)4
00003"ot/ithstandin6 the reco6nition in 0>0 above, the Measured Entity<s -7--EE
tatus %evel and correspondin6 -7--EE Reco6nition %evel /ill be discounted byone level do/n until the ne=t applicable verification period in /hich the Measured
Entity can demonstrate compliance /ith the 1'H sub7minimum re5uirements, at
/hich point the recorded %evel /ill become the applicable ratin6s level for that
Measured Entity in that verification period0
0003 !or the avoidance of doubt, if the Measured Entity fails to achieve the sub7
minimum re5uirements in one or more of the *riority Elements a ma=imum
discount of one level /ill be applied0
)* 1
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001 $ompliance /ith Employment E5uity #ct
010 eneric and ualifyin6 mall !inancial Institutions that are not
classified as Desi6nated Employers under the Employment E5uity #mendment #ct (#ct no01> of 3') are not re5uired to submit reportsto the Department of %abour0 o/ever, for the purpose of measurement they are re5uired to submit sufficient evidence for verification purposes0
0103 !or the avoidance of doubt, compliance /ith the reportin6re5uirements of the Employment E5uity #mendment #ct (#ct no01> of 3'), is not a pre7re5uisite for claimin6 points under the Mana6ement$ontrol element as lon6 as the Measured Entity is able to submit
sufficient evidence for verification purposes to support its claim under that element0
Eli(ibility as an E*e!pted Micro Enterprise +EME,
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10#ny enterprise /ith a total annual Revenue of R' Million or less
5ualifies as an E=empted Micro7Enterprise0
103#n E=empted Micro7Enterprise is deemed to have a -7--EE tatus of
F%evel !our $ontributorG havin6 a -7--EE reco6nition level of ''H
under para6raph ?030
10Enhanced -7--EE reco6nition level for an E=empted Micro7Enterprise:
100 Despite para6raphs 103 an EME /hich is ''H -lac. &/ned 5ualifiesfor elevation to F%evel &ne $ontributorG havin6 a -7--EE reco6nition
level of H01003 Despite para6raph 103 and 100, an EME /hich is more than 50%
-lac. &/ned 5ualifies for elevation to F%evel T/o $ontributorG havin6a -7--EE reco6nition level of 3H0
101Despite para6raphs 103 and 10, an EME is allo/ed to be measured in
terms of the !I scorecard should they /ish to ma=imise their points
and move to a hi6her -7--EE reco6nition level0
10#n EME is only re5uired to obtain a s/orn affidavit on an annual basis,
confirmin6 the follo/in6:
100 Total annual Revenue of R' million or less4 and
1003 %evel of -lac. o/nership0
102#ny misrepresentation in terms of *ara 10 above constitutes a criminal
offence as set out in the #ct0
10>"ot/ithstandin6 para6raph 10 an EME may elect to obtain a verification
certificate from an accountin6 officer or verification professional
approved in terms the #ct
Eli(ibility as a -ualifyin( S!all $inancial .nstitutions +-S$.,
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0# Measured Entity /ith desi6nated investments of less than R2' million
and total annual Revenue of more than R' million but less than R'
million 5ualifies as a ualifyin6 mall !inancial Institution (!I)0
03# !I must comply /ith all of the elements of -7--EE for the purposes
of measurement, unless e=empted from compliance /ith any element or
sub7element0
0Enhanced -7--EE reco6nition level for !I:
00 ualifyin6 mall !inancial Institution, /hich is ''H, -lac. &/ned
5ualifies for a %evel &ne -7--EE reco6nition0003 # !I, /hich is more than 'H -lac. &/ned 5ualifies for a %evel
T/o -7--EE reco6nition level0
01 # !I that is more H -lac. &/ned or ''H -lac. &/ned is onlyre5uired to obtain a s/orn affidavit on an annual basis, confirmin6 thefollo/in6:
010 Total annual Revenue of R' million or less4 and
0103 %evel of -lac. o/nership4 and
010 Empo/erin6 upplier status0
0101 #ny misrepresentation in terms of *ara 0 above constitutes a
criminal offence as set out in the #ct0
0"ot/ithstandin6 para6raph 0 a !I that is more tha 'H -lac.
&/ned or ''H -lac. &/ned may elect to obtain a verification
certificate from a verification professional0 !or the avoidance of doubt,
all !I<s other than those referred to in para6raph 00 and /ho elects
to be measured, /ill be re5uired to obtain a verification certificate to
substantiate their -7--EE status0
)* 20
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Start0p Enterprises
20# tart7@p Enterprise must be measured as an E=empted Micro7
Enterprise under this statement for the first year follo/in6 the
commencement of its operations0 This provision applies re6ardless of
the e=pected total Revenue of the tart7@p Enterprise0
203# tart7up Enterprise is deemed to have the 5ualifyin6 -7--EE tatus in
accordance /ith the principles of para6raph 1 of this tatement0
20 In order to 5ualify as a tart7up Enterprise, the enterprise must provide
confirmation of its status in accordance /ith para6raph 100
201Despite para6raph 20 and 203, a tart7up Enterprise must submit a
!I scorecard /hen tenderin6 for any contract, or see.in6 any other
economic activity covered by ection ' of the #ct, /ith a value hi6her
than R' million but less than R' million0 !or contracts of R' million or
more they must submit the eneric scorecard0 The preparation of such
scorecards must use annualised data0
3he Ele!ents of B0BBEE in 3er!s of the Scorecard
>0The &/nership Element, as set out in $ode series !'', measures
effective o/nership of entities by -lac. *eople0
>03The Mana6ement $ontrol element, as set out in $ode series !3'',
measures the effective control of entities by -lac. *eople0
)* 21
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>0The .ills Development element, as set out in $ode series !'',
measures the e=tent to /hich employers carry out initiatives desi6ned to
develop the competencies of -lac. Employees and -lac. *eopleinternally and e=ternally0
>01The Enterprise and upplier Development element, as set out in $ode
series !1'', measures the e=tent to /hich entities buy 6oods and
services from Empo/erin6 uppliers /ith -7--EE reco6nition levels0
This element also measures the e=tent to /hich enterprises carry out
supplier development and enterprise development initiatives intended to
assist and accelerate the 6ro/th and sustainability of blac. enterprises0
>0The ocio7Economic Development and ector pecific $ontributions
element, as set out in $ode series !'', !2'' and !>'', measures
the e=tent to /hich entities carry out initiatives that contribute to/ards
ocio7Economic Development or sector specific initiatives that promote
access to the economy for -lac. *eople0
)* 22
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3he Reised $inancial Sector Code Scorecard
?0eneric corecard
Te o,,o7in* -ab,e re)resen-s -e EE Generi+ $+ore+ar -o be use or Lar*e en-i-ies!
ELEMENT
WEIGHTING
Ban2&
an% Li!
#ic!&
&c#$!ca$%
S1#$"
T!$
In&*$!$&
&c#$!ca$%
O"1!$
In&"i"*"i#n&
&c#$!ca$%
C#%! S!$i!&
R!!$!nc!OWNERSHIP 20 20 20 F$100
MANAGENT CONTROL 20 20 20 F$200
SKILLS DEVELOPMENT 15 15 15 F$300
PROCUREMENT an% ESD 15 35 35 F$400
EMPOWERMENT
FINANCING an% ESD25 0 0 F$500
ACCESS 12 12 0 F$600
SOCIO ECONOMIC
DEVELOPMENT5 5 5 F$00
TOTAL 004 08 /9
)* 23
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?03-7--EE Reco6nition %evels
?030 -ased on the overall performance of a Measured Entity usin6 theeneric corecard and ualifyin6 mall !inancial Institutioncorecard, the Measured Entity /ill received one of the follo/in6 -7--EE tatus uses /ith the correspondin6 -7--EE reco6nition level:
B-BBEE S"a"*& : ;*aiica"i#nB-BBEE
R!c#6ni"i#n L!<!
Lee, One Con-ribu-or 92 135
Lee, T7o Con-ribu-or ; bu- 92 125
Lee, Tree Con-ribu-or ;3 bu- ; 110
Lee, Four Con-ribu-or 3 bu- ;3 100
Lee, Fie Con-ribu-or 69 bu- 3 ;0
Lee, $i' Con-ribu-or 64 bu- 69 60
Lee, $een Con-ribu-or 50 bu- 64 50
Lee, Ei*- Con-ribu-or 3 bu- 50 10
NonCo.),ian- Con-ribu-or 3 0
)* 24
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5 Enhanced Reco(nition for Certain Cate(ories of Blac6 People
+0Throu6hout the $odes, various criteria appear /hich advance the
interests of certain cate6ories of -lac. *eople0 These include:
+00 -lac. /oman, should form bet/een 1'H and 'H of the beneficiariesof the relevant Elements of the scorecard4
+003 -lac. people /ith disabilities, -lac. youth, -lac. people livin6 in ruralareas and -lac. unemployed people form part of the beneficiaries of the relevant Elements of the corecard0
17 3ransitional Period
'0 It /ill ta.e some time until all sector codes are ali6ned to the Revised
$odes and even then for all Measured Entities to have been measured
in terms thereof or the Revised $odes and ector $odes0 Therefore,
Measured Entities, that are measurable in terms of the Revised !$,
may in the interim accept valid verification certificates and compliance
reports for contributors to their scorecard that /ere conducted in terms of
the previous $odes or any old sector code, for as lon6 as they are valid0
!or this purpose the follo/in6 terms in the &ld $odes /ill contribute to
measurement in terms of the Revised !$ as thou6h they e5uated to
the correspondin6 Revised !$ terms in the table belo/:
A!n%!% C#%!& "!$ E=*i<a!n" O% C#%!& "!$
E"E E"E
<$E <$E
51 ,a+8 O7ne 50 b,a+8 o7ne
51 ,a+8 o.en O7ne 50 b,a+8 7o.en o7ne
30 ,a+8 o.en O7ne 30 b,a+8 7o.en o7ne
E.)o7erin* $u)),ier Ha,ue Ain* $u)),ier
En-er)ise $u)),ier Dee,o).en-
enei+iaries
Ca-e*or= A En-er)rise Dee,o).en-
enei+iaries
)* 25
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11 Adjust!ent of 3hresholds
0 The Minister may, by notice in the a8ette, ad;ust the thresholds in
para6raphs 1 to 20 #ny such chan6es apply to compliance reports of
Measured Entities prepared for Measurement *eriods that commences
after the 6a8ettin6 of the ad;ustment0
1" 'uration of the Reised $SC
30 The Revised !inancial ector $ode shall be effective from the 'st
9anuary 3'2 and remains in effect until e=pressly amended, substituted
or repealed under ection + of the #ct0
303 #ny amendments to the DTI $odes may result in a revie/ of the
Revised !inancial ector $ode for purposes of ali6nment0 The process
for the amendment of the Revised !inancial ector $ode /ill follo/ the
process set out in the DTI $odes for the development of ector $odes0
30 The Minister may revie/ the $odes at any sta6e, and re6ular revie/s
/ill ta.e place to monitor the implementation of -7--EE throu6hout the
economy0
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1# .nterpretie 8uides 9 8uidance :otes 9 Practice 'irecties and Standards'ocu!ents
0 The !inancial ector $ouncil shall, from time, to time issueInterpretiveA uidanceA *ractice Directives and tandards documents0
03 These documents shall be mainly (but not solely) for the purpose of
addressin6 any ambi6uities that may e=ist /ith re6ard to the
interpretation and application of .ey measurement principles andAor
5ualifyin6 criteria contained in any $ode eries or $ode tatement in
this !inancial ector $ode0
0 In issuin6 such documents the $ouncil shall be obli6ed to provide
interpretations that are consistent /ith the substance of these codes
rather than ;ust the le6al form0
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REVISED FINANCIAL SECTOR CODE SERIES FS0. MEASUREMENT OF THE
OWNERSHIP ELEMENT OF BROAD-BASED BLACK ECONOMIC EMPOWERMENT
STATEMENT FS0. THE GENERAL PRINCIPALS FOR MEASURING OWNERSHIP
I&&*!% *n%!$ &!c"i#n / (0) # "1! B$#a%-Ba&!% Bac2 Ec#n#ic E,#3!$!n" A!n%!n"
Ac" # 405
Arran(e!ent of this state!ent
No #ara*ra) #a*e
1! Obe+-ies o -is $-a-e.en-!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!21
2! Te O7nersi) $+ore+ar!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!21
3! Be= "easure.en- #rin+i),es!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!22
4! roabase O7nersi) an E.),o=ee O7nersi) $+e.es!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2
5! #ria-e Equi-= Funs!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2
6! Non #roi- Co.)anies an Co.)anies Li.i-e b= Guaran-ee!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2;
! Trus-s!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2;
;! O)-ions an sare 7arran-s!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!29
9! Equi-= Ins-ru.en-s Carr=in* #reeren-ia, Ri*-s!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!29
10! Ne- Ha,ue!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!29
11! Te #oin-s or Dire+- or Inire+- O7nersi) in e'+ess o 15 in Tab,e 2a!!!!!!!!!!!!!!!!!!!!!!!!!!!!3012! Te onus #oin-s!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!30
Anne'e F$100 ?A@JJJJJJJJJ!!JJJJ!!!JJJJJJJJJJ!!
JJJJ31
Anne'e F$100 ?9@
1! Ru,es or roaase O7nersi) $+e.es!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!32
2! Ru,es or E.),o=ee $are O7nersi) $+e.es!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!32
3! Ru,es or Trus-s!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!33
4! Ai-iona, Cri-eria A)),i+ab,e -o Trus-s:!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!335! Ai-iona, Cri-eria A)),i+ab,e -o roabase O7nersi) $+e.es an E.),o=ee
O7nersi) $+e.es:!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!34
Anne'e F$100?C@
JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ!35
)*! 2;
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1 Objecties of this State!ent
The ob;ectives of this statement are to:
00 pecify the scorecard for measurin6 the &/nership Element of -road7
-ased -lac. Economic Empo/erment (-7--EE)4
03Define the .ey measurement principles associated /ith the &/nership
Element of - --EE4
0pecify the specific measurement principles applicable to various types
of Enterprises4
01pecify the specific measurement principles applicable to various types
of E5uity Instruments4 and
0pecify the formula for measurin6 Votin6 Ri6hts, Economic Interest, "et
Value *oints, Realisation *oints and -onus *oints0
1% 3he O;nership Scorecard
Table 3a represents the indicators and method for calculatin6 a score for
o/nership for local measured entities:
D!&c$i,"i#n P#in"& Ta$6!"
2!12!1!1
E'er+isab,e Ho-in* Ri*-s in -e "easure En-i-= in -e anso ,a+8 )eo),e
4 25K 1 Ho-e
2!1!2E'er+isab,e Ho-in* Ri*-s in -e "easure En-i-= in -e anso ,a+8 o.en
2 10
2!2
2!2!1E+ono.i+ In-eres- Ri*-s in -e "easure En-i-= -o 7i+,a+8 )eo),e are en-i-,e
3 25
2!2!2E+ono.i+ In-eres- Ri*-s in -e "easure En-i-= -o 7i+,a+8 o.en are en-i-,e
2 10
2!2!3
E+ono.i+ In-eres- in -e ans ,a+8 Desi*na-e Grou)s/,a+8 )ar-i+i)an-s in E.),o=ee $are O7nersi)#ro*ra..es/ ,a+8 )eo),e in roabase O7nersi)$+e.es an ,a+8 #ar-i+i)an-s in Coo)era-ies
3 3
2!2!4 Ne7 En-ran-s 3 2
2!3 Ne- Ha,ue 3 For.u,a
T#"a B!#$! +#n*& 4
)*! 29
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2!4 onus: Dire+- ( Inire+- o7nersi) in e'+ess o 15 3 10
2!5 onus: E+ono.i+ In-eres- an Ho-in* Ri*-s aboe 25 2 1 32!5 an1 40
Table 2.a If a measured entity wishes to claim ownership credits for indirect ownership it must provide a competent persons report that has
estimated the value of BEE ownership held through indirect ownership.
Table 3b represents the indicators and method for calculatin6 a score for
o/nership for measured entities that are local branches of forei6n ban.s:
O3n!$&1i, W!i61"in6 Ta$6!"& N#"!&
2!1
Ai-iona, ,a+8 Inus-ria,
Finan+in* or o-er qua,i=in*
Equi-= Equian,en- Con-ribu-ions 16 25
Tar*e- is equa, -o 25 o
-e a,ue o -e "easure
En-i-= as a- 31(12(2010
onus #oin-s
2!2
Funin* o ,a+8 Inus-ria,Finan+in* or o-er qua,i=in*
Equi-= Equian,en- Con-ribu-ions
in -e Finan+ia, $e+-or 3 25Table 2b
)*! 30
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"% Key Measure!ent Principles
0eneral principles:
1%1%1 #n Enterprise receives points for participation by blac. people in itsri6hts of o/nership, usin6 the o/nership scorecard in *ara6raph 3aor 3b of this Revised !inancial ector $ode statement0 -lac. peoplemay hold their ri6hts of o/nership in a Measured Entity as direct*articipants or as *articipants throu6h some form of business suchas:
1%1%1%1 # company /ith shares4
1%1%1%" # close corporation4
1%1%1%# # co7operative41%1%1%) #ny form of ;uristic person reco6nised under outh #frican la/4
1%1%1%< # partnership or other association of natural persons4
1%1%1%/ # -road7-ased &/nership cheme4
1%1%1%2 #n Employee &/nership cheme4 and
1%1%1%4 Trust (includin6 a !amily Trust, /ill 5ualify provided that the Trustdeed stipulates that the beneficiaries must be -lac. outh #fricansand that at least ?H of the proceeds of the Trust accrues to the
beneficiaries)0
1%1%" #ny Measured Entity (!orei6n or Domestic) may also receive pointsunder the &/nership corecard in *ara6raphs 3a or 3b, via E5uityE5uivalent $ontributions0 E5uity E5uivalent $ontributions are dealt/ith in detail under $ode !'', tatement '0
1%1%# #ny Measured Entity may also receive points under the &/nershipcorecard in *ara6raphs 3a or 3b via ales of #ssets0 ales of
#ssets are dealt /ith in detail under !$ode '', tatement '30
03ub7minimum Re5uirements
030 # Measured Entity is re5uired to achieve a minimum of 1'H of the"et Value points (i0e0 03 points) based on #nne=e '' ( E)para6raph 1 of this statement0
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0303 "on7compliance /ith this sub7minimum tar6et, as per para6raph 030,/ill result in the achieved -7--EE status level bein6 discounted inaccordance /ith para6raph 0> in statement !'''0
0The !lo/7Throu6h *rinciple:
00 #s a 6eneral principle, /hen measurin6 the ri6hts of &/nership of anycate6ory of -lac. people in a Measured Enterprise, only ri6hts held bynatural persons are relevant0 If the ri6hts of &/nership of -lac. peoplepass throu6h a ;uristic person, then the ri6hts of &/nership of -lac.people in that ;uristic person are measurable0 This principle appliesacross every tier of o/nership in a multi7tiered chain of o/nership until
that chain ends /ith a -lac. person holdin6 ri6hts of &/nership0
003 #n e=ception to this eneral *rinciple e=ists /ith re6ard to reco6nitionunder the &/nership corecard for domestic measured entities viaE5uity E5uivalents0 This e=ception to the eneral *rinciple is dealt/ith in further detail in $ode !'', tatement '0
00 The method of applyin6 the !lo/7Throu6h *rinciple across one or more intervenin6 ;uristic persons is as follo/s:
000 Multiply the percenta6e of the participants ri6hts of &/nership in the
;uristic persons throu6h /hich those ri6hts pass by the percenta6eri6hts of &/nership of each of those ;uristic persons successively tothe Measured Enterprise4 and
0003 The result of this calculation represents the percenta6e of ri6hts of &/nership held by the *articipant0
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01The Modified !lo/7Throu6h *rinciple:
010 The Modified !lo/7Throu6h *rinciple applies to any -EE o/ned or controlled company in the o/nership of the Measured Enterprise0
0103 In calculatin6 E=ercisable Votin6 Ri6hts under *ara6raph 300 andEconomic Interest under *ara6raph 3030, the follo/in6 applies:
010 Bhere in the chain of &/nership, -lac. people have a flo/7throu6hlevel of participation in e=cess of 'H, then only once in that chainmay such -lac. participation be treated as if it /ere ''H -lac.0
0101 The Modified !lo/7Throu6h *rinciple may only be applied in thecalculation of the indicators in *ara6raphs 300 (Votin6 ri6hts of -lac.
*eople) and 3030 (Economic Interest of -lac. *eople) of table 3a0 Inall other instances, the !lo/7Throu6h *rinciple applies0 !or avoidanceof doubt, the Modified !lo/7Throu6h calculation may be applied oncein each chain on o/nership0
0The E=clusion of specified entities /hen determinin6 o/nership:
00 Bhen determinin6 &/nership in a Measured Entity, &/nership held
directly by &r6ans of tate or *ublic Entities must be e=cluded0 !or avoidance of doubt this e=emption only applies to &r6ans of the tateof the Republic of outh #frica and to *ublic Entities of the Republic of outh #frica0
003 E=clusion of &/nership held by the &r6ans of tate or *ublic Entitiesis to be effected before any other &/nership discountin6 methods areto be applied0
02-7--EE !acilitator taus
020 Despite *ara6raphs 00 and 003, the Minister of Trade and Industrymay, by notice in the 6a8ette, desi6nate certain &r6ans of tate or *ublic Entities as -7--EE !acilitators0 In calculatin6 their &/nershipscore, Measured Enterprises must treat -7--EE !acilitators as havin6ri6hts of &/nership held:
0200 ''H by -lac. *eople:
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02003 1'H by -lac. Bomen:
0200 3'H by blac. desi6nated 6roups4
02001 Bithout any ac5uisition debts4 and
0200 Bithout any third7party ri6hts0
0>Mandated Investments
0>0 Bhen determinin6 &/nership in a Measured Entity, ri6hts of &/nership of Mandated Investments may be e=cluded0
0>03 The ma=imum percenta6e of the &/nership of any Measured Entity
that may be so e=cluded is 1'H00>0 Mandated Investments are those investments as defined in chedule
of the $o* as per a8ette "o0 2+3?, /ith e=amples of MandatedInvestments in #nne=e '' (#) of the $o* as per a8ette "o0 2+3?
0>01 Entities that elect not to e=clude Mandated Investments /hen entitledto do so may either treat all of that &/nership as non7blac. or obtain acompetent personJs report estimatin6 the e=tent of blac. ri6hts of &/nership measurable in the Measured Entity and ori6inatin6 from
that Mandated Investment0
0>0 # Measured Entity cannot selectively include or e=clude MandatedInvestments and an election to e=clude one mandated investment isan election to e=clude all Mandated Investments and vice versa0
0?Dilution due to Re6ulatory Re5uirements
3!;!1 An= i,u-ion in -e a+-ua, )er+en-a*e o ,a+8 O7nersi) in a "easure En-i-= -a- o++urs
ue -o -e "easure En-i-= ain* -o in+rease i-s +a)i-a, base as a ire+- resu,- oRe*u,a-or= Require.en-s ?ne7 or e'is-in*@ 7i,, or -e )ur)oses o -is Coe no- resu,- in
a i,u-ion o -e )er+en-a*e ,a+8 O7nersi) +,ai.e uner -e $+ore+ar +on-aine uner
#ara*ra) 2 Tab,e 2a!
3!;!2 A "easure En-i-= .a= e'+,ue o7nersi) arisin* in u-ure as a ire+- resu,- o an=
ne7 Re*u,a-or= Require.en-s -o in+rease -e +a)i-a, base o -e "easure En-i-=!
3!;!3 For aoian+e o oub- -is )rin+i),e 7i,, no- a)),= sou, -e ins-i-u-ion be require -o
raise ai-iona, +a)i-a, ue -o i- ain* 7ri--en Mba business!
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0+The Reco6nition of &/nership after the ale or %oss of hares by -lac.
*articipants
0+0 #ny sale or loss of shares that have occurred on or prior to December 3'' shall be sub;ect to the continuin6 conse5uencesformula as per *ara6raph of #nne=e ''($) of this Revised!inancial ector $ode0
0+03 In addition, a Measured Entity is allo/ed to reco6nise a portion of -lac. &/nership after a -lac. participant has e=ited throu6h thesale or loss of shares /here such sale or loss occurs after December 3''0 The portion reco6nisable /here such sale or lossoccurs after December 3'' is as follo/s:
0+030 In the event of a dilution in the actual percenta6e of -lac. o/nershipin a Measured Entity (such dilution havin6 occurred on or after 9anuary 3'), as a result of a -lac. participantAs electin6 to selltheir shares and realise the net value attributable to those shares/hen those shares have become eli6ible for sale or transfer, anysuch dilution, /ill for the purposes of this Revised !inancial ector $ode, not result in a dilution of the percenta6e -lac. &/nershipclaimed under the corecard contained under *ara6raph 3, Table3a above0 -lac. *articipants should be encoura6ed to sell the
realisation shares to other -lac. participants and, /here possible, ameasured entity should attempt to provide assistance to -EEparticipants to sell to other -EE participants0 !or avoidance of doubt, such assistance is not to be interpreted as the provision of financin6 (debt or other) to the proposed buyer0
0+0303 In the event of a dilution in the actual percenta6e of -lac.&/nership in a Measured Entity (such dilution havin6 occurred on or after 9anuary 3'), as a result of all other sales of shares (other than the sale of shares described under *ara6raphs 0? or 0+030
above) a portion of the percenta6e may be reco6nisable sub;ect tothe follo/in6 criteria:
0 The -lac. participant has held those shares for a minimum period of three years4
30 "et Value based on the Time -ased raduation !actor as per #nne=e '' (E)
must have been created in the hands of -lac. people0 (i0e0 a portion of the debt
ac5uired to purchase the e5uity must have been repaid or the sellin6 price of the
shares must be hi6her than the purchase price)4and
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0 Transformation has ta.en place /ithin the Measured Entity usin6 the -7--EE
Reco6nition %evel from the period of entry of -lac. participants to the e=itin6
period0
0+0 The !ormula for calculatin6 continued reco6nition (for sales of shares) in circumstances as contemplated under *ara6raph 0+0303 iscontained under *ara6raph of #nne=e ''($) of this $odetatement and -lac. participation arisin6 from continued reco6nitionof -lac. &/nership cannot contribute more than 1'H of the score onthe &/nership scorecard0
0+01 In the case of a loss of shares by the -lac. investor, the follo/in6additional rules apply:
0+010 # /ritten tripartite a6reement bet/een the Measured Enterprise, the-lac. *articipant and a lender must record the loan or securityarran6ement, unless the Measured Entity is the lender4 and
0+0103 The period over /hich the continued reco6nition points are allocatedor reco6nisable /ill not e=ceed the period over /hich the shares/ere held0
0+0 The &/nership points under *ara6raph 0+01 (a loss of shares,unless that loss of shares is outside the control of the measuredentity) that are attributable to the Measured Entity /ill be calculatedby multiplyin6 the follo/in6 elements4
0+00 The value created in -lac. hands as a percenta6e of the value of the Measured Entity at the date of the loss of shares as a percenta6eof Measured Entity<s value40+02 The formula for measurin6 the percenta6e of continued reco6nition is as
follo/s:
A ' C D
ere
A is -e +on-inue re+o*ni-ion a-er -e ,oss o sares
is -e )er+en-a*e o7nersi) or ea+ o -e ini+a-ors in -e o7nersi) s+ore+are, i..eia-e,= )rior -o -e ,oss
C is -e Ne- Ha,ue as )er or.u,a MLoss 1 be,o7
D is .os- re+en- EE re+o*ni-ion Lee, o -e "easure en-i-= ?no- .ore -an one
=ear o, base on a,, e,e.en-s e'+,uin* o7nersi)@
For.u,a: Loss 1:
A ? > C@ ( D
ere
A is -e Dee.e Ne- Ha,ue
is -e a,ue o -e ,os- sares as a- -e a-e o ,oss
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C is -e +arr=in* a,ue o an= eb- in re,a-ion -o -e ,os- sares as a- -e a-e o ,oss
D is a,ue o -e .easure en-i-= as a- -e a-e o ,oss
0+003 The &/nership points that /as attributable to the Measured Entity
on the date of sale or loss00+02 In the event of a sale or loss of shares by the -EE partner, the e5uity
e5uivalent cap of H no lon6er applies and Measured Entities E5uity<s
E5uivalent pro6rammes /ill not be sub;ect to a cap0
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0 Broad0based O;nership and E!ployee O;nership Sche!es
10-lac. *articipants in -road7-ased &/nership chemes and Employee
hare &/nerships chemes holdin6 ri6hts of o/nership in a Measured
Entity may contribute:
1%1%) # ma=imum of 1'H of the total points on the o/nership scorecard of the Measured Entity if they meet the 5ualification criteria set out in #nne=e ''(-)0
1%1%< ''H of the total points on the o/nership scorecard of theMeasured Entity if they meet the additional 5ualification criteria setout in #nne=e ''(-)0
10 Priate E=uity $unds
0# Measured Entity may treat any of its o/nership arisin6 from a *rivate
E5uity !und as if that o/nership /ere held by -lac. people, /here the
*rivate E5uity !und meets the follo/in6 criteria:
1%1%/ More than H of any E=ercisable Votin6 Ri6hts associated /ith theE5uity Instruments throu6h /hich the *rivate E5uity !und holds
ri6hts of o/nership, be held by -lac. people4
1%1%2 More than 'H of profits made by the *rivate E5uity !und after realisin6 any investment made by it, must by /ritten a6reement,accrue to -lac. people4
1%1%4 The *rivate E5uity !und mana6er must be a -EE &/ned$ompany as defined4 and
1%1%5 More than 'H of the value of funds invested by any *rivate E5uity
!und must at all times be invested in -lac. o/ned enterprises that/ere at least 3H -lac. o/ned before the investment of the *rivateE5uity !und0
<% :on Profit Co!panies and Co!panies Li!ited by 8uarantee
20# Measured Entity may elect to include or e=clude these companies for
the purposes of measurin6 o/nership in terms of this statement0
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203# "on *roft $ompany or company limited by 6uarantee that houses a
-road7-ased &/nership cheme or an Employee &/nership cheme is
sub;ect to the provisions 6overnin6 those types of schemes and not to
this para6raph0
20Bhen a Measured Entity elects to e=clude such companies, it can do so
by e=cludin6 up to 1'H of the level of their &/nership completely from
the determination of its compliance /ith the &/nership tar6et0
201# Measured Entity electin6 not to these ection 3 companies /hen it is
entitled to do so, may either treat all of that &/nership as non7blac. or
obtain a competent person<s report estimatin6 the e=tent of -lac.
ri6hts of &/nership measurable in the Measured Entity and
ori6inatin6 from those companies0
20-lac. *articipants in such companies holdin6 ri6hts of &/nership in a
Measured Entity may contribute:
200 # ma=imum of 1'H of the total points on the &/nership scorecard of
the Measured Entity if they meet the 5ualification criteria for -road7-ased &/nership chemes set out in #nne=e ''(-) and Employeehare &/nership *ro6rammes set out in #nne=e ''($)0
2003 ''H of the total points on the &/nership scorecard of theMeasured Entity if they meet the additional 5ualification criteria setout for -road7-ased &/nership chemes in #nne=e ''(-) andEmployee hare &/nership *ro6rammes set out in #nne=e ''($)0
/% 3rusts
>0-lac. *articipants in a Trust, holdin6 ri6hts of o/nership in a Measured
Entity may contribute:
1%1%17 # ma=imum of 1'H of the total points on the o/nership scorecard of the Measured Entity if the trust meets the 5ualification criteria for Trusts set out in #nne=e &&(-)0
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1%1%11 ''H of the total points on the o/nership scorecard of theMeasured Entity if they meet the additional 5ualification criteria setout for Trusts in #nne=e ''(-)0
2% Options and share ;arrants
?0E=ercisable votin6 ri6hts and Economic interest /ill be reco6nised /here
a *articipant holds an instrument 6rantin6 the holder the ri6ht to ac5uire
an E5uity Instrument or part thereof at a future date, if the follo/in6
re5uirements are met:
1%1%1" The E=ercisable Votin6 Ri6hts attached to that instrument are
irrevocably transferred to the holder for the option period and aree=ercisable by the holder before ac5uirin6 the E5uity Instrument4
1%1%1# The value of any Economic Interest is irrevocably transferred for theoption period and paid to the holder of that instrument before thee=ercise of that ri6ht0
1%1%1) The value of an instrument must be determined by usin6 a standardvaluation method for calculatin6 the "et value0
4% E=uity .nstru!ents Carryin( Preferential Ri(hts
+0#n E5uity Instrument carryin6 preferential ri6hts is measurable in the
same manner as an ordinary E5uity Instrument0
+03#n E5uity Instrument carryin6 preferential ri6hts that has the
characteristics of a debt, re6ardless of /hether the debt is that of an
Enterprise or of a *articipant, is an ordinary loan0 If the debt is that of a
blac. *articipant, it may be sub;ect to measurement under $urrentE5uity Interest0
+0 In evaluatin6 an instrument that has a hybrid nature includin6 the
characteristics of a debt, only that portion that represents a debt, /ill be
measured under current e5uity interest0 The remainder is measurable as
an ordinary e5uity instrument0
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5% :et >alue
'0 "et value reflects the economic value of &/nership Ri6hts after
ta.in6 into account the carryin6 value of any ac5uisition debt0
1%1%1< *oints are a/arded in accordance /ith the formula in #nne=e''($)0 The formula reflects that all ac5uisition debt should bee=tin6uished /ithin nine years of the ac5uisition of E5uity Interestsby participants in order to score full points0
17%3he Points for 'irect or .ndirect O;nership in e*cess of 1<? in 3able "a
0 # Measured Entity /ith H direct blac. Economic Interest, can
receive a ma=imum of 3 points for an additional 'H Economic Interestheld by blac. *articipants held either as Direct or Indirect &/nership,
measured in increments of '0 points for every 30H additional
Economic Interest0
11% 3he Bonus Points
30 The -onus points relatin6 to *ara6raphs 30+ and 30' of Table 3a is
only available to domestic measured entities0
300 !or avoidance of doubt all contributions that are considered aso/nership (includin6 ales of #ssets, ales of hares, E5uityE5uivalents and Indirect &/nership) shall count under *ara6raphs30>, 30+ and 30' of Table 3a0
303 The bonus points relatin6 to *ara6raph 303 of Table 3b are only
available to local branches of forei6n entities0 Measured Entities that
5ualify as local branches of forei6n entities may meet their entire&/nership Tar6ets by applyin6 !$ode '', tatement '0
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3030 To this end a forei6n branch may receive a ma=imum of three bonuspoints should it satisfy its E5uity E5uivalent $ontribution re5uirements(as per !$ode'', tatement ') by contributin6 the total re5uiredamount for -EE transactions financin6 or other 5ualifyin6 E5uity
E5uivalents /ithin the financial sector0 Therefore, if a forei6n branchfunds transactions to the value of 30H in the financial sector it mayreceive 0 bonus points K L(30H A 3H) = 0
30303 # Measured Entity /ith 3H blac. Economic Interest can receive ama=imum of t/o bonus points for a 'H holdin6 of Economic Interestby blac. ne/ entrants0
3030 # Measured Entity /ith 3H blac. Economic Interest can receive ama=imum of one bonus point for a 'H holdin6 of Economic Interestby blac. participants in:
30300 Employee &/nership chemes4
303003 -road7based &/nership chemes4 and
30300 $o7&peratives0
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Annexe FS100(A)
E'a,!& # Man%a"!% In<!&"!n"&
Description Of Investment Portion Subject to Exclusion Principle
Ines-.en-s .ae b= or or a +o,,e+-ie ines-.en- s+e.e as eine in
-e Co,,e+-ie Ines-.en-s Con-ro, A+- o 2002
Fu,, Ha,ue
Ines-.en-s .ae b= or or a )ension un as eine in -e #ension
Fun A+- o 1956
Fu,, Ha,ue
Ines-.en-s .ae b= or or a .ei+a, s+e.e as eine in -e "ei+a,
$+e.es A+- o 199; ou- o .e.bers uns
#or-ion re+ore as .ae ou- o .e.bers
uns
Ines-.en-s .ae b= or or ,on*-er. insures as eine in -e Lon*
-er. Insuran+e A+- o 199; ou- o )o,i+= o,ers uns
#or-ion re+ore as .ae ou- o )o,i+=
o,ers uns
Ines-.en-s .ae b= or or rien,= so+ie-ies as eine in -e Frien,=
$o+ie-ies A+- o 1956
Fu,, Ha,ue
Ines-.en-s .ae b= or or a ban8 as eine in -e an8s A+- o 1990
ou- o e)osi-ors uns as o))ose -o o7n reseres
De)osi-or )or-ion e-er.ine b= a))or-ionin*
ines-.en- in -e ra-io -a- -e e)osi-or uns
-o o7n reseres
Ines-.en-s .ae b= or or a .u-ua, ban8 as eine in -e "u-ua,
an8s A+- o 1993 ou- o e)osi-ors uns as o))ose -o o7n reseres
De)osi-or )or-ion e-er.ine b= a))or-ionin*
ines-.en- in -e ra-io -a- -e e)osi-or uns
-o o7n reseres
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Annexe FS100(B)
RULES ON CERTAIN TYPES OF ENTERPRISES
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1 Rules for Broad0Based O;nership Sche!es
The follo/in6 rules apply to -road7-ased &/nership chemes:
1%1%1/ The Mana6ement !ees of the scheme must not e=ceed H4
1%1%12 The constitution of the scheme must record the rules 6overnin6 anyportion of economic interest received and reserved for futuredistribution or application:
1%1%14 #t least ?H of the value of benefits allocated by the scheme mustaccrue to blac. people4
1%1%15 #t least 'H of the fiduciaries of the scheme must be independentpersons havin6 no employment /ith or direct or indirect beneficialinterest in the scheme4
1%1%"7 #t least 'H of the fiduciaries of the scheme must be blac. peopleand at least 3H must be blac. /omen4
1%1%"1 The chairperson of the scheme must be independent4 and
1%1%"" &n the /indin67up or termination of the scheme, all accumulated
Economic Interest must be transferred to beneficiaries or an entity/ith similar ob;ectives0
1"%Rules for E!ployee Share O;nership Sche!es
The follo/in6 rules apply to Employee hare &/nership chemes (E&*):
1%1%"# The scheme constitution must define the *articipants and theproportion of their claim to receive distributions4
1%1%") # /ritten record of the name of the *articipants or the use of adefined class of natural person satisfies the re5uirement for identification4
1%1%"< # /ritten record of fi=ed percenta6es of claim or the use of aformula for calculatin6 claims satisfies the need for definin6proportion of benefit4 and
1%1%"/ The fiduciaries of the scheme must have no discretion on the above7mentioned terms4
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The *articipants must ta.e part in:
1%1%"2 #ppointin6 at least 'H of the fiduciaries of the scheme4
1%1%"4 Mana6in6 the scheme at a level similar to the mana6ement role of shareholders in a company havin6 shareholdin64
1%1%"5 The constitution, or other relevant statutory documents of thescheme must be available, on re5uest, to any *articipant in anofficial lan6ua6e in /hich that person is familiar4 and
1%1%#7 #ll accumulated Economic Interest of the scheme is payable to the*articipants at the earlier of a date or event specified in the scheme
constitution or on the termination or /indin67up of the scheme4 and
1%1%#1 The scheme fiduciaries must present the financial reports of thescheme to *articipants yearly at an annual 6eneral meetin6 of thescheme0
1#%Rules for 3rusts
The 5ualification criteria for the reco6nition of Trusts are as follo/s:
1%1%#" The trust deed must define the beneficiaries and the proportion of their entitlement to receive distributions4
1%1%## # /ritten record of the names of the beneficiaries or the use of adefined class of natural person satisfies the re5uirement for identification4
1%1%#) # /ritten record of fi=ed percenta6es of entitlement or the use of aformula for calculatin6 entitlement satisfies the need for definin6
proportion of benefit4 and
1%1%#< The trustees (includin6 trustees of a family trust that /ill 5ualifyprovided that the Trust deed stipulates that the -eneficiaries mustbe -lac. outh #fricans and that at least ?H of the proceeds of theTrust accrues to the beneficiaries) must have no discretion on theabove mentioned terms, and on /indin67up or termination of thetrust, all accumulated Economic Interest must be transferred to thebeneficiaries or to an entity representin6 the interest of theparticipants or class of beneficiaries0
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1)%Additional Criteria Applicable to 3rusts&
!or a Measured Entity to obtain the ma=imum points on its &/nership
scorecard from shareholdin6 by a Trust the Measured Entity must be in
possession of a certificate issued by a competent person to the effect:
1%1%#/ That the Trust /as created for a le6itimate commercial reason,/hich must be fully disclosed4 and4
1%1%#2 That the terms of Trust do not directly or indirectly see. tocircumvent the provisions of the $odes and the #ct0
1<%Additional Criteria Applicable to Broad0based O;nership Sche!es andE!ployee O;nership Sche!es&
!or a Measured Entity to obtain the ma=imum points on its o/nership
scorecard, the follo/in6 additional re5uirements must be met by a
-road7-ased cheme or Employee hare &/nership cheme:
1%1%#4 # trac.7record of operatin6 as a -road7-ased &/nership cheme or Employee hare &/nership cheme, or in the absence of such a
trac.7record demonstrable evidence of full operational capacity tooperate as a -road7-ased &/nership cheme or Employee hare&/nership cheme
1%1%#5 &perational capacity must be evidenced by suitably 5ualified ande=perienced staff in sufficient number, e=perienced professionaladvisors, operatin6 premises and all other necessary re5uirementsfor operatin6 a business0
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Annexe F S1 00 ()
Measure!ent of >otin( Ri(hts
The calculation of the o/nership indicators provided for in *ara6raphs 30
and 303 is as follo/s:
A (C ' D
ere
A is -e s+ore a+iee or -e En-er)rise or -e .easure o7nersi) ini+a-or
B is -e )er+en-a*e -a- E'er+isab,e Ho-in* Ri*-s in -e ans o -e +a-e*or= o#ar-i+i)an-s 7o are b,a+8 )eo),e in -a- En-er)rise o,s -o a,, Ho-in* Ri*-s e, b=
a,, #ar-i+i)an-s o -a- En-er)rise
ere Equi-= Equia,en-s are u-i,ise -e Equi-= Equia,en-s sa,, be ee.e -o o,Ho-in* Ri*-s -a- ran8 equally 7i- orinar= sareo,er o-in* ri*-s an 50 o -e
ee.e o-in* ri*-s sa,, be ee.e -o be in aour o b,a+8 7o.en!
C is -e )er+en-a*e +o.),ian+e Tar*e- or E'er+isab,e Ho-in* Ri*-s or -e a)),i+ab,e
.easure o7nersi) ini+a-or in #ara*ra)s 2!1 an 2!2
D is -e ei*-in* )oin-s a,,o+a-e -o -e a)),i+ab,e .easure o7nersi) ini+a-or in
#ara*ra)s 2!1 an 2!2
If an Enterprise 6ains a score in the formula above that is more than the
Bei6htin6 points in *ara6raphs 30 and 303, that Enterprise /ill only
receive the Bei6htin6 points0
20Measure!ent of Econo!ic .nterest
The calculation of the o/nership indicators provided for in *ara6raphs 30,
301 and 30 is as follo/s
A (C ' D
ere
A is -e re+o*nisab,e )er+en-a*e o a b,a+8 #ar-i+i)an-s +,ai. -o E+ono.i+ In-eres- in
-e En-er)riseB is -e )er+en-a*e o E+ono.i+ In-eres- 7i+ #ar-i+i)an-s 7o a,, 7i-in -e+a-e*or= o b,a+8 )eo),e in -a- En-er)rise o, -o a,, E+ono.i+ In-eres- 7i+ a,,
#ar-i+i)an-s o -a- En-er)rise o,
ere Equi-= Equia,en-s are u-i,ise -e Equi-= Equia,en-s sa,, be ee.e -o o,E+ono.i+ In-eres- -a- ran8 equa,,= 7i- orinar= sareo,er E+ono.i+ In-eres- an
50 o -e ee.e E+ono.i+ In-eres- sa,, be ee.e -o be in aour o b,a+8 7o.en
an 50 sa,, be ee.e -o be in aour o Desi*na-e Grou)s!
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C is -e )er+en-a*e +o.),ian+e Tar*e- or E+ono.i+ In-eres- or -e a)),i+ab,e
.easure o7nersi) ini+a-or in #ara*ra)s 2!3 2!4 an 2!5
D is -e ei*-in* )oin-s a,,o+a-e -o -e a)),i+ab,e .easure o7nersi) ini+a-or in#ara*ra)s 2!3 2!4 an 2!5
If an Enterprise 6ains a score in the formula above that is more than the
Bei6htin6 points in *ara6raphs 30, 301 and 30, that Enterprise /ill only
receive the Bei6htin6 points0
>0Calculation of 'ee!ed :et >alue
In calculatin6 the CDeemed "et Value< referred to in *ara6raph 1 belo/, the
follo/in6 formula applies:
A ? > C@(D
ere
A is -e Dee.e Ne- Ha,ue
B or -e )ur)oses o #ara*ra) 4 be,o7 is -e a,ue o -e Equi-= Ins-ru.en-s
re,ean- -o -e +a,+u,a-ion e-er.ine on -e a-e o .easure.en-
C or -e )ur)oses o #ara*ra) 4 be,o7 is -e +arr=in* a,ue o an= a+quisi-ion eb-so -e re,ean- b,a+8 #ar-i+i)an-s on -e a-e o .easure.en-
D or -e )ur)oses o #ara*ra) 4 be,o7 is -e a,ue o -e "easurab,e #or-ion ?Ha,ue
o $ou- Ari+an O)era-ions@ o -e "easure En-i-= on -e a-e o .easure.en-
?0:et >alue
The F"et ValueG points in *ara6raph 302 is the lo/er result of !ormula # and
!ormula - as follo/s:
For.u,a A
A ' ?1(?25 ' C@@ ' 3
ere
A is -e s+ore uner #ara*ra) 2!6
is -e Dee.e Ne- Ha,ue or a,, b,a+8 #ar-i+i)an-s in -e "easure En-i-=e-er.ine usin* For.u,a 3 aboe
C is -e -i.ebase *raua-ion a+-or o -e E+ono.i+ In-eres- +o.),ian+e -ar*e-
ou-,ine be,o7:
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10 'H for the first year after the current e5uity interest date0
0 3'H for the second year after the current e5uity interest date0
20 1'H from the first day of the third year after the current e5uity interest date to thelast day of the fourth year after the current e5uity interest date0
>0 2'H from the first day of the fifth year after the current e5uity interest date to the
last day of the si=th year after the current e5uity interest date0?0 ?'H from the first day of the seventh year after the current e5uity interest date to
the last day of the ei6hth year after the current e5uity interest date0
+0 ''H from the first day of the ninth year after the current e5uity interest date tothe last day of the tenth year after the current e5uity interest date0
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For.u,a
A (C ' 3
ere
A is -e s+ore uner #ara*ra) 2!6
B is -e )er+en-a*e E+ono.i+ In-eres- in -e "easure En-i-= o b,a+8 #ar-i+i)an-s
C is -e -ar*e- or -e o7nersi) ini+a-or in #ara*ra) 2!3
If an Enterprise 6ains a score in *ara6raph 10 that is more than the
Bei6htin6 points in *ara6raph 302, that Enterprise /ill only receive the
Bei6htin6 points0
+0Calculation of the Reco(nition of O;nership after the Sale of Shares byBlac6 Participants&
The calculations referred to in *ara6raphs 0003 of !$ode '', tatement
'', use the follo/in6 formula:
!or *ara6raphs 30 and 30 of the &/nership corecard
A ' C ' D
ere
A is -e )er+en-a*e o ri*-s o o7nersi) -a- surie -e sa,e o an Equi-= Ins-ru.en-
b= a b,a+8 #ar-i+i)an- in #ara*ra) 3!5!1!2 -o 3!5!4!3
B is -e )er+en-a*e o ri*-s o o7nersi) or ea+ o -e ini+a-ors in -e o7nersi)s+ore+ar -a- 7ere a--ribu-ab,e -o -e b,a+8 #ar-i+i)an- i..eia-e,= beore is or er
sa,e
C Te ne- a,ue rea,iPe(+rea-e in b,a+8 ans a-er -e ,iquia-ion o eb- as a o
-e a,ue o -e $a,e $ares o ea+ o -e ini+a-ors i..eia-e,= )rior -o e'i-
Te ne- a,ue +rea-e in b,a+8 ans is equa, -o -e +urren- a,ue o -e sares ,ess an=
o7n +on-ribu-ion .ae b= -e EE )ar-= a- -e in+e)-ion a-e o -e -ransa+-ion
D is -e .os- re+en-,= e-er.ine EE Re+o*ni-ion Lee, o -e "easure En-i-=
?7i+ .us- be ,ess -an 1 =ear o,@ base on i-s Generi+ $+ore+ar resu,- or a,,E,e.en-s o-er -an o7nersi) e-er.ine usin* s-a-e.en- 000
For #ara*ra)s 2!2 2!4 an 2!5 A sa,, be equa, -o -e )er+en-a*e e, b= b,a+8o.en(Desi*na-e Grou)s i..eia-e,= beore -eir sa,e o sares .u,-i),ie b= -e
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resu,- o -e +a,+u,a-ion uner -is #ara*ra) 5!1!
!or *ara6raph 302 of the &/nership corecard
In re,a-ion -o +a,+u,a-in* -e )er+en-a*e o o7nersi) ri*-s -a- surie a-er -e sa,eo sares s)e+ii+a,,= or #ara*ra) 2!6 o -e O7nersi) $+ore+ar -e o,,o7in*
+a,+u,a-ion sa,, a)),=:
A C D
ere A is -e )er+en-a*e o ri*-s o o7nersi) -a- surie -e sa,e o an Equi-=Ins-ru.en- b= a b,a+8 #ar-i+i)an- in #ara*ra)s 3!5!1!2 -o 3!5!4!3
B is -e )er+en-a*e o -e Equi-= Ins-ru.en-s i,u-e e-er.ine on -e a-e o
.easure.en- i..eia-e,= beore is or er sa,e
C a,ue o -e equi-= in-eres-s so, ?,ess@ -e a,ue o an= o7n +on-ribu-ion .ae a-
-e in+e)-ion a-e o -e ea, in re,a-ion -o -e sares so, ?,ess@ -e +arr=in* a,ue oan= a+quisi-ion eb-s o -e re,ean- b,a+8 #ar-i+i)an-s on -e a-e o sa,e or ,oss
iie b= -e a,ue o -e .easure en-i-= a- -e a-e o sa,e or ,oss
D -e re+o*ni-ion ,ee, o -e .easure en-i-= e'+,uin* o7nersi) i..eia-e,= )rior
-o -e ,oss or sa,e
Illustr!tive ex!mple
#ssume that -EE consortium holds 'H of a measured entity at 'A'A3''+ (the commencementdate)0 'H of this holdin6 is attributable to blac. /omen and 'H is attributable to -lac.Desi6nated roups
#s at the commencement date the value of this holdin6 is R' (enterprise value R'') and thevalue of the associated debt is R''0
-EE $onsortium provided R' o/n cash contribution and R+' /as debt funded in lieu of thepurchase price of R'' for 'H
Throu6h corporate action this holdin6 is diluted fully at A3A3'3
#t A3A3'3, the value of this holdin6 has 6ro/n to R?' and the debt is R?'0 The value of thebusiness is therefore R ?''0
The measured entity is a level contributor e=cludin6 o/nership as at
A3A3'30
$alculation for *ara6raphs 30 and 30 of the &/nership corecard:A ' C ' D
10
C ??1;0;010@(1;0@ 50:
R1! is the value of the shares sold" R! is the debt outstanding and R1! is the valueof the consortium#s own contribution at the inception of the transaction.
D 110
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"#e continue$ reco%nition un$er P!r!%r!p#s &'1 !n$ &' of t#e scorec!r$ ill t#erefore be*
10+ , -0+ , 110+ . -'-+'
"#e continue$ reco%nition un$er P!r!%r!p#s 4>4? 4>@ an% 4>9 of t#e scorec!r$ ill t#erefore
be*-0+ x -'-+ . &'/-+
Ca,+u,a-ion or #ara*ra) 2!6 o -e O7nersi) $+ore+ar:
A ' C ' D
10
C ?1;0 ;0 10@ (1;00 5D 110
T1! c#n"in*!% $!c#6ni"i#n *n%!$ Pa$a6$a,1 4> i& "1!$!#$! 0: 9: 00: >99:>
"7%3he Bonus Points
The calculation of the bonus points as it relates to *ara6raphs 30? and 30+ of
the o/nership scorecard uses the follo/in6 formula:
A (C ' D(25 ' E
ere
A is -e bonus )oin-s a7are in #ara*ra)s 2!; an 2!9
B is -e )er+en-a*e -a- E+ono.i+ In-eres- -o 7i+ #ar-i+i)an-s 7o a,, 7i-in -a-
+a-e*or= o b,a+8 )eo),e in -a- En-er)rise o,s -o -e -o-a, o a,, E+ono.i+ In-eres-
o -a- En-er)riseC is -e )er+en-a*e +o.),ian+e Tar*e- or E+ono.i+ In-eres- or -e .easureo7nersi) ini+a-or in #ara*ra) 2!; an 2!9
D is )er+en-a*e o -e E+ono.i+ In-eres- in -e "easure En-i-= o b,a+8 )eo),e u)
-o a .a'i.u. o 25
E is -e ei*-in* )oin-s a,,o+a-e -o -e a)),i+ab,e .easure o7nersi) ini+a-or in
#ara*ra) 2!; an 2!9
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REVISED CODE SERIES FS0. THE MEASUREMENT OF
THE OWNERSHIP ELEMENT OF BROAD-BASED BLACK
ECONOMIC EMPOWERMENT
STATEMENT 04. RECOGNITION OF THE SALE OF ASSETSIssue uner se+-ion 9 o -e roaase ,a+8 E+ono.i+
E.)o7er.en- A+- o 2003
A$$an6!!n" # "1i& &"a"!!n"
1! Obe+-ies o -is s-a-e.en-JJJJJJJJJJJJJJJJJJJ!! 44
2! A)),i+a-ionJJJJJJ!JJJJJJJJJJJJJJJJJJJJ!!44
3! Be= "easure.en- #rin+i),esJJJJJJJJJJJJJJ!!JJJJ!44
4! "easure.en- #rin+i),esJJJJJJJJJJJJJJJJJJJJJ46
5! Re+o*ni-ion o $a,e o Asse-s Equi-= Ins-ru.en-s an usinessJJJJ46
0> O+7!c"i<!& # "1i& &"a"!!n"
Te obe+-ies o -is s-a-e.en- are -o:
1!1 $e- ou- -e +oni-ions 7ere -e $a,e o Asse-s Equi-= Ins-ru.en-s an o-er
usinesses 7i,, be re+o*nise!
1!2 $e- ou- o7 -e O7nersi) )oin-s 7i,, be e-er.ine!
4> A,,ica"i#n
2!1 A -ransa+-ion in -er.s o -is s-a-e.en- .a= ino,e -e sa,e o:
2!1!1!1 An asse-/
2!1!1!2 A business/ or
2!1!1!3 Equi-= Ins-ru.en-s in an En-er)rise!
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5> K! M!a&*$!!n" P$inci,!&
3!1 Genera, )rin+i),es:
3!1!1 A $e,,er -a- as +on+,ue a -ransa+-ion ino,in* a $a,e o Asse- Equi-=Ins-ru.en- or usiness 7i- an Asso+ia-e En-er)rise .a= +,ai. -e benei-s )roie or in -is s-a-e.en- in i-s o7n O7nersi) $+ore+ar!
3!1!2 ere a $e,,er as +,ai.e benei- in -er.s o -e O7nersi) s+ore+ar or -e$a,e o Asse- Equi-= Ins-ru.en- or usiness i- .a= no- +,ai. benei-s
uner -e En-er)rise Dee,o).en- E,e.en-!
3!2 <ua,ii+a-ion Cri-eria:
3!2!1 For O7nersi) )oin-s -o be re+o*nise -e -ransa+-ion:
3!2!1!1 "us- resu,- in -e +rea-ion o sus-ainab,e businesses or business o))or-uni-ies in
-e ans o b,a+8 )eo),e/ an
3!2!1!2 Resu,- in -e -ranser o s)e+ia,ise s8i,,s or )rou+-ie +a)a+i-= -o b,a+8 )eo),e!
3!2!2 A $a,e o Asse- Equi-= Ins-ru.en- an usiness .us- ino,e a se)ara-e
Asso+ia-e
En-er)rise 7i+ as:
3!2!2!1 No unreasonab,e ,i.i-a-ions ?*enera,,= a++e)-e ar.s ,en*- ,i.i-a-ions .a= be
i.)ose an .a= in+,ue bu- no- be ,i.i-e -o ,i.i-a-ions su+ as nor.a, ar.s,en*- res-rain-s o -rae ,i.i-a-ions@/ as -o i-s +,ien-s or +us-o.ers/ an
3!2!2!2 C,ien-s +us-o.ers or su)),iers o-er -an -e $e,,er!
3!2!3 An= o)era-iona, ou-sour+in* arran*e.en-s be-7een -e $e,,er an -e Asso+ia-e
En-er)rise .us- be ne*o-ia-e a- ar.s,en*- on a air an reasonab,e basis!
3!2!4 Te o,,o7in* -ransa+-ions o no- +ons-i-u-e <ua,i=in* Transa+-ions:
3!2!4!1 Transers o business ri*-s b= 7a= o ,i+ense ,ease or o-er si.i,ar ,e*a,
arran*e.en-s no- +onerrin* unres-ri+-e o7nersi)/ an
3!2!4!2 $a,es o ran+ises b= ran+isors -o ran+isees bu- in+,ues sa,es o ran+ises
ro. ran+isees -o o-er ran+isees or -o ne7 ran+isees!
@> M!a&*$!!n" P$inci,!&
4!1 Te +a,+u,a-ion o -e o7nersi) )oin-s in -er.s o )ara*ra) 2 o -e O7nersi)
s+ore+ar .us- be base on:
4!1!1 Te a,ue o -e -ransa+-ion/
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4!1!2 Te a,ue o Equi-= Ins-ru.en-s e, b= b,a+8 #ar-i+i)an-s in -e Asso+ia-e
En-er)rise/
4!1!3 Te +arr=in* a,ue o -e A+quisi-ion Deb- o b,a+8 #ar-i+i)an-s in -e Asso+ia-e
En-er)rise/ an
4!2 A,, +a,+u,a-ions in -er.s o )ara*ra) 4!1!1 -o 4!1!3 .us- use a $-anar a,ua-ion.e-o!
4!3 no- a)),i+ab,e
4!4 Equia,en+= #er+en-a*es uner -is s-a-e.en- a)),= -o a,, )ara*ra)s o -e
O7nersi) s+ore+ar e'+e)- bonus )oin-s/
4!5 Te $e,,er .us- in+,ue -e Equia,en+= #er+en-a*es in i-s o7n O7nersi)
$+ore+ar as i -ose )er+en-a*es arose ro. b,a+8 o7nersi) o Equi-=Ins-ru.en-s in -e $e,,er! Te Equia,en+= #er+en-a*es or -e ini+a-ors in
)ara*ra)s 2!1 an 2!2 o -e O7nersi) $+ore+ar +an be +a,+u,a-e in -er.s o
Anne'e 102?A@!
9> R!c#6ni"i#n # Sa! # A&&!"? E=*i" In&"$*!n"& an% B*&in!&&!&
5!1 A $e,,er see8in* re+o*ni-ion o a Transa+-ion in i-s O7nersi) $+ore+ar .us-e-er.ine -a- re+o*ni-ion uner )ara*ra) 4 in +o.),ian+e 7i- )ara*ra) 2!3 o
s-a-e.en- 000:
5!1!1! For -e irs- -ree =ears a-er -e -ransa+-ion base on a-a +urren- on a-eo .easure.en-/
5!1!2 For ea+ =ear -erea-er base on:
5!1!2!1 Te Ini+a-or #er+en-a*es a- -e a-e o .easure.en-/ an
5!1!2!2 Te a,ues o -e <ua,i=in* Transa+-ion an benei- -o -e $e,,er a- -e a-e o
.easure.en- in -e -ir =ear a-er -e -ransa+-ion!
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$%%E&E 1!2'$(
Tis or.u,a e-er.ines -e equia,en+= )er+en-a*es uner )ara*ra)s 2!1! -o 2!5 o Tab,e
2a o -e O7nersi) $+ore+ar!
ereA (C ' D
A is -e Equia,en+= #er+en-a*eB is -e a,ue o -e <ua,i=in* Transa+-ion -o -e Asso+ia-e En-er)rise
e-er.ine usin* a $-anar a,ua-ion .e-oC is -e a,ue o -e $e,,er e-er.ine usin* a $-anar a,ua-ion .e-oD is -e Ini+a-or #er+en-a*es o -e Asso+ia-e En-er)rise
5;
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REVISED CODE SERIES FS0--. THE MEASUREMENT OF THE
OWNERSHIP ELEMENT OF BROAD-BASED BLACK
ECONOMIC EMPOWERMENT
STATEMENT FS0-5.
THE RECOGNITION OF E;UITYE;UIVALENTS I&&*!% *n%!$ &!c"i#n / # "1! B$#a%-Ba&!% Bac2
Ec#n#ic E,#3!$!n" Ac" # 45
A$$an6!!n" # "1i& &"a"!!n"
1! O+7!c"i<!& # "1i& &"a"!!n">>> 9
4> K! !a&*$!!n" ,$inci,!&>
9
5> R!c#6ni"i#n # E=*i" E=*i<a!n" P$#6$a!&>> 90
@> M!a&*$!!n" # E=*i" E=*i<a!n" C#n"$i+*"i#n& #n "1! O3n!$&1i, Sc#$!ca$%>>
9> T3# S,!ciic E'a,!& # E=*i" E=*i<a!n" P$#6$a!&>>
> S,!ciic $*!& #n M*"ina"i#na&>>
0> O+7!c"i<!& # "1i& &"a"!!n"
Te obe+-ies o -is s-a-e.en- are -o:
1!1 Deine -e .eans b= 7i+ .easure en-i-ies .a= re+o*nise Equi-= Equia,en-
#ro*ra..es/
1!2 $)e+i= o7 +on-ribu-in* -o7ars -e O7nersi) E,e.en- o EE b= en-i-ies
a)),=in* equi-= equia,en-s is .easurab,e!
4> K! M!a&*$!!n" P$inci,!&
2!1! An= Equi-= Equia,en- Con-ribu-ions -o7ars -e O7nersi) E,e.en- o EE
.ae b= an en-i-= re+o*nisin* equi-= equia,en-s are .easurab,e a*ains- -e a,ue o
-eir o)era-ions in -e Re)ub,i+ o $ou- Ari+a!2!2! Equi-= Equia,en- +on-ribu-ions .a= -a8e -e or. o bu- is no- ,i.i-e -o ai-iona,
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EE Inus-ria,is- Finan+in* A++ess -o Finan+ia, $eri+es Tar*e-e Ines-.en-s
En-er)rise Dee,o).en- e-+! Tese ai-iona, +on-ribu-ions .a= on,= be +oun-e
uner ei-er Equi-= Equia,en-s or -e res)e+-ie e,e.en- no- uner bo-!
2!2!1! For aoian+e o oub- 7ere an Equi-= Equia,en- +on-ribu-ion .a= qua,i= uner
or e'a.),e E.)o7er.en- Finan+in* i- .us- on,= be in+,ue uner ei-erE.)o7er.en- Finan+in* or O7nersi)!
2!2!2! Fur-er an= Msin*,e Equi-= Equia,en- +on-ribu-ion .a= on,= be +oun-e as an Equi-=
Equia,en- +on-ribu-ion in i-s en-ire-= uner ei-er O7nersi) or -e )i,,ar s+ore+ar!"easure en-i-ies .a= no- s),i- a +on-ribu-ion an a--ribu-e )ar- o -a- +on-ribu-ion -o
O7nersi) an )ar- o -e +on-ribu-ion -o a s)e+ii+ )i,,ar!
• Te -ar*e- or Equi-= Equia,en-s sa,, be -e Ran Ha,ue o 5 ?or ,o+a,
en-i-ies@ (or 25 ?orei*n bran+es@ o -e .easure en-er)rise .easure usin*a s-anar a,ua-ion as a- 31 De+e.ber 2010!
2!3! Lo+a, .easure en-i-ies see8in* -o u-i,ise Equi-= Equia,en- Con-ribu-ions .a= on,=
u-i,ise -ese +on-ribu-ions or a .a'i.u. o 5 o -e "easure En-i-= ?+a,+u,a-e as
a )er+en-a*e o $ou- Ari+an o)era-ions o -a- .easure en-i-= a- 31 De+e.ber2010@ 7i- res)e+- -o i-s o7nersi) -ar*e- o 15 ire+- o7nersi)!
2!4! Lenin* -=)es o Equi-= Equia,en- +on-ribu-ions 7i,, be re+o*nise as o,,o7s:
• Te ori*ina-ion a.oun-s sa,, be re+o*nise uner )ara*ra)s 2!1 -o 2!5 o -e
O7nersi) $+ore+ar:
o For -e )ur)ose o )ara*ra) 2!1 o -e o7nersi) s+ore+ar equi-=
Equia,en- Con-ribu-ions sa,, be ee.e -o o, o-in* ri*-s/
o For -e )ur)ose o )ara*ra) 2!2 o -e o7nersi) s+ore+ar 50 o -e
o-in* ri*-s re+o*nise uner )ara*ra) 2!1 sa,, be ee.e -o be
e, b= b,a+8 7o.en/
o For -e )ur)ose o )ara*ra) 2!3 o -e o7nersi) s+ore+ar Equi-=
Equia,en- +on-ribu-ions sa,, be ee.e -o o, E+ono.i+ in-eres-/o For -e )ur)ose o )ara*ra) 2!4 o -e o7nersi) s+ore+ar 50 o
-e e+ono.i+ in-eres- re+o*nise uner )ara*ra) 2!3 sa,, be ee.e
-o be e, b= b,a+8 7o.en/
o For -e )ur)ose o )ara*ra) 2!5 o -e o7nersi) s+ore+ar 50 o
-e e+ono.i+ in-eres- re+o*nise uner )ara*ra) 2!3 sa,, be ee.e-o be e, b= b,a+8 esi*na-e *rou)s!
• On,= -e ba,an+e see- e')osure as a- .easure.en- a-e sa,, be re+o*nise
uner )ara*ra) 2!6 o -e o7nersi) s+ore+ar!
5> R!c#6ni"i#n # E=*i" E=*i<a!n" P$#6$a!&
3!1 Te "inis-er o Trae an Inus-r= .a= a))roe +er-ain Equi-= Equia,en-
#ro*ra..es a-er -e en-i-= a)),=in* or re+o*ni-ion o equi-= equia,en-s as+onsu,-e 7i- -e "inis-er o Finan+e 7i- res)e+- -o -eir equi-= equia,en- )ro)osa,
an -e "inis-er o Finan+e as or7are a re+o..ena-ion -o -e "inis-er o
Trae Inus-r=!
3!2 No-7i-s-anin* 3!1 an= Equi-= Equia,en- #ro*ra..e or.in* )ar- o -is $e+-or
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Coe +ons-i-u-es an a))roe )ro*ra..e! $)e+ii+a,,= -e Equi-= Equia,en-
#ro*ra..es es+ribe in )ara*ra) ; +ons-i-u-e a))roe )ro*ra..es an no ur-er
a)),i+a-ion as enisione in 3!1 is ne+essar=!
3!3 Equi-= Equia,en- #ro*ra..es are )reerab,= $e+-or $)e+ii+ bu- -e "inis-er o
Finan+e .a= +onsier reques-s or a))roa, o )ro*ra..es -a- are no- $e+-or$)e+ii+!
3!4 Equi-= Equia,en- #ro*ra..es .a= ino,e:
3!4!1 #ro*ra..es -a- su))or-:
3!4!1!1 Te A++e,era-e an $are Gro7- Ini-ia-ie or $ou- Ari+a/
3!4!1!2 Te Qoin- Ini-ia-ie or #riori-= $8i,,s/
3!4!1!3 Te Na-iona, $8i,,s Dee,o).en- $-ra-e*=/
3!4!1!4 Te Na-iona, Treasur= )o,i+= )riori-ies reerre -o in -e o+u.en- MA $aer Finan+ia,$e+-or -o $ere $ou- Ari+a be--er/
3!4!1!5 #ro*ra..es ai.e a- su))or-in* -e Goern.en-s NG#/
3!4!1!6 #ro*ra..es ai.e a- su))or-in* -e D$As Qobs Fun/
3!4!2 #ro*ra..es -a- )ro.o-e en-er)rise +rea-ion in res)e+- o +oo)era-ies -a- are:
3!4!2!1 "ore -an 50 o7ne b= b,a+8 )eo),e/ or
3!4!2!2 "ore -an 30 o7ne b= b,a+8 7o.en/ or
3!4!2!3 "ore -an 50 o7ne b= .e.bers o b,a+8 esi*na-e *rou)s/
3!4!3 An= o-er )ro*ra..es -a- )ro.o-e $o+ioE+ono.i+ aan+e.en- or +on-ribu-e -o
-e oera,, so+ia, ee,o).en- o -e Re)ub,i+ o $ou- Ari+a!
3!5 Equi-= Equia,en- #ro*ra..es .us- in+,ue:
3!5!1 A u,, es+ri)-ion o )ro*ra..e obe+-ies an )roe+-e ou-+o.es/
3!5!2 <ua,ii+a-ion +ri-eria or )ar-i+i)a-ion in -e )ro*ra..e/
3!5!3 Ti.e,ines or i.),e.en-a-ion an e,ier= 7i- .i,es-ones a*ains- 7i+ )ro*ress is
.easurab,e/ an
3!5!4 De-ai,s abou- -e s)onsors o -e )ro*ra..e!
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3!6 Equi-= Equia,en- #ro*ra..es are no- ,i.i-e -o "u,-ina-iona,s sube+- -o a G,oba,
#ra+-i+e or ,o+a, bran+es o orei*n ban8s bu- are aai,ab,e -o a,, "easure En-i-iesin -e $e+-or sube+- -o -e ,i.i-a-ion on ,o+a, .easure en-i-ies as )er )ara*ra) 2!3
aboe!
3! Equi-= Equia,en- #ro*ra..es .a= ae an= o -e o,,o7in* as -eir benei+iaries:
3!!1 En-er)rises in 7i+:
3!!1!1 ,a+8 )eo),e o, .ore -an 50 o -e e'er+isab,e o-in* ri*-s an .ore -an 50
o -e e+ono.i+ in-eres-/
3!!1!2 ,a+8 7o.en o, .ore -an 30 o -e e'er+isab,e o-in* ri*-s an .ore -an 30
o -e e+ono.i+ in-eres-/ an
3!!1!3 ,a+8 Desi*na-e Grou)s o, .ore -an 50 o -e e'er+isab,e o-in* ri*-s an.ore -an 50 o -e e+ono.i+ in-eres-/ or
3!!2 Co..uni-ies na-ura, )ersons or *rou)s o na-ura, )ersons 7ere a- ,eas- 5 o -e
benei+iaries are b,a+8 )eo),e an -e sa.e )er+en-a*e o e+ono.i+ a,ue is erie
b= b,a+8 )eo),e!
@> M!a&*$!!n" # E=*i" E=*i<a!n" C#n"$i+*"i#n& #n "1! O3n!$&1i, Sc#$!ca$%
4!1 Te o7nersi) s+ore o a "easure En-i-= )ar-i+i)a-in* in an Equi-= Equia,en-
#ro*ra..e is +a,+u,a-e in -er.s o )ara*ra) 4!3! A orei*n "u,-ina-iona, ?in+,uin*
Forei*n ran+es o In-erna-iona, an8s@ )ar-i+i)a-in* in an Equi-= Equia,en-#ro*ra..e +anno- re+eie an= )oin-s or o7nersi) uner an= s-a-e.en- in Coe$eries 100 o-er -an -is s-a-e.en-! For aoian+e o oub- ,o+a, ban8s or o.es-i+
.u,-ina-iona,s .a= on,= u-i,iPe Equi-= Equia,en-s -o a .a'i.u. o 5 o i-s
.easurab,e )or-ion an .a= -ereore re+eie )oin-s or O7nersi) uner an=s-a-e.en- in Coe series 100!
4!2 Con-ribu-ions -o Equi-= Equia,en- #ro*ra..es are .easure as a+-ua, Ran Ha,ue o
+on-ribu-ions .ae usin* -e *enera, )rin+i),es as se- ou- in )ara*ra) ; o -is
$-a-e.en- 103 an +oe series F$600 F$00 an F$;00 ?No-e -a- +er-ain *enera,
)rin+i),es eine uner )ara*ra) ; .a= be -e sa.e as +er-ain *enera, )rin+i),es in
Coe series F$600 F$00 an F$;00@ a*ains- -e o,,o7in* -ar*e-:
4!2!1 2 5 o -e a,ue o -e $ou- Ari+an o)era-ions o -e Forei*n "u,-ina-iona, sube+--o a G,oba, #ra+-i+e or bran+ o a orei*n ban8 a)),=in* or -e re+o*ni-ion o Equi-=
Equia,en-s! Te 25 a,ue is e-er.ine b= usin* a $-anar Ha,ua-ion an
+a,+u,a-e as a- 31 De+e.ber 2010/ or 4!2!2 A .a'i.u. o 5 o -e Ran a,ue o -e $ou- Ari+an o)era-ions or Lo+a,
"easure En-i-ies +a,+u,a-e as a- 31 De+e.ber 2010!
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4!3 Te O7nersi) $+ore uner an Equi-= Equia,en- #ro*ra..e usin* -e -ar*e- in
)ara*ra) 4!2 .us- be +a,+u,a-e in -er.s o Anne'e 103?A@ usin* -e )rin+i),es aseine uner )ara*ra) 2!1 -o 2!4 o -is $-a-e.en- 103!
9> E'a,!& # E=*i" E=*i<a!n" P$#6$a!&
5!1 En-er)rise +rea-ion:
5!1!1 I -e equi-= equia,en- +on-ribu-ion o -e en-i-= ino,es -e +rea-ion o a ne7
En-er)rise:
5!1!1!2 Te +rea-ion o -e ne7 En-er)rise .us- +o.),= 7i- -e require.en-s or a
<ua,i=in* Transa+-ion as eine in s-a-e.en- 102/
5!1!1!3 Te +rea-ion o -e ne7 En-er)rise +anno- +on-ribu-e -o -e en-i-=s s+ore uner Coe
series F$600/ an
5!2 Ines-.en- in so+ia, aan+e.en-:
5!2!1 An equi-= equia,en- +on-ribu-ion o -e en-i-= a)),=in* or re+o*ni-ion o Equi-=
Equia,en-s -a- ino,es enan+e $o+ioE+ono.i+ Dee,o).en-!
5!2!1!1 "us- +o.),= u,,= 7i- Coe series F$00/ an
5!2!1!2 Canno- or. )ar- o -e s+ore o -e en-i-= a)),=in* or re+o*ni-ion o Equi-=
Equia,en-s uner Coe series F$00!
5!3 E.)o7er.en- Finan+e:
5!2!1 An equi-= equia,en- +on-ribu-ion o -e en-i-= a)),=in* or re+o*ni-ion o Equi-=
Equia,en-s -a- ino,es enan+e E.)o7er.en- Finan+e
5!2!1!1 "us- +o.),= u,,= 7i- Coe series F$600/ an
5!2!1!2 Canno- or. )ar- o -e s+ore o -e en-i-= a)),=in* or re+o*ni-ion o Equi-=
Equia,en-s uner Coe series F$600!
5!4 Ines-.en- in A++ess -o Finan+ia, $eri+es:
5!4!1 An equi-= equia,en- +on-ribu-ion o -e en-i-= a)),=in* or re+o*ni-ion o Equi-=
Equia,en-s -a- ino,es enan+e A++ess -o Finan+ia, $eri+es:
5!4!1!1 "us- +o.),= u,,= 7i- Coe series F$;00/ an
5!4!1!2 Canno- or. )ar- o -e s+ore o -e en-i-= a)),=in* or re+o*ni-ion o Equi-=
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Equia,en-s uner Coe series F$;00!
> S,!ciic R*!& #n En"i"i!& A,,in6 #$ R!c#6ni"i#n # E=*i" E=*i<a!n"&
6!1 An= +on-ribu-ions -o7ars -e o7nersi) E,e.en- o EE .ae b= en-i-ies
a)),=in* or re+o*ni-ion o Equi-= Equia,en-s are .easurab,e a*ains- -e a,ue o-eir o)era-ions in -e Re)ub,i+ o $ou- Ari+a!
6!2 In +a,+u,a-in* -eir o7nersi) s+ore en-i-ies a)),=in* or re+o*ni-ion o Equi-=
Equia,en-s .us- a)),= -e E'+,usion #rin+i),e -o an= )or-ion o -e business a,ue o-eir $ou- Ari+an o)era-ions *aine ro. non$ou- Ari+an sour+es! A $-anar
a,ua-ion .e-o .us- be use -o e-er.ine -e a,ue o -e $ou- Ari+an o)era-ions!
6!3 In +a,+u,a-in* -eir o7nersi) s+ore en-i-ies a)),=in* or re+o*ni-ion o Equi-=
Equia,en-s .a= re+o*nise sa,es o Equi-= Ins-ru.en-s in non$ou- Ari+anEn-er)rises -o b,a+8 )eo),e on -e o,,o7in* basis:
6!3!1 Te non$ou- Ari+an En-er)rise .us- or. )ar- o -e +ain o o7nersi) be-7een
-e en-i-ies a)),=in* or re+o*ni-ion o Equi-= Equia,en-s an i-s een-ua, o,in*
+o.)an=/ an
6!3!2 Te -ransa+-ion .us- +o.),= 7i- $ou- Ari+an e'+an*e +on-ro, require.en-s/ an
6!3!3 Te )er+en-a*e o -e a,ue o -e Equi-= Ins-ru.en-s so, -o -e a,ue o -e
business o -e en-i-= a)),=in* or re+o*ni-ion o Equi-= Equia,en-s re)resen-s -ere+o*nisab,e b,a+8 +,ai. -o E+ono.i+ In-eres-/ an
6!3!4 Te )er+en-a*e o E'er+isab,e Ho-in* Ri*-s +ee -o -e bu=ers o -e Equi-=Ins-ru.en-s in -e business o -e en-i-= a)),=in* or re+o*ni-ion o Equi-=Equia,en-s re)resen-s -e re+o*nisab,e b,a+8 ri*- -o E'er+isab,e Ho-in* Ri*-s/ an
6!3!5 Te ri*-s o o7nersi) in -e Equi-= Ins-ru.en-s are +o.)arab,e -o ri*-s -a- 7ou,
ae a++rue a -e Equi-= Ins-ru.en- been in -e business o -e en-i-= a)),=in* orre+o*ni-ion o Equi-= Equia,en-s!
8> S,!ciic R*!& #n M*"ina"i#na&
!1 onus )oin-s or "u,-ina-iona,s:
!1!1 "u,-ina-iona,s are no- res-ri+-e -o Equi-= Equia,en- #ro*ra..es in -e Finan+ia,
$e+-or! o7eer in orer -o qua,i= or -e bonus )oin- uner )ara*ra) 2!2 o Tab,e
2b o -e O7nersi) s+ore+ar -e 25 Dire+- O7nersi) -ar*e- .us- be a+iee ia
Equi-= Equia,en- #ro*ra..es -ar*e-e 7i-in -e Finan+ia, $e+-or!
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> E,#3!$!n" Financin6 an% Acc!&& "# Financia S!$<ic!& E=*i" E=*i<a!n"
P$#6$a!&
;!1 "easure En-i-ies .us- re*is-er eer= -ransa+-ion -a- +ons-i-u-es a )ar- o
E.)o7er.en- Finan+in* an A++ess -o Finan+ia, $eri+es Equi-= Equia,en-#ro*ra..es 7i- -e Finan+ia, $e+-or Coun+i, a- -e +o..en+e.en- o -e
-ransa+-ion:
;!1!1! Te re*is-ra-ion 7i,, in+,ue e-ai,s o -e EE s-a-us o -e re+i)ien- 7ere
re,ean- a es+ri)-ion o -e -ransa+-ion in -e +on-e'- o Coe series Coe series
F$600 an(or F$00 an(or F$;00 an -e Ran a,ue o -e equi-= equia,en- an
-er. oer 7i+ i- is +,ai.e!
;!1!2 Te -ransa+-ion +anno- or. )ar- o -e s+ore o -e en-i-= uner Coe series F$600
an(or F$00 an(or F$;00!
;!1!3 Con-ribu-ions -o Equi-= Equia,en- )ro*ra..es -a- are -e sa.e in na-ure -o+on-ribu-ions +on-e.),a-e uner Coe series F$600 an(or F$00 an(or F$;00 an
ae a,rea= been +,ai.e uner Coe $eries F$600 an(or F$00 an(or F$;00 .a=no- be +,ai.e uner )ara*ra) 2 o Coe F$100 $-a-e.en- 100! For aoian+e o
oub- no oub,e +oun-in* o -e sa.e +on-ribu-ion 7i,, be a,,o7e uner o7nersi)
an an= o-er e,e.en-!
;!2 "easure.en- )rin+i),es:
;!2!1 Equi-= Equia,en- +on-ribu-ions 7i,, be re+o*nise as o,,o7s:
• Te -ar*e- or Equi-= Equia,en-s sa,, be -e Ran Ha,ue o 5or 25 o -e
.easure en-er)rise .easure usin* a s-anar a,ua-ion as a- 31 De+e.ber 2010
• Te ori*ina-ion a.oun-s sa,, be re+o*nise uner )ara*ra)s > 2!1 -o 2!5 o
-e O7nersi) $+ore+ar
o For -e )ur)ose o )ara*ra) 2!1 o -e o7nersi) s+ore+ar equi-=
equia,en- +on-ribu-ions sa,, be ee.e -o o, o-in* ri*-s
o For -e )ur)ose o )ara*ra) 2!2 o -e o7nersi) s+ore+ar 50 o -e
o-in* ri*-s re+o*nise uner )ara*ra) 2!1 sa,, be ee.e -o be
e, b= b,a+8 7o.en
o For -e )ur)ose o )ara*ra) 2!3 o -e o7nersi) s+ore+ar equi-=
equia,en- +on-ribu-ions sa,, be ee.e -o o, E+ono.i+ in-eres-
o For -e )ur)ose o )ara*ra) 2!4 o -e o7nersi) s+ore+ar 50 o -e e+ono.i+ in-eres- re+o*nise uner )ara*ra) 2!3 sa,, be ee.e
-o be e, b= b,a+8 7o.en
o For -e )ur)ose o )ara*ra) 2!5 o -e o7nersi) s+ore+ar 50 o
-e e+ono.i+ in-eres- re+o*nise uner )ara*ra) 2!3 sa,, be ee.e-o be e, b= b,a+8 esi*na-e *rou)s
On,= -e ba,an+e see- e')osure as a- .easure.en- a-e sa,, be re+o*nise uner
)ara*ra) 2!6 o -e o7nersi) s+ore+ar
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A00E1E 10(A)
Tis or.u,a is or e-er.inin* -e O7nersi) $+ore uner an Equi-= Equia,en- #ro*ra..eusin* ei-er o -e -ar*e-s in )ara*ra) 4!2!1 or 4!2!2!
For Forei*n ran+es:
A (C ' 14
ere
A is o7nersi) )oin-s o -e en-i-= in an= =ear arisin* ro. i-s equi-= equia,en-
+on-ribu-ion
is -e is -e ba,an+e see- a,ue o +on-ribu-ions .ae as a- "easure.en- Da-e
C is -e -ar*e- o 25 o -e s-anar a,ue o i-s $ou- Ari+an o)era-ions as a- 31De+e.ber 2010
For Lo+a, "easure En-i-ies:
A ?(C ' 2@ K S? ' 50@ (D ' 0!6 K S? ' 50@ (E ' 0!33 K ?F(G ' 1!33@
ere
A is o7nersi) )oin-s o -e en-i-= in an= =ear arisin* ro. i-s equi-= equia,en-
+on-ribu-ion
is -e Ori*ina-ion a,ue o +on-ribu-ions .ae
C is -e -ar*e- o 5 ?15(3@ o -e s-anar a,ue o i-s $ou- Ari+an o)era-ions as
a- 31 De+e.ber 200; > re,a-in* -o )ara*ra)s 2!1 an 2!3 o -e O7nersi) $+ore+ar
D is -e -ar*e- o 2 ?6(3@ o -e s-anar a,ue o i-s $ou- Ari+an o)era-ions as a-
31 De+e.ber 200; re,a-in* -o )ara*ra)s 2!2 an 2!4 o -e O7nersi) $+ore+ar
E is -e -ar*e- o 3!33 ?10(3@ o -e s-anar a,ue o i-s $ou- Ari+an o)era-ions
as a- 31 De+e.ber 200; re,a-in* -o )ara*ra) 2!5 o -e O7nersi) $+ore+ar
F is -e ba,an+e see- a,ue o +on-ribu-ions .ae as a- "easure.en- Da-eG is -e -ar*e- as )er For.u,a A an For.u,a
Tis or.u,a is or e-er.inin* -e O7nersi) $+ore uner an Equi-= Equia,en-
#ro*ra..e usin* ei-er o -e -ar*e-s in )ara*ra)s 4!2!1 an 4!2!2 7ere -e+on-ribu-ion is .ae on an annua, basis -o7ars a -en =ear -ar*e- is as o,,o7s:
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A (C ' ?1(?5 or 25 ' D@ ' 13 or 4!33
ere
A is o7nersi) )oin-s o -e en-i-= in an= =ear arisin* ro. i-s equi-= equia,en-
+on-ribu-ion
is -e a,ue o -o-a, +on-ribu-ions .ae )rior -o -e a-e o .easure.en-
C is -e inan+ia, a,ue o -e -ar*e- in )ara*ra) 4!2!1! or 4!2!2 or -e -en =ear a,ue
o +on-ribu-ions -o be .ae oer -e ,ie o -is s-a-e.en-
D is -e -i.ebase *raua-ion a+-or ou-,ine be,o7:
U 10 or -e irs- =ear a-er -e +o..en+e.en- o s-a-e.en- 000!
U 20 or -e se+on =ear a-er -e +o..en+e.en- o s-a-e.en- 000!
U 40 ro. -e irs- a= o -e -ir =ear a-er -e +o..en+e.en- a-e o s-a-e.en-000 -o -e ,as- a= a- -e en o -e our- =ear a-er -e +o..en+e.en- a-e o
s-a-e.en- 000!
U 60 ro. -e irs- a= o -e i- =ear a-er -e +o..en+e.en- a-e o s-a-e.en-
000 -o -e ,as- a= a- -e en o -e si'- =ear a-er -e +o..en+e.en- a-e o
s-a-e.en- 000!
U ;0 ro. -e irs- a= o -e seen- =ear a-er -e +o..en+e.en- a-e o s-a-e.en-
000 -o -e ,as- a= a- -e en o -e ei*- =ear a-er -e +o..en+e.en- a-e o
s-a-e.en- 000!
U 100 ro. -e irs- a= o -e nin- =ear a-er -e +o..en+e.en- a-e o s-a-e.en-
000 -o -e ,as- a= a- -e en o -e -en- =ear a-er -e +o..en+e.en- a-e os-a-e.en- 000!
REVISED FINANCIAL SECTOR CODE SERIES FS4. MEASUREMENT OF THE
MANAGEMENT CONTROL ELEMENT OF BROAD-BASED BLACK ECONOMIC
EMPOWERMENT
STATEMENT FS4. THE GENERAL PRINCIPLES FOR MEASURING
MANAGEMENT CONTROL
I&&*!% *n%!$ &!c"i#n / (0) # "1! B$#a%-Ba&!% Bac2 Ec#n#ic E,#3!$!n" A!n%!n"
Ac" # 405
A$$an6!!n" # "1i& &"a"!!n"
Pa$a S*+7!c" Pa6!
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1! Obe+-ies o Tis $-a-e.en-!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!63
2! "ana*e.en- Con-ro, $+ore+ar!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!64
3! Be= "easure.en- #rin+i),es!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!65
4! "easure.en- o -e "ana*e.en- Con-ro, Cri-eria!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!6
ANNEE 200 ?A@!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!6;
6;
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1 Objecties of 3his State!ent
1!1 $)e+i= -e s+ore+ar or .easurin* "ana*e.en- Con-ro, +on-ribu-ions -o EE/
1!2 Deine -e 8e= .easure.en- )rin+i),es or .easurin* -e "ana*e.en- Con-ro, +on-ribu-ions
-o EE/ an
1!3 Deine -e or.u,a or +a,+u,a-in* -e s+ore or "ana*e.en- Con-ro,!
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"1%Mana(e!ent Control Scorecard
Te o,,o7in* -ab,e re)resen-s -e +ri-eria use or eriin* a s+ore or "ana*e.en- Con-ro,
uner -is s-a-e.en-:
Mana6!!n" C#n"$# Sc#$!ca$%
D!&c$i,"i#n P#in"&
Ta$6!
"
4>0 B#a$% Pa$"ici,a"i#n 5
2!1!1
E'er+isab,e o-in* ri*-s o ,a+8 boar .e.bers as a )er+en-a*e o
a,, oar .e.bers 1 50
2!1!2
E'er+isab,e o-in* ri*-s o ,a+8 e.a,e boar .e.bers as a
)er+en-a*e o a,, oar .e.bers 1 25
2!1!3 ,a+8 E'e+u-ie ire+-ors as a )er+en-a*e o a,, e'e+u-ie ire+-ors 1 50
2!1!4
,a+8 e.a,e E'e+u-ie ire+-ors as a )er+en-a*e o a,, e'e+u-ie
ire+-ors 1 25
2!1!5
Ari+an E'e+u-ie Dire+-ors as a )er+en-a*e o a,, e'e+u-ie
ire+-ors 1
EA#
4>4 O"1!$ E'!c*"i<! Mana6!!n" 3
2!2!1
,a+8 E'e+u-ie "ana*e.en- as a )er+en-a*e o a,, e'e+u-ie
.ana*e.en- 1 60
2!2!2
,a+8 e.a,e E'e+u-ie "ana*e.en- as a )er+en-a*e o a,,
e'e+u-ie .ana*e.en- 1 30
2!2!3
Ari+an E'e+u-ie "ana*ers as a )er+en-a*e o a,, e'e+u-ie.ana*ers 1
EA#
4>5 S!ni#$ Mana6!!n" 4
2!3!1
,a+8 e.),o=ees in $enior "ana*e.en- as a )er+en-a*e o a,, su+
e.),o=ees 2 60
2!3!2
,a+8 e.a,e e.),o=ees in $enior "ana*e.en- as a )er+en-a*e o
a,, su+ e.),o=ees 1 30
2!3!3 Ari+an $enior "ana*ers as a )er+en-a*e o a,, senior .ana*ers 1
EA#
4>@ Mi%%! Mana6!n" 4
2!4!1
,a+8 e.),o=ees in "i,e "ana*e.en- as a )er+en-a*e o a,,.i,e .ana*e.en- 2 5
2!4!2
,a+8 e.a,e e.),o=ees in "i,e "ana*e.en- as a )er+en-a*e o
a,, .i,e .ana*e.en- 1 3;
2!4!3 Ari+an "i,e "ana*ers as a )er+en-a*e o a,, "i,e .ana*ers 1EA#
4>9 *ni#$ Mana6!!n" 3
2!5!1
,a+8 e.),o=ees in Qunior "ana*e.en- as a )er+en-a*e o a,, unior
.ana*e.en- 1 ;;
2!5!2
,a+8 e.a,e e.),o=ees in Qunior "ana*e.en- as a )er+en-a*e o
a,, unior .ana*e.en- 1 44
0
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2!5!3 Ari+an Qunior "ana*ers as a )er+en-a*e o a,, Qunior .ana*ers 1
EA#
,a+8 e.),o=ees 7i- isabi,i-ies as a )er+en-a*e o a,, e.),o=ees 1 2
T#"a 4
""%Key Measure!ent Principles
0# Measured Entity receives points for their achievement to/ards the
Tar6ets for participation of -lac. people, -lac. /omen and #frican
people at -oard, E=ecutive Mana6ement, enior Mana6ement, Middle
Mana6ement, 9unior Mana6ement, and -4ac. employees /ith
disabilities0
03# Measured Entity must use the current payroll data as at Measurment
Date in calculatin6 its score under the Mana6ement $ontrol scorecard0
3!3 I a "easure En-i-= oe no- is-in*uis be-7een O-er E'e+u-ie "ana*e.en- an $enior
"ana*e.en- -en O-er E'e+u-ie "ana*e.en- is .easurab,e as sin*,e ini+a-or 7i- a
ei*-in* o ! $),i- as o,,o7s:
3!3!1 ,a+8 E'e+u-ie "ana*e.en- 3
3!3!2 ,a+8 e.a,e E'e+u-ie > 23!3!3 Ari+an E'e+u-ie "ana*ers 2
0 Bhere a Measured Entity does not have any employees in any of thecate6ories: Middle7 or 9unior Mana6ement, then the /ei6htin6s of theindicator /hich has no employees must be evenly distributed amon6the remainin6 cate6ories of enior, Middle or 9unior Mana6ement0Bhere there is no enior, Middle or 9unior Mana6ement, the a66re6ate/ei6htin6s of these cate6ories /ill be allocated to C&ther E=ecutiveMana6ement<0 Male /ei6htin6 points to male, female to female and
#frican to #frican0
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01If, in terms of a lobal *olicy to /hich a financial institution, that is a
''H o/ned local subsidiary of a multinational or e=ternal company
(ection of the $ompanies #ct (#ct > of 3''?, as amended, repealed
or superseded) or branch of a multinational or e=ternal company, is
sub;ect to a lobal *olicy:
010 #ny -oard members, e=ecutive or senior mana6ers (/ho are not outh #frican citi8ens) /ho are imposed on the local operation, thosepersonnel /ill not be ta.en into account for the purposes of calculatin6ratios in terms of this para6raph0
0103 "ot/ithstandin6 the provisions of *ara6raph 010 above, any suche=clusion of FimposedG personnel shall be limited to a ma=imum of 3'H
of the total number of individuals /ithin the specified cate6ory of Mana6ement0 There shall be a sub7minimum of person allo/ed to bee=cluded0
0103 "ot/ithstandin6 0103 above, should an institution sub;ect to lobal*olicy, send -lac. outh #frican employees, /ho are the intendedbeneficiaries of this code, on secondment or rotation to branchesabroad, they shall be allo/ed to e=clude one () additional forei6nimposed staff for every one () intended beneficiary sent abroad inaddition to the 3'H cap0
0 Board Participation&
00 -oard means the body consistin6 of persons appointed to underta.ethe e=ecutive mana6ement of the enterprise0 Their main functions areto desi6n, formulate and implement policy and underta.e strate6icplannin6, as /ell as to plan, direct and co7ordinate the overall policiesand activities of the enterprise0 These are also the persons responsiblefor 6overnance of the enterprise as defined in the Nin6 Report0
003 -oard participation refers to the level of control e=ercised by a person
over the decisions of the -oard000 Measured entities that do not have a -oard of Directors may apply to
the $harter $ouncil for dispensation to deem their E=ecutive$ommittee to be a -oard0
2
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001 "ot/ithstandin6 the provision im 00, the onus shall be on themeasured entity applyin6 for this dispensation to provide sufficientevidence to the $harter $ouncil that members claimed as part of anE=ecutive $ommittee do in fact hold responsibility that can be deemedto be of such a senior nature as to ;ustify their claim0
00 "ot/ithstandin6 the provision in 001, a financial institution that is abranch of a multinational or e=ternal company that does not have alocal -oard of Directors and /ho has not applied to have their E=ecutive $ommittee deemed as the -oard, /ill be e=empt from theMana6ement $ontrol provisions for -oard representation0 To avoid anydoubt, an entity must elect to either deem its E=ecutive $ommittee asthe -oard or elect to be e=cluded from the provisions for -oardrepresentation and once that election has been made and approved bythe $harter $ouncil, the measured entity must maintain that election0
002 Measured entities electin6 to be e=cluded from the provisions for -oardrepresentation /ill still be measured for &ther E=ecutive Mana6ementas per *ara6raph 3030
00> "ot/ithstandin6 the provisions of *ara6raph 01, any person includin6non7outh #frican citi8ens servin6 on the -oard or the &ther E=ecutiveMana6ement of a financial institution and not e=cluded frommeasurement under that para6raph, shall be sub;ect to the definition of a -lac. person as stipulated in the #ct0
02Definin6 &ther E=ecutive Mana6ement
020 E=ecutive Mana6ement positions include the E=ecutive Directors of theMeasured Entity0
0203 E=ecutive Mana6ement positions also includess e=ecutivemana6ement that do not serve on the board0 E=amples include: $hief E=ecutive &fficer, $hief &peratin6 &fficer, $hief !inancial &fficer,uman Resource E=ecutive, Transformation E=ecutive and other people holdin6 e=ecutive mana6ement positions0
3
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"#%Measure!ent of the Mana(e!ent Control Criteria
Te +ri-eria in -e "ana*e.en- Con-ro, s+ore+ar is .easure in -er.s o -e or.u,a se- ou-
in Anne'e 200?A@!
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")%A::E@ $S"77 +A,
MEASUREMENT OF MANAGEMENT CONTROL INDICATORS
Te "ana*e.en- Con-ro, +ri-eria )roie or in )ara*ra)s 2!1 2!2 2!3 2!4 2!5 an 2!6is +a,+u,a-e as o,,o7s:
ere
A is -e s+ore a+iee b= a "easure En-i-= in res)e+- o -e .easure.en- o -e +ri-erias)e+iie in )ara*ra) 2!1 2!2 2!3 2!4 2!5 an 2!6 o -e "ana*e.en- Con-ro, s+ore+ar
B in -e +ase o )ara*ra) 2!1 is -e Ho-in* Ri*-s in -e ans o b,a+8 .e.bers o -e oar as
a )er+en-a*e o Ho-in* Ri*-s o a,, .e.bers o -e oar in -e "easure En-i-=/ or
B in -e +ase o )ara*ra) 2!2 is -e )er+en-a*e o ,a+8 E.),o=ees in -e O-er E'e+u-ie"ana*e.en- +a-e*or= o -e "easure En-i-=/ or
B in -e +ase o )ara*ra) 2!3 2!4 an 2!5 is -e )er+en-a*e o ,a+8 E.),o=ees or ea+ o -e
ini+a-ors in -ose )ara*ra)s as +a,+u,a-e in Anne'e 200 ?@/ or
B in -e +ase o )ara*ra) 2!6 is -e )er+en-a*e o ,a+8 E.),o=ees 7i- a Disabi,i-= as a
)er+en-a*e o a,, E.),o=ees
C is -e )er+en-a*e +o.),ian+e Tar*e- in res)e+- o -e a)),i+ab,e +ri-eria bein* .easure ass)e+iie in )ara*ra) 2!1 2!2 2!3 2!4 2!5 an 2!6 o -e "ana*e.en- Con-ro, s+ore+ar
D .eans -e ei*-in* )oin-s a,,o+a-e -o -e a)),i+ab,e +ri-eria bein* .easure as s)e+iie in
)ara*ra) 2!1 2!2 2!3 2!4 2!5 an 2!6 o -e "ana*e.en- Con-ro, s+ore+ar
5
A =B
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REVISED FINANCIAL SECTOR CODE SERIES FS5. MEASUREMENT OF THE
SKILLS DEVELOPMENT ELEMENT OF BROAD-BASED BLACK ECONOMIC
EMPOWERMENT
STATEMENT FS5. THE GENERAL PRINCIPLES FOR MEASURING SKILLS
DEVELOPMENT
I&&*!% *n%!$ &!c"i#n / (0) # "1! B$#a%-Ba&!% Bac2 Ec#n#ic E,#3!$!n" A!n%!n"Ac" # 405
A$$an6!!n" # "1i& &"a"!!n"
Pa$a S*+7!c" Pa6!
1! OQECTIHE$ OF TI$ $TATE"ENT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!0
2! TE $BILL$ DEHELO#"ENT ELE"ENT $CORECARD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1
3! BE& "EA$%RE"ENT #RINCI#LE$!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2
4! $%"INI"%" AND DI$CO%NTING #RINCI#LE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2
5! GENERAL #RINCI#LE$!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2
6! LEGITI"ATE TRAINING E#EN$E$!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!4
! "EA$%RE"ENT OF $BILL$ DEHELO#"ENT INDICATOR$!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!4
;! ANNEE 300 ?A@!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!5
9! ANNEE 300 ?@!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
6
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1 OBEC3.>ES O$ 3.S S3A3EME:3
1!1 $)e+i= -e s+ore+ar or .easurin* -e $8i,,s Dee,o).en- E,e.en- o EE/
1!2 Deine -e 8e= .easure.en- )rin+i),es asso+ia-e 7i- -e $8i,,s Dee,o).en-
E,e.en-/ an
1!3 Ini+a-e -e or.u,a or .easurin* -e $8i,,s Dee,o).en- E,e.en-
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"<%3E SK.LLS 'E>ELOPME:3 ELEME:3 SCORECAR'
Te o,,o7in* -ab,e re)resen-s -e +ri-eria use or eriin* a s+ore or $8i,,s Dee,o).en-uner -is s-a-e.en-:
D!&c$i,"i#n P#in"& Ta$6!"
4>0
S!ni#$ Mana6!!n" 0>9
2!1!1
$8i,,s Dee,o).en- E')eni-ure on Learnin* #ro*ra..es s)e+iie in -e
Learnin* #ro*ra..e "a-ri' or +ac2 &!ni#$ an% !'!c*"i<! ana6!$& as a
)er+en-a*e o Leiab,e A.oun- a)),i+ab,e -o sa,aries on -is ,ee,
1 2!00
2!1!2
$8i,,s Dee,o).en- E')eni-ure on Learnin* #ro*ra..es s)e+iie in -e
Learnin* #ro*ra..e "a-ri' or +ac2 3#!n &!ni#$ an% !'!c*"i<!
ana6!$& as a )er+en-a*e o Leiab,e A.oun- a)),i+ab,e -o sa,aries on -is
,ee,
0!5 1!00
4>4
Mi%%! Mana6!!n" 0>9
2!2!1
$8i,,s Dee,o).en- E')eni-ure on Learnin* #ro*ra..es s)e+iie in -e
Learnin* #ro*ra..e "a-ri' or +ac2 i%%! ana6!$& as a )er+en-a*e o
Leiab,e A.oun- a)),i+ab,e -o sa,aries on -is ,ee,
1 3!00
2!2!2$8i,,s Dee,o).en- E')eni-ure on Learnin* #ro*ra..es s)e+iie in -eLearnin* #ro*ra..e "a-ri' or +ac2 3#!n i%%! ana6!$& as a
)er+en-a*e o Leiab,e A.oun- a)),i+ab,e -o sa,aries on -is ,ee,
0!5 1!50
4>5
*ni#$ Mana6!!n" 4
2!3!1
$8i,,s Dee,o).en- E')eni-ure on Learnin* #ro*ra..es s)e+iie in -e
Learnin* #ro*ra..e "a-ri' or +ac2 7*ni#$ ana6!$& as a )er+en-a*e oLeiab,e A.oun- a)),i+ab,e -o sa,aries on -is ,ee,
1 5!00
2!3!1
$8i,,s Dee,o).en- E')eni-ure on Learnin* #ro*ra..es s)e+iie in -e
Learnin* #ro*ra..e "a-ri' or +ac2 3#!n 7*ni#$ ana6!$& as a
)er+en-a*e o Leiab,e A.oun- a)),i+ab,e -o sa,aries on -is ,ee,
1 2!50
4>@
Bac2 P!#,! an% n#n-ana6!!n" 4
2!4!1$8i,,s Dee,o).en- E')eni-ure on Learnin* #ro*ra..es s)e+iie in -eLearnin* #ro*ra..e "a-ri' or +ac2 ,!#,! an% n#n-ana6!!n" &"a as
a )er+en-a*e o Leiab,e A.oun- a)),i+ab,e -o sa,aries on -is ,ee,
1 ;!00
2!4!2
$8i,,s Dee,o).en- E')eni-ure on Learnin* #ro*ra..es s)e+iie in -e
Learnin* #ro*ra..e "a-ri' or +ac2 3#!n an% n#n-ana6!!n" &"a
as a )er+en-a*e o Leiab,e A.oun- a)),i+ab,e -o sa,aries on -is ,ee,
1 4!00
4>9
$8i,,s Dee,o).en- E')eni-ure on Learnin* #ro*ra..es s)e+iie in -eLearnin* #ro*ra..e "a-ri' or +ac2 !,#!!& 3i"1 %i&a+ii"i!& as a
)er+en-a*e o Leiab,e A.oun-
2 0!30
4>
Nu.ber o bl!c2 people,(emplo3e$ or unemplo3e$) )ar-i+i)a-in* in
Learnersi)s A))ren-i+esi)s an In-ernsi)s as a )er+en-a*e o -o-a,
e.),o=ees
6 5!00
T#"a 09
4>8B#n*& P#in"&. Nu.ber o une.),o=e b,a+8 )eo),e absorbe b= -e "E (inus-r= a- -e en o -e ,earnersi) )ro*ra..e
4 100
;
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"/%KE MEASREME:3 PR.:C.PLES
3!1 Te o,,o7in* +ri-eria .us- be u,i,,e in orer or -e "easure En-i-= -o re+eie )oin-s on
-e $8i,,s Dee,o).en- s+ore+ar:
3!1!1 or8),a+e $8i,,s #,an an Annua, Trainin* Re)or- an #io-a, Re)or- 7i+ are $ETA
a))roe/ an
3!1!2 I.),e.en-a-ion o #riori-= $8i,,s )ro*ra..e *enera,,= an .ore s)e+ii+a,,= or ,a+8 #eo),e!
3!2 Te +o.),ian+e -ar*e-s uner )ara*ra) 2!4!1 an 2!4!1 in+,ues e'-erna, -rainin*
e')eni-ure or ,a+8 )eo),e -a- are no- e.),o=e b= -e "easure En-i-=!
3!3 A -rainee -ra+8in* -oo, as -o be ee,o)e in orer or -e "easure En-i-= -o s+ore uner )ara*ra) 2!
3!4 I ,ess -an 100 o -e -rainees are Absorbe uner )ara*ra) 2! -e )er+en-a*e a+iee
or Absorbe 7i,, be re+o*nise!
3!5 $8i,,s Dee,o).en- E')eni-ure on ,a+8 )eo),e -a- are +oun-e uner -e $8i,,sDee,o).en- s+ore+ar .a= no- be +oun-e a*ain uner an= o-er EE e,e.en- o -e<$FI or Generi+ $+ore+ar!
"2%SBM.:.MM A:' '.SCO:3.:8 PR.:C.PLE
4!1 A "easure En-i-= .us- a+iee a .ini.u. o 40 o -e -o-a, ei*-in* )oin-s ?e'+,uin* bonus )oin-s@ se- ou- in -e $8i,,s Dee,o).en- E,e.en-
4!2 Non+o.),ian+e -o -e -reso, -ar*e-s 7i,, resu,- in -e oera,, a+iee EE s-a-us
,ee, bein* is+oun-e in a++oran+e 7i- )ara*ra) 3!3!3 o s-a-e.en- 000!
"4%8E:ERAL PR.:C.PLES
5!1 $8i,,s Dee,o).en- .us-:
5!1!1 +on-ribu-e -o -e a+iee.en- o -e +oun-r=s e+ono.i+ *ro7- an so+ia, ee,o).en-*oa,s -a- 7i,, enri+ -e +rea-ion o e+en- 7or8 an sus-ainab,e ,ie,ioos/
5!1!2 su))or- V#roessiona, Ho+a-iona, Te+ni+a, an A+ae.i+ Learnin* ?#IHOTAL@
)ro*ra..es a+iee b= .eans o )roessiona, ),a+e.en-s 7or8in-e*ra-e ,earnin*a))ren-i+esi)s ,earnersi)s an in-ernsi)s -a- .ee- -e +ri-i+a, nees or e+ono.i+
*ro7- an ee,o).en-/ an
5!1!3 s-ren*-en -e s8i,,s an u.an resour+e base b= en+oura*in* -e su))or- o s8i,,s
ee,o).en- ini-ia-ies 7i- an e.)asis on s8i,,s ee,o).en- an +areer )a-in* or a,,
7or8in* )eo),e in orer -o su))or- e.),o=.en- +rea-ion!5!2 Re+o*nisab,e $8i,,s Dee,o).en- E')eni-ure in+,ues an= Le*i-i.a-e Trainin* E')enses
?see )ara*ra) 6 or e'a.),es@ in+urre or an= Learnin* #ro*ra..e oere b= a
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"easure En-i-= -o i-s ,a+8 e.),o=ees an ,a+8 )eo),e eien+e b= an inoi+e or
a))ro)ria-e in-erna, a++oun-in* re+or!
5!3 $8i,,s Dee,o).en- E')eni-ure arisin* ro. +a-e*or= G Learnin* #ro*ra..es uner -eLearnin* #ro*ra..es "a-ri' +anno- in a**re*a-e re)resen- .ore -an 15 o -e -o-a,
a,ue o $8i,,s Dee,o).en- E')eni-ure!
5!4 Te o,,o7in* L!6i"ia"! T$ainin6 E',!n&!& in+urre b= -e "easure En-i-= +anno- ina**re*a-e re)resen- .ore -an 15 o -e -o-a, a,ue o $8i,,s Dee,o).en- E')eni-ure:
5!4!1 a++o..oa-ion o ,earners/
5!4!2 +a-erin* or ,earners a- ,earnin* si-e/5!4!3 -rae,,in* o ,earners -o an ro. -e ,earnin* si-e!
5!5 $a,aries or 7a*es )ai -o an e.),o=ee o -e "easure En-i-= )ar-i+i)a-in* as a ,earner in
an= Learnin* #ro*ra..e on,= +ons-i-u-e $8i,,s Dee,o).en- E')eni-ure i -e Learnin*#ro*ra..e is a Learnsi) In-ernsi) or A))ren-i+esi) ?Ca-e*or= C an D o -e
Learnin* #ro*ra..e "a-ri'@! $a,aries or 7a*es so )ai -o -e e.),o=ee are on,=
+,ai.ab,e or -e )erio oer 7i+ -a- e.),o=ee 7as War-i+i)a-in* in -e Learnsi)
In-ernsi) or A))ren-i+esi)!
5!6 E')enses on s+o,arsi)s an bursaries or e.),o=ees o no- +ons-i-u-e $8i,,s Dee,o).en-E')eni-ure i -e "easure En-i-= +an re+oer an= )or-ion o -ose e')enses ro. -e
e.),o=ee or i -e *ran- o -e s+o,arsi) or bursar= is +oni-iona,! Des)i-e -e aore
*oin* i -e ri*- o re+oer= or -e +oni-ion ino,es ei-er o -e o,,o7in* ob,i*a-ionso -e E.),o=ee -e e')enses are re+o*nisab,e:
5!6!1 -e ob,i*a-ion o su++essu, +o.),e-ion in -eir s-uies 7i-in -e -i.e )erio a,,o+a-e/ or
5!6!2 -e ob,i*a-ion o +on-inue e.),o=.en- b= -e "easure En-i-= or a )erio o,,o7in*
su++essu, +o.),e-ion o -eir s-uies -a- is no- .ore -an -e )erio o -eir s-uies!
"5%LE8.3.MA3E 3RA.:.:8 E@PE:SES
6!1 Le*i-i.a-e Trainin* E')enses in+,ue bu- is no- ne+essari,= ,i.i-e -o:
6!1!1 +os-s o -rainin* .a-eria,s/6!1!2 +os-s o -rainers/
6!1!3 +os-s o -rainin* a+i,i-ies in+,uin* +os-s o +a-erin*/
6!1!4 s+o,arsi)s an bursaries/6!1!5 +ourse ees/
6!1!6 a++o..oa-ion an -rae,/ an6!1! a.inis-ra-ion +os-s su+ as -e or*anisa-ion o -rainin* in+,uin* 7ere a))ro)ria-e -e
+os- o -e "easure En-i-= o e.),o=in* a $8i,,s Dee,o).en- Fa+i,i-a-or a Trainin*
"ana*er or o-er -rainin* s-a
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#7%MEASREME:3 O$ SK.LLS 'E>ELOPME:3 .:'.CA3ORS
Te or.u,ae an e'a.),e -a- e'),ains -e .e-o o .easure.en- o -e +ri-eria in -e $8i,,s
Dee,o).en- s+ore+ar is se- ou- in Anne'e 300 ?@!
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#1%A::E@E $S#77 +A,
Ca" P$#6$a! Na$$a"i<!
D!&c$i,"i#n
D!i<!$ M#%! L!a$nin6
Si"!
L!a$nin6
Ac1i!<!!n"
A ursaries Ins-i-u-ionbase-eore-i+a,
ins-ru+-ion a,one
> or.a,,=
assesse b= -eins-i-u-ion
Ins-i-u-iona,ins-ru+-ion
Ins-i-u-ionssu+ as
uniersi-ies
an
+o,,e*ess+oo,s
AET
)roiers
Re+o*nise-eore-i+a,
8no7,e*e
resu,-in* in -e
a+iee.en- o ae*ree i),o.a or
+er-ii+a-e issue
b= an a++rei-eor.a, ins-i-u-ion
o ,earnin*
B In-ernsi)s Ins-i-u-ionbase
-eore-i+a,ins-ru+-ion as 7e,,as so.e )ra+-i+a,
,earnin* 7i- an
e.),o=er or in a
si.u,a-e 7or8eniron.en- >
or.a,,= assesse
-rou* -eins-i-u-ion
"i'e .oe
e,ier= 7i-ins-i-u-iona,ins-ru+-ion as
7e,, as
su)erise
,earnin* in ana))ro)ria-e
7or8),a+e or
si.u,a-e 7or8eniron.en-
Ins-i-u-ions
su+ asuniersi-iesan
+o,,e*es
s+oo,s
AET )roiers
an
7or8),a+e
Teore-i+a,
8no7,e*e an7or8),a+ee')erien+e 7i- se-
require.en-s
resu,-in* in -e
a+iee.en- o ae*ree i),o.a or
+er-ii+a-e issue
b= an a++rei-e orre*is-ere or.a,
ins-i-u-ion o
,earnin*C In-ernsi)s (
Ar-i+,es
Re+o*nise or
re*is-eres-ru+-ure
e')erien-ia,
,earnin* in -e
7or8),a+e -a- isrequire a-er -e
a+iee.en- o a
qua,ii+a-ion >or.a,,= assesse
b= a s-a-u-or=o++u)a-iona, or )roessiona, bo=
$-ru+-ure
,earnin* in -e7or8),a+e 7i-
.en-orin* or
+oa+in*
or8),a+e O++u)a-iona, or
)roessiona,8no7,e*e an
e')erien+e
or.a,,=
re+o*nise -rou*re*is-ra-ion or
,i+ensin*
D Learnersi)s
orA))ren-i+e
si)s
O++u)a-iona,,=
ire+-eins-ru+-iona, an
7or8base
,earnin*
Ins-i-u-iona,
ins-ru+-ion-o*e-er 7i-
s-ru+-ure
su)erise
Ins-i-u-ion
an7or8),a+e
Teore-i+a,
8no7,e*e an7or8),a+e ,earnin*
resu,-in* in -e
a+iee.en- o a
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)ro*ra..e -a-
requires a or.a,+on-ra+- >
or.a,,= assesse
b= an a++rei-e
bo=
e')erien-ia,
,earnin* in -e7or8),a+e
$ou- Ari+an
<ua,ii+a-ionsAu-ori-=
re*is-ere
qua,ii+a-ion a
+er-ii+a-e or o-ersi.i,ar
o++u)a-iona, or )roessiona,
qua,ii+a-ion issue
b= an a++rei-e or
re*is-ere or.a,ins-i-u-ion o
,earnin*
E or8 >
in-e*ra-e,earnin*
O++u)a-iona,,=
ire+-eins-ru+-iona, an
7or8base
,earnin* )ro*ra..e -a-
oes no- require a
or.a, +on-ra+- >
or.a,,= assesse b= an a++rei-e
bo=
$-ru+-ure
su)erisee')erien-ia,
,earnin* in -e
7or8),a+e7i+ .a=
in+,ue so.e
ins-i-u-iona,
ins-ru+-ion
or8),a+e
ins-i-u-iona,as 7e,, as
AET
)roiers
Crei-s a7are or
re*is-ere uni-s-anars
+on-inue
)roessiona,ee,o).en-
i.)roe
)eror.an+e or
s8i,,s ?e!*! eien+eo ou-)u-s base on
#eror.an+e
Dee,o).en-
#ro*ra..e@F or8),a+e-rainin*
O++u)a-iona,,=ire+-e inor.a,
ins-ru+-iona,
)ro*ra..es
$-ru+-ureinor.a-ion
sarin* or ire+-
ins-ru+-ion
ino,in*7or8so)s
se.inars an
+oneren+es ansor- +ourses
Ins-i-u-ions+oneren+es
an
.ee-in*s
Con-inuin* )roessiona,
ee,o).en-
a--enan+e
+er-ii+a-es an+rei-s a*ains-
re*is-ere uni-
s-anar ?in so.eins-an+es@
G Inor.a,
-rainin*
or8base
inor.a, )ro*ra..es
Inor.a,
-rainin*
or8),a+e In+rease
uners-anin* o ob or 7or8 +on-e'-
or i.)roe )eror.an+e o
s8i,,s
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#"%A::E@E $S#77 +B,
MEASUREMENT OF SKILLS DEVELOPMENT INDICATORS
Te $8i,,s Dee,o).en- +ri-eria )roie or in )ara*ra)s 2 o -e s+ore+ar are
+a,+u,a-e as o,,o7s:
ere
A is -e s+ore a+iee b= a "easure En-i-= in res)e+- o -e .easure.en- o -e $8i,,s
Dee,o).en- +ri-eria s)e+iie in )ara*ra)s 2
B in -e +ase o )ara*ra) 2!1 2!2 2!3 2!4 an 2!5 is -e a.oun- o $8i,,s Dee,o).en-
E')eni-ure e')resse as a )er+en-a*e o -e re,ean- Leiab,e A.oun- o -e
O++u)a-iona, Lee, or -e "easure En-i-= as +a,+u,a-e in Anne'e 300?C@/ #$
B in -e +ase o )ara*ra) 2!6 is -e nu.ber o ,a+8 )eo),e -a- are on Learnersi)sA))ren-i+esi)s an In-ernsi)s e')resse as a )er+en-a*e o -e -o-a, nu.ber o
E.),o=ees o -e "easure En-i-= as +a,+u,a-e in Anne'e 300?C@/ #$
#$
B in -e +ase o )ara*ra) 2! is -e nu.ber o ,a+8 )eo),e -a- +o.),e-e a Learnersi)
#ro*ra..e urin* -e "easure.en- #erio an 7o ae been subsequen-,= Absorbe b= -e "easure En-i-= or -e Inus-r= e')resse as a )er+en-a*e o -e -o-a, nu.ber o
Learnersi) #ro*ra..es -a- ,a+8 )eo),e 7ere enro,,e or an -a- ene urin* -e"easure.en- #erio!
C is -e )er+en-a*e +o.),ian+e Tar*e- in res)e+- o -e a)),i+ab,e +ri-eria bein* .easure as
s)e+iie in -e $8i,,s Dee,o).en- s+ore+ar
D is -e ei*-in* or -e a)),i+ab,e +ri-eria bein* .easure as s)e+iie in -e $8i,,s
Dee,o).en- s+ore+ar
;4
A =B
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REVISED FINANCIAL SECTOR CODE SERIES FS@. MEASUREMENT OF THE
ENTERPRISE AND SUPPLIER DEVELOPMENT ELEMENT OF BROAD-BASED
BLACK ECONOMIC EMPOWERMENT
STATEMENT FS@. THE GENERAL PRINCIPLES FOR MEASURING ENTERPRISE
AND SUPPLIER DEVELOPMENT
I&&*!% *n%!$ &!c"i#n / (0) # "1! B$#a%-Ba&!% Bac2 Ec#n#ic E,#3!$!n" A!n%!n"Ac" # 405
A$$an6!!n" # "1i& &"a"!!n"
Pa$a S*+7!c" Pa6!
1! OQECTIHE$ OF TI$ $TATE"ENT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!9
2! ENTER#RI$E AND $%##LIER DEHELO#"ENT $CORECARD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!;0
3! BE& "EA$%RE"ENT #RINCI#LE$!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!;1
4! GENERAL #RINCI#LE$!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!;3
5! TOTAL "EA$%RED #ROC%RE"ENT $#END!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!;46! ECL%$ION$ FRO" TOTAL "EA$%RED #ROC%RE"ENT $#END!!!!!!!!!!!!!!!!!!!!!!!!!!!;5
! "EA$%RE"ENT OF EE #ROC%RE"ENT $#END!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!;
;! TE CALC%LATION OF #REFERENTIAL #ROC%RE"ENT CONTRI%TION$!!!!!!! !;
9 ENTER#RI$E DEHELO#"ENT AND $%##LIER DEHELO#"ENT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!;;
10! "EA$%RE"ENT OF ENTER#RI$E DEHELO#"ENT AND $%##LIER
DEHELO#"ENT CONTRI%TION$!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!90
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1 OBEC3.>ES O$ 3.S S3A3EME:3%
1!1 $)e+i= -e s+ore+ar or .easurin* <ua,i=in* En-er)rise an $u)),ier Dee,o).en-
Con-ribu-ions/
1!2 $)e+i= -e 8e= .easure.en- )rin+i),es a)),i+ab,e -o +a,+u,a-in* #reeren-ia, #ro+ure.en-+on-ribu-ions/ <ua,i=in* En-er)rise Dee,o).en- an $u)),ier Dee,o).en-
Con-ribu-ions/
1!3 Deine -e )rin+i),es a)),i+ab,e 7en +a,+u,a-in* EE #ro+ure.en- $)en anEn-er)rise Dee,o).en- an $u)),ier Dee,o).en- $)en/ an
1!4 Ini+a-e -e or.u,a or +a,+u,a-in* -e iniiua, +ri-eria s)e+iie in -e En-er)rise an$u)),ier Dee,o).en- s+ore+ar!
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##%E:3ERPR.SE A:' SPPL.ER 'E>ELOPME:3 SCORECAR'
Te o,,o7in* -ab,e re)resen-s -e +ri-eria or eriin* a s+ore or En-er)rise an $u)),ier
Dee,o).en- uner -is s-a-e.en-
D!&c$i,"i#n O"1!$& Ban2&an% Li!
#ic!&
Ta$6!"&!a$ 0-5
Ta$6!"&!a$ 5
W!i61"in6& Ta$6!"&
4>0 P$#c*$!!n" 4 09
2!1!1
EE #ro+ure.en- $)en ro. a,, Empoerin% Suppliers base on -e
EE #ro+ure.en- Re+o*ni-ion Lee,s as a )er+en-a*e o To-a,"easure #ro+ure.en- $)en
5 4 5 ;0
2!1!2
EE #ro+ure.en- $)en from Empoerin% Suppliers 7o are <$Es
base on -e a)),i+ab,e EE #ro+ure.en- Re+o*ni-ion Lee,s as a )er+en-a*e o To-a, "easure #ro+ure.en- $)en
3 2 14 1;
2!1!3
EE #ro+ure.en- $)en from Empoerin% Suppliers 7o are E"Es
base on -e a)),i+ab,e EE #ro+ure.en- Re+o*ni-ion Lee,s as a
)er+en-a*e o To-a, "easure #ro+ure.en- $)en
2 2 ; 12
2!1!4
EE #ro+ure.en- $)en from Empoerin% Suppliers -a- are a- ,eas-
51 b,a+8 o7ne base on -e a)),i+ab,e EE #ro+ure.en-Re+o*ni-ion Lee,s as a )er+en-a*e o To-a, "easure #ro+ure.en- $)en
5 20 30
2!1!5EE #ro+ure.en- $)en from Empoerin% Suppliers -a- are a- ,eas-30 b,a+8 7o.en o7ne base on -e a)),i+ab,e EE #ro+ure.en-
Re+o*ni-ion Lee,s as a )er+en-a*e o To-a, "easure #ro+ure.en- $)en
3 2 9 10
4>4 S*,,i!$ D!<!#,!n" 0
2!2!1Annua, a,ue o a,, S*,,i!$ D!<!#,!n" Con-ribu-ions .ae b= -e
"easure En-i-=10
2 o N#AT
4>5 En"!$,$i&! an% S*,,i!$ D!<!#,!n" 9
2!2!2Annua, a,ue o En"!$,$i&! D!<!#,!n" Con-ribu-ions an $e+-or$)e+ii+ #ro*ra..es .ae b= -e "easure En-i-=
5 01 o N#AT
T#"a 59 09
4>@ B#n*& P#in"&
2!4!1Graua-ion o one or .ore En-er)rise Dee,o).en- benei+iaries -o
*raua-e -o -e $u)),ier Dee,o).en- ,ee,!1 0 1
2!4!2For +rea-in* one or .ore obs ire+-,= as a resu,- o $u)),ier Dee,o).en-
an En-er)rise Dee,o).en- ini-ia-ies b= -e "easure En-i-=!1 0 1
2!4!3
EE #ro+ure.en- $)en ro. ,a+8 $-o+8 ro8ers an In-er.eiaries7o are Empoerin% Suppliers base on -e EE #ro+ure.en-
Re+o*ni-ion Lee,s as a )er+en-a*e o To-a, Ha,ue o a,, Trae 7i-$-o+8bro8ers
0 25
2!4!4EE #ro+ure.en- $)en ro. Desi*na-e Grou) $u)),iers -a- are a-
,eas- 51 ,a+8 o7ne2 2 30 40
2!4!5En-er)rise Dee,o).en- su))or- o ,a+8 $-o+8bro8ers an in-er.eiaries
0 3 0!5 o N#AT
T#"a +#n*& ,#in"& @ 8
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#)%KE MEASREME:3 PR.:C.PLES%
0The Enterprise and upplier Development scorecard consists of:
00 *referential *rocurement4 and
003 Enterprise Development and upplier Development
3!2 <ua,i=in* En-er)rise Dee,o).en- an $u)),ier Dee,o).en- Con-ribu-ions 7i,, be
re+o*nise as a )er+en-a*e o -e )reious =ears annua, Ne- #roi- A-er Ta' ?N#AT@ o -e
"easure En-i-=! For -e aoian+e o oub- i -e "easure En-i-= oes no- .a8e a )roi--en <ua,i=in* En-er)rise Dee,o).en- an $u)),ier Dee,o).en- Con-ribu-ions o
no.ina, a,ue 7i,, earn -e "easure En-i-= -e u,, )oin-s uner )ara*ra)s 2!2 an 2!3
res)e+-ie,=!
3!3 S*+-Mini* an% Di&c#*n"in6 P$inci,!.
3!3!1 A "easure En-i-= ?#"1!$ "1an Ban2& an% Li! Oic!&) .us- a+iee a .ini.u. o
40 o ea+ o -e -o-a, 7ei*-in* )oin-s ?e'+,uin* bonus )oin-s@ o ea+ o -e -ree
+a-e*ories 7i-in -e En-er)rise an $u)),ier Dee,o).en- e,e.en- na.e,= #reeren-ia,#ro+ure.en-/ $u)),ier Dee,o).en- an En-er)rise Dee,o).en-! For -e aoian+e o
oub- -is .eans -a- -e "easure En-i-= .us- a+iee a- ,eas-:
a@ For +o.)anies #"1!$ "1an Ban2& an% Li! Oic!& ro. E.)o7er.en- Finan+in*
?i@ ; )oin-s uner -e #reeren-ia, #ro+ure.en- +a-e*or=/
?ii@ 4 )oin-s uner -e $u)),ier Dee,o).en- +a-e*or=/
?ii@ 2 )oin-s uner -e En-er)rise Dee,o).en- +a-e*or=/
3!3!2 For +o.)anies #"1!$ "1an Ban2& an% Li! Oic!& non+o.),ian+e -o -e -reso,
-ar*e-s 7i,, resu,- in -e oera,, a+iee EE s-a-us ,ee, bein* is+oun-e ina++oran+e 7i- )ara*ra) 3!3!3 o s-a-e.en- 000!
3!4 An E,#3!$in6 S*,,i!$ 7i-in -e +on-e'- o -e Reise Finan+ia, $e+-or Coe is:3!4!1 A "easure En-i-= -a- is EE Co.),ian-!
3!4!2 Co.),ian- 7i- 3 o -e 4 require.en-s ,is- be,o7:
3!4!2!1 A- ,eas- 25 o )ro+ure.en- s)en .us- be ro. ,o+a, su)),iers!
3!4!2!2 50 o ne7 obs +rea-e urin* -e .easure.en- )erio .us- be or b,a+8 )eo),e an -e-o-a, )ro)or-ion o b,a+8 )eo),e sin+e -e ,as- .easure.en- )erio +anno- ae ro))e!
3!4!2!3 A- ,eas- 25 o $ED +on-ribu-ions .us- be ire+-e a- eu+a-ion a+-ii-ies an a- ,eas-
25 o ED +on-ribu-ions .us- be ire+-e a- b,a+8 7o.en o7ne businesses!3!3!2!4 $8i,,s Transer Or*anisa-ions nee -o s)en a .ini.u. nu.ber o a=s as ini+a-e in
-e -ab,e be,o7 in assis-in* En-er)rise Dee,o).en- benei+iaries -o in+rease -eir
o)era-ion an ( or inan+ia, +a)a+i-=! Tis )ro+ess +an be ou-sour+e!
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N*+!$ # !,#!!& in "1! #$6ani&a"i#nN# # Da& S,!n% %#in6 &2i&
"$an&!$ 3i"1 +!n!icia$i!&
0 150 3
150 500 6
500 12
3!5 E'e.)-e "i+ro En-er)rises an $-ar-u)s are au-o.a-i+a,,= re+o*nise as E.)o7erin*
$u)),iers!
3!6 Te ei*-in* )oin-s in -e En-er)rise an $u)),ier Dee,o).en- s+ore+ar re)resen- -e
.a'i.u. nu.ber o )oin-s )ossib,e or ea+ o -e +ri-eria!
3! En1anc!% P$#c*$!!n" R!c#6ni"i#n
I a "easure En-i-= )ro+ures *oos an seri+es ro. a $u)),ier -a- is:
3!!1 a re+i)ien- o <ua,i=in* $u)),ier Dee,o).en- Con-ribu-ions ro. a "easure En-i-=
uner Coe series F$400 -a- as a .ini.u. 3 =ear +on-ra+- 7i- -e "easure En-i-= -e
re+o*nisab,e EE #ro+ure.en- $)en -a- +an be a--ribu-e -o -a- $u)),ier is.u,-i),ie b= a a+-or o 1!2/
3!!2 a 51 ,a+8 O7ne <$E or <$FI or E"E 7i+ is no- a su)),ier ee,o).en- benei+iar= bu- -a- as a .ini.u. 3 =ear +on-ra+- 7i- -e "easure En-i-= -e
re+o*nisab,e EE #ro+ure.en- $)en -a- +an be a--ribu-e -o -a- $u)),ier is
.u,-i),ie b= a a+-or o 1!2/
3!!3 a irs- -i.e $u)),ier -o -e "easure En-i-= -e re+o*nisab,e EE #ro+ure.en- $)en
-a- +an be a--ribu-e -o -a- $u)),ier is .u,-i),ie b= a a+-or o 1!2/
3!; #ro+ure.en- o *oos an seri+es an an= o-er a+-ii-ies -a- a,, uner 2!1 7i,, no-
qua,i= or s+orin* uner 2!2 an 2!3 an i+e ersa!
3!; enei+iaries o <ua,i=in* $u)),ier Dee,o).en- an En-er)rise Dee,o).en-
Con-ribu-ions are E"Es <$FIs or <$Es 7i+ are a- ,eas- 51 ,a+8 O7ne or a- ,eas-51 ,a+8 o.an O7ne!
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#<%8E:ERAL PR.:C.PLES
10To stren6then local procurement in order to help build outh #fricaJs
industrial base in critical sectors of production and value addin6
manufacturin6, /hich are lar6ely labor7intensive industries0
103To increase local procurement throu6h capacity buildin6 achieved by
incentivi8in6 appropriate local supplier development pro6rammes by
businesses supplyin6 imported 6oods and services0
10The imports provisions do not apply to the desi6nated sectors and
products for local production, as and /hen published0
101To actively support procurement from H -lac. &/ned !Is and
EMEs by identifyin6 opportunities to increase procurement from local
suppliers in order to support employment creation0
10To support procurement from H -lac. &/ned and 'H -lac. Boman
o/ned businesses in order to increase the participation of these
businesses in the mainstream economy0
102To promote the use of the H -lac. &/ned professional serviceproviders and Entrepreneurs as uppliers0
10>Measured Entities receive reco6nition for any ualifyin6 Enterprise
Development and upplier Development $ontributions that are
5uantifiable as a monetary value usin6 a tandard Valuation Method0
10?Measured Entities are encoura6ed to ali6n their Enterprise Development
and upplier Development initiatives /ith the desi6nated sectors of 6overnmentJs localisation and value addin6 pro6rammes, /here this is
possible in the !inancial ervices space0
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10+Measured Entities are encoura6ed to ali6n their Enterprise Development
and upplier Development initiatives /ith their supply chain re5uirements
thereby lin.in6 Enterprise Development and upplier Development /ith
*referential *rocurement0
10' ualifyin6 Enterprise Development and upplier Development
$ontributions of any Measured Entity are reco6nisable on an annual
basis0
10 Bhere contributions, pro6rammes andAor initiatives span over multiple
years, the total contribution amount must be divided by the number of
years, and the avera6e per year is then to be utilised for the annual
contribution0
103 Measured Entities are encoura6ed to develop and implemented an
Enterprise Development plan and upplier Development plan for a
beneficiary of their ualifyin6 Enterprise Development and upplier
Development $ontributions0 The plan should include0
4!12!1 C,ear Obe+-ies
4!12!2 #riori-= in-eren-ions
4!12!3 Be= )eror.an+e ini+a-ors/ an
1 # concise implementation plan /ith clearly articulated milestones0
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10 Measured Entities /ill not 6et reco6nition for the same activities
underta.en under 303 and 30, they /ill only 6et reco6nition for one of the
t/o i0e0 303 or 30
101 "o portion of the value of any ualifyin6 Enterprise Development and
upplier Development $ontribution that is payable to the beneficiary or
on behalf of the beneficiary after the last day of the Measurement *eriod
can form part of any calculation under this statement0
#/%3O3AL MEASRE' PROCREME:3 SPE:'
Te o,,o7in* )ro+ure.en- is .easurab,e 7i-in To-a, "easure #ro+ure.en- $)en:
0Cost of sales& all 6oods and services procured that comprise the cost of
the sales of the Measured Entity4
03Operational e*penditure& all 6oods and services procured that comprise
the operational e=penditure of the Measured Entity4
0Capital e*penditure: all capital e=penditure incurred by the Measured
Entity4
01*ublic sector procurement:
1%1%)7 all 6oods and services procured from or6ans of state and publicentities0 Despite this, procurement by a Measured Entity from a local6overnment authority, /hich is a reseller of that service, is measurableat the -7--EE Reco6nition %evel of the primary upplier of the service4and
1%1%)1 in any event, any procurement of any 6oods or services from anyor6an of state or public entity that en;oys a statutory or re6ulatedmonopoly in the supply of such 6oods or services, is e=cluded4
5!5 "ono)o,is-i+ )ro+ure.en-: a,, *oos an seri+es )ro+ure ro. $u)),iers -a- eno= a
.ono)o,is-i+ )osi-ion/
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5!6 T1i$%-,a$" ,$#c*$!!n". a,, )ro+ure.en- or a -ir)ar-= or a +,ien- 7ere -e +os- o
-a- )ro+ure.en- is an e')ense re+ore in -e "easure En-i-=Xs annua, inan+ia,s-a-e.en-s/
5! La+#$ +$#2!$& an% in%!,!n%!n" c#n"$ac"#$&. an= )ro+ure.en- o -e "easure En-i-=-a- is Ou-sour+e Labor E')eni-ure/
5!; P!n&i#n an% !%ica ai% c#n"$i+*"i#n&: )a=.en-s .ae -o an= )os- re-ire.en- unin*s+e.e or -o a .ei+a, ai or si.i,ar .ei+a, insurer b= a "easure En-i-= or i-s
E.),o=ees e'+,uin* an= )or-ions o su+ )a=.en-s 7i+ are a +on-ribu-ion -o a +a)i-a,
ines-.en- o -e E.),o=ee! Te s+e.e or insurer .us- issue a +er-ii+a-e iiin*
)a=.en-s be-7een -e +a)i-a, ines-.en- )or-ion an -e ba,an+e -o es-ab,is -e a.oun- -a-is .easurab,e 7i-in To-a, "easure #ro+ure.en- $)en/
5!9 T$a%! c#i&&i#n&. an= +o..ission or si.i,ar )a=.en-s )a=ab,e b= a "easure En-i-= -o
an= o-er )erson )ursuan- -o -e business or -rae o -e "easure En-i-=:
5!10 E,#3!$!n" $!a"!% !',!n%i"*$!. a,, *oos an seri+es )ro+ure in +arr=in* ou- EE! Te To-a, "easure #ro+ure.en- $)en oes no- in+,ue -e a+-ua, +on-ribu-ion
)or-ion re+o*nise uner se+-ion 2!2 an 2!3 o -is s-a-e.en- an Coe series 500 bu- oes
in+,ue an= e')eni-ure in+urre in a+i,i-a-in* -ose +on-ribu-ions/
5!11 I,#$"&. a,, *oos an seri+es -a- are i.)or-e or )ro+ure ro. a non$ou- Ari+an
sour+e an
5!12 In"$a-6$#*, ,$#c*$!!n". a,, *oos an seri+es )ro+ure ro. subsiiaries or o,in*
+o.)anies o -e "easure En-i-= ?EE +reen-ia,s o -e en-i-= su)),=in* *oos an(or
seri+es .us- be +onir.e b= 7a= o a a,i EE +er-ii+a-e@! Tis is no- a)),i+ab,e 7ere-e subsiiaries or o,in* +o.)anies or. )ar- o -e "easure En-i-ies Conso,ia-e EE
+er-ii+a-e!
0 Bro6er Co!!issions and co!!issions paid to insurance
inter!ediaries& this inclusion /ill only apply for the first years follo/in6
the implementation date of the Revised !$00
#2%[email protected]:S $ROM 3O3AL MEASRE' PROCREME:3 SPE:'
Te o,,o7in* ,is- )roies )er.issib,e e'+,usions ro. To-a, "easure #ro+ure.en- $)enre+o*nisab,e in -er.s o )ara*ra) 5:
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203a*ation& any amount payable to any person /hich represents a la/ful
ta= or levy imposed by an or6an of state authorised to impose such ta= or
levy, includin6 rates imposed by a municipality or other local 6overnment4
6!2 Saa$i!&? 3a6!&? $!*n!$a"i#n&? an% !#*!n"&. an= a.oun- )a=ab,e -o an E.),o=ee asan e,e.en- o -eir sa,ar= or 7a*e an an= e.o,u.en- or si.i,ar )a=.en- )ai -o a ire+-or
o a "easure En-i-=/
6!3 Pa&&-"1$#*61 "1i$%-,a$" ,$#c*$!!n". a,, )ro+ure.en- or a -ir)ar-= or a +,ien- -a- isre+ore as an e')ense in -e -ir)ar-= or +,ien-Xs annua, inan+ia, s-a-e.en-s bu- is no-
re+ore as su+ in -e "easure En-i-=Xs annua, inan+ia, s-a-e.en-s/
6!4 E,#3!$!n" $!a"!% ,$#c*$!!n".
6!4!1 Ines-.en-s in or ,oans -o an Asso+ia-e En-er)rise/
6!4!2 Ines-.en-s ,oans or ona-ions qua,i=in* or re+o*ni-ion uner an= s-a-e.en- uner Coe
series F$400 or F$500/
20 Imports: the follo/in6 imported 6oods and services:6!5!1 i.)or-e +a)i-a, *oos or +o.)onen-s or a,ueae )rou+-ion in $ou- Ari+a )roie
-a-:6!5!1!1 -ere is no- sui+ien- e'is-in* ,o+a, )rou+-ion o su+ +a)i-a, *oos or +o.)onen-s/
an
6!5!1!2 i.)or-in* -ose +a)i-a, *oos or +o.)onen-s )ro.o-es ur-er a,ueae
)rou+-ion 7i-in $ou- Ari+a/6!5!2 i.)or-e *oos an seri+es o-er -an -ose ,is-e in )ara*ra) 6!5!1 i -ere is no-
sui+ien- ,o+a, )rou+-ion o -ose *oos or seri+es in+,uin* bu- no- ,i.i-e -o i.)or-e
*oos or seri+es -a- 6!5!2!1 +arr= a bran ieren- -o -e ,o+a, )rou+e *oos or seri+es/ or
6!5!2!2 ae ieren- -e+ni+a, s)e+ii+a-ions -o -e ,o+a,,= )rou+e *oos or seri+es!
6!5!3 Te e'+,usion o i.)or-s ,is-e uner 6!5!2 are sube+- -o -e "easure En-i-= or -e inus-r=-a- -e "easure En-i-= o)era-es in ain* ee,o)e an i.),e.en-e an En-er)rise
Dee,o).en- or $u)),ier Dee,o).en- ),an or su))or-in* qua,i=in* E.)o7erin*
$u)),iers -a- .anua+-ure *oos an seri+es ,o+a,,= -a- are o-er7ise nor.a,,= i.)or-e!
Te ),an oes no- nee -o re,a-e -o -e s)e+ii+ *oos or seri+es -a- -e "easure En-i-=i.)or-s! Tis ),an sou, in+,ue:
6!5!3!1 C,ear Obe+-ies
6!5!3!2 #riori-= in-eren-ions6!5!3!3 Be= )eror.an+e ini+a-ors/ an
6!5!3!4 A +on+ise i.),e.en-a-ion ),an 7i- +,ear,= ar-i+u,a-e .i,es-ones
6!5!4 Te De)ar-.en- o Trae an Inus-r= 7i,, ro. -i.e -o -i.e +onsu,- 7i- -e inus-r= anissue )ra+-i+e no-es 7i- re*ar -o -e )roisions on i.)or- e'+,usions!
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202 .ntra0(roup procure!ent: /here the Measured Entity is conductin6 a
consolidated verification of itself as holdin6 entity to6ether /ith its
subsidiaries, then all intra76roup procurement of 6oods and services
amon6st the 6roup entities formin6 part of the consolidated verification
are e=cluded0
20>Property e*penditure& #ny amounts payable in consideration for
property ac5uisitions or rentals /here the financial institutions hold such
property interests as an investment, on behalf of a third party, rather than
for operational purposes4
20?Reinsurance premiums4
20+8lobal Suppliers& #ny items of procurement /here the supplier is
imposed in terms of a lobal *olicy for technical (but specifically not
commercial) reasons4
20' Bro6er Co!!issions and co!!issions paid to insurance
inter!ediaries& this e=clusion /ill only apply for the first years
follo/in6 the implementation date of the Revised !$0 This allo/s these
entities sufficient time to implement their -EE initiatives0 !or avoidance of
doubt K follo/in6 year three of the implementation of the Revised !$,
-ro.er commissions and commissions paid to insurance intermediaries
/ill be an included procurement spend0
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#4%MEASREME:3 O$ B0BBEE PROCREME:3 SPE:'
>0-7--EE *rocurement pend is the value of the procurement fallin6
/ithin para6raph and not e=cluded by para6raph 20 If a supplier falls
/ithin a cate6ory of upplier listed in para6raph 0>, the value of procurement from that upplier is multiplied by the applicable factor listed
in that para6raph0
>03-7--EE *rocurement pend can be measured in terms of formula O#G in
#nne= !1''(#)0
>0The -7--EE *rocurement pend for a Measured Entity in respect of a
upplier is calculated by multiplyin6 the spend contemplated by
para6raph (and not e=cluded in para6raph 2) in respect of that upplier
by the upplierJs -7--EE Reco6nition %evel0
>01# Measured EntityJs Total *rocurement pend is the total of all amounts
calculated in terms of para6raph >00
5/> 3E CALCLA3.O: O$ PRE$ERE:3.AL PROCREME:3 CO:3R.B3.O:S TO
B-BBEE
?0# measured Entity receives a score for procurement in proportion to the
e=tent that it meets the compliance Tar6et0
?03The Measured EntityJs score for *referential *rocurement contributions to-7--EE under the preferential procurement scorecard can be calculated
in terms of formula O-O in #nne= !1''(#)0
@> E:3ERPR.SE 'E>ELOPME:3 A:' SPPL.ER 'E>ELOPME:3
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CONTRIBUTIONS
Te o,,o7in* is a none'aus-ie ,is- o <ua,i=in* En-er)rise Dee,o).en- an $u)),ier Dee,o).en- Con-ribu-ions:
+0 investments in ualifyin6 -eneficiary Entities4
+03 loans made to ualifyin6 -eneficiary Entities4
+06uarantees 6iven or security provided on behalf of ualifyin6 -eneficiary
Entities4
+01credit facilities made available to ualifyin6 -eneficiary Entities4
+06rant contributions to ualifyin6 -eneficiary Entities4
+02direct costs incurred by a Measured Entity in assistin6 and hastenin6
development of ualifyin6 -eneficiary Entities4
+0>overhead costs of the Measured Entity directly attributable to ualifyin6
Enterprise Development and upplier Development $ontributions4
+0?preferential credit terms 6ranted by a Measured Entity to ualifyin6
-eneficiary Entities4
+0+preferential terms 6ranted by a Measured Entity in respect of its supply of
6oods and services to ualifyin6 -eneficiary Entities4
+0' contributions made to/ards the settlement of the cost of services
relatin6 to the operational or financial capacity andAor efficiency levels of
a ualifyin6 -eneficiary Entity includin6, /ithout limitation:
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1%1%)" professional and consultin6 services4
1%1%)# licensin6 andAor re6istration fees4
1%1%)) industry specific levies andAor other such fees4 and
1%1%)< IT services4
+0 discounts 6iven to ualifyin6 -eneficiary Entities in relation to the
ac5uisition and maintenance costs associated /ith the 6rant to those
ualifyin6 -eneficiary Entities of franchise, licence, a6ency, distribution
or other similar business ri6hts4
+03 the creation or development of capacity and e=pertise for ualifyin6
-eneficiary Entities needed to manufacture or produce 6oods or service
previously not manufactured, produced or provided in the Republic of
outh #frica as provided for in overnmentJs economic 6ro/th and local
supplier development policies and initiatives4
+030 such contributions /ill be measured as the rand value of
monetary contributions made, as /ell as investments into, loans made toor 6uarantees 6iven to -eneficiary Entities4
+0 the creation or development of ne/ pro;ects promotin6 beneficiation by
the Measured Entity for the benefit of ualifyin6 -eneficiary Entities0
+01 facilitatin6 access to credit for ualifyin6 -eneficiary Entities /ithout
access to traditional credit facilities o/in6 to a lac. of credit history, hi6h7
ris. or lac. of collateral on the part of the ualifyin6 -eneficiary Entity4
+0 provision by the Measured Entity, of preferential credit facilities to a
ualifyin6 -eneficiary Entity0 E=amples of such contributions include
/ithout limitation:
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1%1%)/ provisions of finance to ualifyin6 -eneficiary Entities at lo/er thancommercial rates of interest0 uch contributions /ill be measured asthe value of the differential bet/een the actual interest rate provided tothe -eneficiary Entity and the applicable rate4
1%1%)2 rela=ed security re5uirements or absence of security re5uirements for ulifyin6 -eneficiary Entities unable to provide security for loans0uch contributions shall be measured as bein6 H (three percent) of any positive differential bet/een the initial capital value of the loanand the value of security ta.en4 and
1%1%)4 settlement of accounts /ith ualifyin6 -eneficiary Entities over ashorter period of time in relation to the Measured EntityJs normalpayment period, provided the shorter period is no lon6er than daysafter date of invoice0 *referential payment terms that e=tend beyond days /ill not 5ualify as ualifyin6 Enterprise Development andupplier Development $ontributions4
+02 the provision of seed or development capital to ualifyin6 -eneficiary
Entities4
+0> provision of trainin6 or mentorin6 by suitably 5ualified entities or
individuals to ualifyin6 -eneficiary Entities /hich /ill assist such
Entities to increase their operational or financial capacity4 and
+0? provision of trainin6 or mentorin6 to ualifyin6 -eneficiary Entities by
the Measured Entity itself4
99
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1%1%)5 such contributions are measurable by 5uantifyin6 the cost of time(e=cludin6 travel or commutin6 time) spent by staff or mana6ement of the Measured Entity in carryin6 out such initiatives4
1%1%<7 a clear ;ustification, commensurate /ith the seniority and e=pertise of
the trainer or mentor, must support any claim for time costs occurred4
1%1%<1 $ommon forms of such contribution include, /ithout limitation:
1%1%<1%1 *rofessional and consultin6 services4
1%1%<1%" IT services4 and
1%1%<1%# any other services /hich help to increase the entity<s financialand A or operational capacity and /hich have not also been accountedfor under $ode !'' .ills Development0
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+0+ Trainin6 or mentorin6 provided as per +0> and +0? above may not be
double counted under the .ills Development scorecard once claimed as
ualifyin6 Enterprise and upplier Development $ontribution and vice
versa0
+03' the maintenance by the Measured Entity of an Enterprise Development
and upplier Development unit /hich focuses e=clusively on support of
ualifyin6 -eneficiary Entities or candidate beneficiary entities0
+03'0 only that portion of salaries and /a6es attributable to time spent bythe staff in, and the other e=penses that relates to, promotin6 or implementin6 ualifyin6 Enterprise and upplier Development
$ontributions, 5ualify for reco6nition0
+03 payments made by the Measured Entity to suitably 5ualified and
e=perienced third parties to perform Enterprise Development and
upplier Development on the Measured EntityJs behalf0
+030 for the avoidance of doubt such contributions are re6arded as havin6
been initiated and implemented once they become payable to the thirdparty4
)1%MEASREME:3 O$ E:3ERPR.SE 'E>ELOPME:3 A:' SPPL.ER'E>ELOPME:3 CO:3R.B3.O:S
'0 # measured Entity (other than -an.s and %ife offices) receives a score
for Enterprise Development and upplier Development in proportion to
the e=tent that it meets the compliance tar6et0
'03 ualifyin6 $ontributions are measurable usin6 the formula O#O in
#nne=e !1''(-)
ANNEXE FS@ (A)
A. B-BBEE PROCUREMENT SPEND.
A -e su. o ? ' C@
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ere
A is -e +a,+u,a-e -o-a, EE #ro+ure.en- $)en or -e "easure En-i-=! I- is equa, -o -esu. o -e resu,- o -e )rou+- o an C or ea+ $u)),ier o -e "easure En-i-= no- e'+,ue
uner -e e'+,usion ro. To-a, "easure #ro+ure.en- $)en/
B is -e a,ue o )ro+ure.en- a,,in* 7i-in To-a, "easure #ro+ure.en- $)en an no- e'+,ue
uner -e e'+,usion ro. To-a, "easure #ro+ure.en- $)en ro. ea+ $u)),ier o -e "easure
En-i-= or -e "easure.en- #erio
C is -e ,a-es- EE #ro+ure.en- Re+o*ni-ion Lee, o ea+ $u)),ier o -e "easure En-i-=
-a- +an be su))or-e b= a EE erii+a-ion +er-i+a-e ?or s7orn aiai- in -e +ase o 51 or
100 ,a+8 O7ne E"Es an <$FIs@ -a- 7as a,i a- an= -i.e ro. -e +o..en+e.en- o -e "easure.en- #erio u) -o -e issuein* o -e "easure En-i-ies EE erii+a-ion
+er-ii+a-e!
B. THE CALCULATION OF PREFERENTIAL PROCUREMENT CONTRIBUTIONS TO
B-BBEE.
ere
A is -e +a,+u,a-e )reeren-ia, )ro+ure.en- s+ore or 2!1!1 2!1!2 2!1!3 2!1!4 2!1!5 an 2!1!6
res)e+-ie,= in -e #reeren-ia, #ro+ure.en- s+ore+ar uner s-a-e.en- 400 or -e "easure
En-i-=/
B is -e -o-a, EE #ro+ure.en- $)en o -e "easure En-i-= +a,+u,a-e or ea+ o -e
ini+a-ors o -e #reeren-ia, #ro+ure.en- s+ore+ar ?)ar 2!1!1 2!1!2 2!1!3 2!1!4 2!1!5 an 2!1!6@res)e+-ie,= e')resse as a )er+en-a*e o -e To-a, "easure #ro+ure.en- $)en o -a- "easure
En-i-=/
C is -e +o.),ian+e Tar*e- or ea+ o -e ini+a-ors o -e #reeren-ia, #ro+ure.en- s+ore+ar?)ar 2!1!1 2!1!2 2!1!3 2!1!4 2!1!5 an 2!1!6@ res)e+-ie,=/
D is -e ei*-in* )oin-s a,,o+a-e -o ea+ o -e ini+a-ors o -e #reeren-ia, #ro+ure.en-s+ore+ar ?)ar 2!1!1 2!1!2 2!1!3 2!1!4 2!1!5 an 2!1!6@ res)e+-ie,=
102
A =B
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ANNEXE FS@ (B)
Anne'e 400 > En-er)rise Dee,o).en- an $u)),ier Dee,o).en- enei- Fa+-or "a-ri'
;*aiin6 C#n"$i+*"i#n ",! C#n"$i+*"i#n A#*n" B!n!i" Fac"#$
G$an" an% R!a"!% C#n"$i+*"i#n&
Gran- Con-ribu-ion Fu,, Gran- A.oun- 100
Dire+- Cos- in+urre in
su))or-in* En-er)rise
Dee,o).en- an $u)),ier
Dee,o).en-
Heriiab,e Cos- ?in+,uin*
bo- .one-ar= an non
.one-ar=@
100
Dis+oun-s in ai-ion -o nor.a,
business )ra+-i+es su))or-in*
En-er)rise Dee,o).en- an$u)),ier Dee,o).en-
Dis+oun- A.oun- ?in ai-ion
-o nor.a, business is+oun-@
100
Oerea Cos-s in+urre in
su))or-in* En-er)riseDee,o).en- an $u)),ier
Dee,o).en- ?in+,uin* )eo),e
a))oin-e in En-er)riseDee,o).en- an $u)),ier
Dee,o).en-@
Heriiab,e Cos- ?in+,uin*
bo- .one-ar= an non.one-ar=@
0
L#an& an% R!a"!% C#n"$i+*"i#n&
In-eres-Free Loan 7i- nose+uri-= require.en-s
su))or-in* En-er)rise
Dee,o).en- an $u)),ierDee,o).en-
Ou-s-anin* Loan A.oun- 0
$-anar Loan -o En-er)rise
Dee,o).en- an $u)),ierDee,o).en- enei+iaries
Ou-s-anin* Loan A.oun- 50
Guaran-ees )roie on bea,
o a benei+iar= en-i-=
Guaran-ee A.oun- 3
Lo7er In-eres- Ra-e Ou-s-anin* ,oan a.oun- #ri.e Ra-e > A+-ua,
Ra-e
E=*i" In<!&"!n"& an% R!a"!% C#n"$i+*"i#n&
"inori-= Ines-.en- inEn-er)rise Dee,o).en- an
$u)),ier Dee,o).en-enei+iaries
Ines-.en- A.oun- 0
En-er)rise Dee,o).en- an$u)),ier Dee,o).en-
Ines-.en- 7i- ,o7er iien
-o inan+ier
Ines-.en- A.oun- Diien Ra-e oOrinar= $areo,ers
> A+-ua, Diien Ra-e
o Con-ribu-or
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C#n"$i+*"i#n& a%! in "1! #$ # 1*an $!&#*$c! ca,aci"
#roessiona, seri+es renere
a- no +os- an su))or-in*
En-er)rise Dee,o).en- an$u)),ier Dee,o).en-
Co..er+ia, our,= ra-e o
)roessiona,
60
#roessiona, seri+es renerea- is+oun- an su))or-in*
En-er)rise Dee,o).en- an
$u)),ier Dee,o).en-
Ha,ue o is+oun- base on+o..er+ia, our,= ra-e o
)roessiona,
60
Ti.e o e.),o=ees o "easure
En-i-= )rou+-ie,= e),o=e inassis-in* benei+iaries
"on-,= sa,ar= iie b=
160
60
O"1!$ C#n"$i+*"i#n&
$or-er )a=.en- )erios or 2!2
o -is s-a-e.en- ?$u)),ier
Dee,o).en-@
#er+en-a*e o inoi+e
a.oun- .u,-i),ie b= 15
?bein* an a))ro'i.a-ion o-e +os- o sor- -er. unin*@
#er+en-a*e bein* 15
a=s ,ess -e nu.ber o
a=s ro. inoi+e -o )a=.en-! Te"a'i.u. )oin-s -a-
+an be s+ore is 15 o
10 )oin-s
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ANNEXE FS@ (B)
A. ;*aiin6 En"!$,$i&! an% S*,,i!$ D!<!#,!n" C#n"$i+*"i#n& a$! !a&*$a+! #n "1!
##3in6 +a&i&.
ere
A is -e s+ore a+iee or -e En-er)rise an $u)),ier Dee,o).en- ini+a-ors ?)ara*ra)
2!2 an 2!3@ in res)e+- o <ua,i=in* En-e)rise or $u)),ier Dee,o).en- Con-ribu-ions
.ae b= -e "easure En-i-=
B is -e annua, a,ue o a,, <ua,i=in* En-er)rise or $u)),ier Dee,o).en- Con-ribu-ions
7i+eer -e +ase .a= be -a- ae be+o.e )a=ab,e b= -e "easure En-i-= urin* -e"easure.en- #erio
C is -e +o.),ian+e Tar*e-s or -e En-er)rise an $u)),ier Dee,o).en- ini+a-ors
?)ara*ra) 2!2 an 2!3@ res)e+-ie,=
D is -e ei*-in* )oin-s a,,o+a-e -o -e En-er)rise an $u)),ier Dee,o).en- ini+a-ors
?)ara*ra) 2!2 an 2!3@ res)e+-ie,=
105
A =B
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REVISED CODE SERIES FS 9. MEASUREMENT OF THE SOCIO-ECONOMIC
DEVELOPMENT AND CONSUMER EDUCATION ELEMENTS OF BROAD-BASED
BLACK ECONOMIC EMPOWERMENT
STATEMENT FS9. THE GENERAL PRINCIPLES FOR MEASURING THE SOCIO-ECONOMIC DEVELOPMENT AND CONSUMER EDUCATION ELEMENT
I&&*!% *n%!$ &!c"i#n / (0) # "1! B$#a%-Ba&!% Bac2 Ec#n#ic E,#3!$!n" A!n%!n"
Ac" # 405
A$$an6!!n" # "1i& &"a"!!n"
Pa$a S*+7!c" Pa6!
1! OQECTIHE$ OF TI$ $TATE"ENT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!96
2! TE $ED AND CE $CORECARD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!96
3! BE& "EA$%RE"ENT #RINCI#LE$!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!9
4! "EA$%RE"ENT OF $OCIOECONO"IC DEHELO#"ENT AND CON$%"ER
ED%CATION CONTRI%TION$!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!101
5! TE ENEFIT FACTOR "ATRI A##LICALE TO $OCIOECONO"ICDEHELO#"ENT CONTRI%TION$!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!101
6! Anne'e 500 ?A@ > enei- Fa+-or "a-ri'!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!102
! ANNEE 500 ?@!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!103
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1 OBEC3.>ES O$ 3.S S3A3EME:3
Te obe+-ies o -is s-a-e.en- are -o s)e+i=:
1!1 -e $o+ioE+ono.i+ Dee,o).en- ?$ED@ an Consu.er Eu+a-ion ?CE@ Con-ribu-ionss+ore+ar/
1!2 -e 8e= .easure.en- )rin+i),es a)),i+ab,e 7en +a,+u,a-in* <ua,i=in* $o+ioE+ono.i+
an Consu.er Eu+a-ion Con-ribu-ions/ an
1!3 -e or.u,a or +a,+u,a-in* -e iniiua, +ri-eria s)e+iie in -e $ED an CE s+ore+ar!
" 3E SE' A:' CE SCORECAR'
The follo/in6 table represents the criteria and method used for derivin6 ascore for ocio7Economic Development and $onsumer Education under
this statement:
E!!n"
In"!$na"i#n
a Ban2&
an%
R!in&*$!$&
Ta$6!"
O"1!$
In&"i"*"i#n&
Ta$6!" P#in"&
2!1
Annua, a,ue o a,, <ua,i=in* $o+io
E+ono.i+ Dee,o).en- Con-ribu-ions b=-e "easure En-i-= as a )er+en-a*e o N#AT
0! 0!60 3
2!!2
Annua, a,ue o a,, <ua,i=in* Consu.er
Eu+a-ion Con-ribu-ions b= -e
"easure En-i-= as a )er+en-a*e o
N#AT
0 0!40 2
T#"a >8: 0>: 9
2!3 B#n*& P#in"&
2!3!1
Ai-iona, $ED +on-ribu-ions .ae b=
-e "easure En-i-= as a )er+en-a*e o
N#AT
0!20 0!20 1
2!3!
2
Ai-iona, CE +on-ribu-ions .ae b= -e
"easure En-i-= as a )er+en-a*e o
N#AT
0!10 0!10 1
2!3!3
Con-ribu-ion -o Funisa Re-ai, Fun 0!20 0!2 2
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The /ei6htin6 points in the ED and $E scorecard represent the ma=imum
number of points possible for each of the criteria
)"%KE MEASREME:3 PR.:C.PLES
@4>0 <ua,i=in* $o+ioe+ono.i+ Dee,o).en- an Consu.er Eu+a-ion Con-ribu-ions 7i,, be
re+o*nise as a )er+en-a*e o -e )reious =ears Annua, Ne- #roi- A-er Ta' ?N#AT@ o -e"easure En-i-=! For -e aoian+e o oub- i -e "easure En-i-= oes no- .a8e a )roi-
-en <ua,i=in* Con-ribu-ions o no.ina, a,ue 7i,, earn -e "easure En-i-= -e u,, )oin-s
uner )ara*ra)s 2!1 an 2!2 res)e+-ie,=!
@4>4 For ban8s -e Annua, Ne- #roi- a-er Ta' -o be us is -e Annua, Ne- #roi- a-er Ta'*enera-e b= re-ai, o)era-ions!
0 ocio7Economic Development *ro6rammes conceptualised andmeasured under this $ode may include, but /ill not be limited to, one of the follo/in6 forms:
00 Education: support for community education facilities, pro6rammesat,secondary and tertiary education levels aimed at promotin6 theindustry, bursaries and scholarships, /hich are oriented to/ards thehard sciences4
003 Trainin6: community trainin6, s.ills development for the unemployed,
adult basic education and trainin6 in communities, financial literacypro6rammes in communities4
00 Development pro6rammes for youth and other tar6et 6roups4
001 Environment: support of conservation pro;ects, community cleanuppro;ects, food 6arden initiatives4
00 9ob $reation: ;ob creation pro;ects e=ternal to the /or.place or anycommitments contained in empo/erment financin64
002 #rts and culture: support of development pro6rammes, development of
ne/ talent4
00> ealth: support of community clinics, health pro6rammes in thecommunity4 and
00? port: support of developmental pro6rammes0
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01 ocio7Economic Development *ro6rammes in outh #frica can befunded directly from the philanthropic arms of international institutionssituated outside of outh #frica (provided that such benefits do notaccrue to other ;urisdictions)0
)#%8E:ERAL PR.:C.PLES
4!1 "easure En-i-ies re+eie re+o*ni-ion or an= $o+ioE+ono.i+ Dee,o).en- an Consu.er
Eu+a-ion Con-ribu-ions -a- are quan-iiab,e as a .one-ar= a,ue usin* a $-anar Ha,ua-ion
"e-o!4!2 <ua,i=in* Con-ribu-ions o -e "easure En-i-= are re+o*nisab,e annua,,=/
4!2!1 ere <ua,i=in* Con-ribu-ions an(or ini-ia-ies s)an oer .u,-i),e =ears -e -o-a,
+on-ribu-ion a.oun- .us- be iie b= -e nu.ber o =ears an -e aera*e )er =ear is-en -o be u-i,ise or -e annua, +on-ribu-ion!
4!2!2 No )or-ion o -e a,ue o an= <ua,i=in* Con-ribu-ions -a- is )a=ab,e -o -e benei+iar=
a-er -e ,as- a= o -e "easure.en- #erio +an or. )ar- o an= +a,+u,a-ion uner -iss-a-e.en-
))%SOC.O ECO:OM.C 'E>ELOPME:3 CO:3R.B3.O:S
5!1 $o+ioE+ono.i+ Dee,o).en- Con-ribu-ions +onsis- o .one-ar= or non.one-ar=+on-ribu-ions a+-ua,,= ini-ia-e an i.),e.en-e in aour o benei+ia-es b= a "easure
En-i-= 7i- -e s)e+ii+ obe+-ie o a+i,i-a-in* in+o.e *enera-in* a+-ii-ies or -ar*e-e
benei+iaries!
5!2 Te u,, a,ue o $o+ioE+ono.i+ Dee,o).en- Con-ribu-ion .ae -o benei+iaries is
re+o*nisab,e i a- ,eas- 5 o -e a,ue ire+-,= benei-s ,a+8 #eo),e!
5!2!1 I ,ess -an 5 o -e u,, a,ue o $o+ioE+ono.i+ Dee,o).en- Con-ribu-ions ire+-,=
benei-s ,a+8 #eo),e -e a,ue o -e +on-ribu-ion .ae .u,-i),ie b= -e )er+en-a*e -a-
benei-s ,a+8 #eo),e is re+o*nisab,e!
5!3 Te o,,o7in* is a none'aus-ie ,is- o $o+ioE+ono.i+ Dee,o).en- Con-ribu-ions:
00 6rant contributions4
003 6uarantees 6iven or security provided for beneficiaries4
00 direct costs incurred by a Measured Entity in assistin6 beneficiaries4
001 overhead costs of a Measured Entity directly attributable to ocio7Economic Development $ontributions4
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00 developmental capital advanced to beneficiary communities4
002 preferential terms 6rants by a Measured Entity for its supply of 6oodsor services to beneficiary communities4
00> contributions made by the Measured Entity to third parties to performsocio7economic development on the Measured Entity<s behalf4
5!3!!1 or -e aoian+e o oub- su+ +on-ribu-ions are re*are as ain* been ini-ia-e an
i.),e.en-e on+e -e= a -o -e -ir )ar-=/
00? provision of trainin6 or mentorin6 to beneficiary communities /hich/ill assist them to increase their financial capacity4
00?0 such contributions are measurable by 5uantifyin6 the cost of time (e=cludin6
travel or commutin6 time) spent by staff or mana6ement of the Measured Entity
in carryin6 out such initiatives4
00?03 a clear ;ustification must support any claim for time costs incurred,
commensurate /ith the seniority and e=pertise of the trainer or mentor)0
00+ the maintenance by the Measured Entity of a socio7economicdevelopment unit /hich focuses only on support of beneficiaries andbeneficiary communities4
5!3!9!1 on,= -a- )or-ion o sa,aries an 7a*es a--ribu-ab,e -o -i.e s)en- b= -e s-a in an -e
o-er e')enses re,a-e -o )ro.o-in* an i.),e.en-in* so+ioe+ono.i+ ee,o).en-+ons-i-u-e +on-ribu-ions!
)<%CO:SMER E'CA3.O: CO:3R.B3.O:S
)<%1 'efinition& $onsumer Education is the process of transferrin6 .no/led6e and s.ills to
consumers, future consumers and potential consumers for individual /ell7bein6 and the
public 6ood0 The intended outcome of the process is the development of consumer<s.no/led6e and understandin6 of the financial sector and its products and services0
$onsumer education /ill include pro6rammes that are aimed at empo/erin6 consumers
/ith .no/led6e to enable them to ma.e more informed decisions about their finances and
lifestyles
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203 3ar(et !ar6et& The tar6et mar.et for $onsumer Education is the Tar6etMar.et as defined for #ccess products0
1 Standards
1%1%<" $onsumer Education standards are as published in the relevantuidance "ote issued by the !inancial ector $harter $ouncil0
1%1%<# $onsumer Education contributions consist of monetary or non7monetary contributions actually initiated and implemented in favour of beneficiates by a Measured Entity /ith the specific ob;ective meetin6the definition of $onsumer Education0
200$onsumer Education contributions are only reco6nisable if they comply /ith
$onsumer Education tandards0
)/%MEASREME:3 O$ SOC.O0ECO:OM.C 'E>ELOPME:3 A:' CO:SMERE'CA3.O: CO:3R.B3.O:S
<ua,i=in* $o+ioE+ono.i+ an Consu.er Eu+a-ion Con-ribu-ions are .easurab,e usin* -e
or.u,a in Anne'e 500 ?@!
)2%3E BE:E$.3 $AC3OR MA3R.@ APPL.CABLE 3O SOC.O0ECO:OM.C'E>ELOPME:3 CO:3R.B3.O:S
Te "inis-er .a= ro. -i.e -o -i.e b= no-i+e in -e *aPe--e reise or subs-i-u-e -e enei-
Fa+-or "a-ri'! An= +an*es 7i,, on,= be a)),i+ab,e -o +o.),ian+e re)or-s )re)are or "easure En-i-ies or "easure.en- #erios -a- +o..en+es a-er -e *aPe--in* o -e
aus-.en-!
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)4%Anne*e <77 +A, D Benefit $actor Matri*
;*aiin6 C#n"$i+*"i#n ",! C#n"$i+*"i#n A#*n" B!n!i" Fac"#$
G$an" an% R!a"!% C#n"$i+*"i#n&G$an" C#n"$i+*"i#n F* G$an" A#*n" 100
Dire+- Cos- in+urre in su))or-in*so+ioe+ono.i+ ee,o).en-
se+-or s)e+ii+ ini-ia-ies or
<ua,i=in* $o+ioE+ono.i+Con-ribu-ions
Heriiab,e Cos- ?in+,uin* bo- .one-ar= an non
.one-ar=@
100
Dis+oun-s in ai-ion -o nor.a,
business )ra+-i+es su))or-in*
so+ioe+ono.i+ ee,o).en-se+-or s)e+ii+ ini-ia-ies or
<ua,i=in* $o+ioE+ono.i+Con-ribu-ions
Dis+oun- A.oun- ?in ai-ion
-o nor.a, business is+oun-@
100
Oerea Cos-s in+urre in
su))or-in* so+ioe+ono.i+
ee,o).en- se+-or s)e+ii+
ini-ia-ies or <ua,i=in* $o+ioE+ono.i+ Con-ribu-ions
Heriiab,e Cos- ?in+,uin*
bo- .one-ar= an non
.one-ar=@
;0
C#n"$i+*"i#n& a%! in "1! #$ # 1*an $!&#*$c! ca,aci"#roessiona, seri+es renere a-
no +os- su))or-in* so+ioe+ono.i+
ee,o).en- se+-or s)e+ii+ini-ia-ies or <ua,i=in* $o+io
E+ono.i+ Con-ribu-ions
Co..er+ia, our,= ra-e o
)roessiona,
;0
#roessiona, seri+es renere a- ais+oun- su))or-in* so+io
e+ono.i+ ee,o).en- se+-or
s)e+ii+ ini-ia-ies or <ua,i=in*
$o+ioE+ono.i+ Con-ribu-ions
Ha,ue o is+oun- base on+o..er+ia, our,= ra-e
)roessiona,
;0
Ti.e o e.),o=ees o "easureEn-i-= )rou+-ie,= e),o=e in
assis-in* benei+iaries an
su))or-in* so+ioe+ono.i+ee,o).en- se+-or s)e+ii+
ini-ia-ies or <ua,i=in* $o+io
"on-,= sa,ar= iie b=160
;0
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E+ono.i+ Con-ribu-ions
)5%A::E@E <77 +B,
A. ;*aiin6 C#n"$i+*"i#n& a$! !a&*$a+! #n "1! ##3in6 +a&i&.
ere
A is -e s+ore a+iee in res)e+- o -e $o+ioE+ono.i+ Dee,o).en- s+ore+ar
B is -e a,ue o a,, <ua,i=in* $o+ioE+ono.i+ or Consu.er Eu+a-ions Con-ribu-ions o
-e "easure En-i-= -a- ae be+o.e )a=ab,e urin* -e "easure.en- #erio
C is -e +o.),ian+e Tar*e- in res)e+- o -e <ua,i=in* $o+ioE+ono.i+ Dee,o).en- o
Consu.er Eu+a-ion Con-ribu-ions as s)e+iie in -e s+ore+ar or s-a-e.en- 500 ?see
)ara*ra) 2!1 -o 2!3@
D is -e ei*-in* )oin-s a,,o+a-e -o -e ini+a-or uner -e $o+io E+ono.i+
Dee,o).en- an Consu.er Eu+a-ion s+ore+ar in s-a-e.en- 500
113
A =B
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REVISED FINANCIAL SECTOR CODE SERIES FS
STATEMENT FS.
THE MEASUREMENT OF THE EMPOWERMENT FINANCING ELEMENT
I&&*!% *n%!$ &!c"i#n / (0) # "1! B$#a%-Ba&!% Bac2 Ec#n#ic E,#3!$!n" A!n%!n"
Ac" # 405
A$$an6!!n" # "1i& &"a"!!n"
Pa$a S*+7!c" Pa6!
1! OQECTIHE$ OF TI$ $TATE"ENT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!104
2! TE $CORECARD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!104
3! BE& "EA$%RE"ENT #RINCI#LE$!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!105
4! E"#OER"ENT FINANCING DEFINITION$ $TANDARD$ AND TARGET!!!!!!!!!!!10
5! $%##LIER DEHELO#"ENT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1196! ENTER#RI$E DEHELO#"ENT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!121
! "EA$%RE"ENT OF ENTER#RI$E DEHELO#"ENT AND $%##LIER
DEHELO#"ENT CONTRI%TION$!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!123
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1 OBEC3.>ES O$ 3.S S3A3EME:3
The ob;ectives of this statement are to specify:
0The Empo/erment !inancin6 corecards
03The Enterprise Development (ED) scorecard4
0The .ey measurement principles for calculatin6 ualifyin6 Empo/erment
!inancin6 and Enterprise Development $ontributions4 and
01The formulae for calculatin6 the individual criteria specified in the
scorecards
<7%3E SCORECAR'
The Empo/erment !inancin6 corecard
M!a&*$!!n" C$i"!$iaW!i61"in6
P#in"&
Ban2&
Ta$6!"
W!i61"in6
P#in"&
L#n6-
"!$
In&*$!$&
Ta$6!"
2!1 Ta$6!"!% In<!&"!n"& 15 R4; bn 15 R2 bn
Transor.a-iona, Inras-ru+-ure
,a+8 $"E Finan+in*,a+8 A*ri+u,-ura, Finan+in*
Aorab,e ousin*
To-a, 12 12
2!2 ,a+8 Inus-ria,is- Finan+in* 3 3
E,#3!$!n" Financin6 T#"a 09 09
2!3
Annua, a,ue o a,, S*,,i!$
D!<!#,!n" Con-ribu-ions .ae b= -e"easure En-i-=
1!; o
N#AT
1!; o
N#AT
2!4
Annua, a,ue o a,, En"!$,$i&!
D!<!#,!n" Con-ribu-ions .ae b= -e
"easure En-i-=
30!2 o
N#AT3
0!2 o
N#AT
T#"a 49 49
4>9 B#n*& P#in"&
2!5!1
Graua-ion o one or .ore En-er)rise
Dee,o).en- benei+iaries -o *raua-e -o
-e $u)),ier Dee,o).en- ,ee,!
1 1
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2!5!2
For +rea-in* one or .ore obs ire+-,= as a
resu,- o $u)),ier Dee,o).en- an
En-er)rise Dee,o).en- ini-ia-ies b= -e"easure En-i-=!
1 1
2!5!3 Dee,o).en- o b,a+8 s-o+8bro8ers an
in-er.eiaries
0 30!5
N#AT
T#"a B#n*& P#in"& 2 5
" KE MEASREME:3 PR.:C.PLES
0Bith respect to the local ban.s, the tar6et /ill be measured as total
balance sheet e=posure for ne/ loans /ritten from 9anuary 3'3 to
December 3'> and is in addition to the amounts held on their balancesheet as at December 3'0 !or scorin6 purposes, it shall be deemed
that local ban.s held R' as at 9anuary 3'30
1 To avoid any doubt, the tar6et for the ban.in6 sector is based on anincrement of R?'bn additional Empo/erment !inancin6 bet/een 9anuary 3'3 and December 3'>0 %ocal ban.s /ill be responsiblefor R>?01bn of the increment and I-# members /ill be responsible for R02bn of the increment0
03 Illustrative E=ample (local ban.s)
-an. # has achieved R'bn of balance sheet e=posure for Tar6eted
Investments as at December 3'0 -an. #<s portion of the ne/ tar6et is
R1'bn additional Tar6eted Investments e=posure from 9anuary 3'3 to
December 3'>0 Therefore, its reportin6 tar6et shall be R>'bn in total0
!rom 9anuary 3'3 to December 3' it has /ritten ne/ 5ualifyin6 loans to
the value of Rbn and the balance sheet e=posure relatin6 to this Rbn as at
December 3' is Rbn0
Bith respect to calculatin6 its score as at December 3', -an. # shall
ta.e Rbn, bein6 its R'bn historic performance plus its Rbn current
performance divided by its tar6et of R>'bn0 The 5uotient multiplied by the total
points available shall be the points that -an. # may claim as at December
3'0
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Te or.u,a is as o,,o7s:
A ?(C@ ' D
ere:
A is -e )oin-s re+o*nise
B is -e su. o -e is-ori+ )eror.an+e an -e +urren- )eror.an+e
C is -e -ar*e- an
D is -e -o-a, )oin-s aai,ab,e
A S?R30bn K R3bn@ ( R0bn ' 12
A 5!66 )oin-s
0 Illustrative E=ample (I-# members)
-an. # has achieved R'm of balance sheet e=posure for Tar6eted
Investments as at December 3'0 -an. #<s portion of the ne/ tar6et is
R'm additional Tar6eted Investments e=posure from 9anuary 3'3 till
December 3'>0 Therefore, its tar6et shall be R2'bn actual balance sheet
e=posure as at December 3'>0
#s at December 3' -an. # has a total of R3m 5ualifyin6 e=posure on
its balance sheet0
Bith respect to calculatin6 its score as at December 3', -an. # shall
ta.e its actual R3m 5ualifyin6 e=posure divided by its tar6et of R2'm0 The
5uotient multiplied by the total points available shall be the points that -an. #
may claim as at December 3'0
Te or.u,a is as o,,o7s:
A ?(C@ ' D
ere:
A is -e )oin-s re+o*nise
B is -e a+-ua, ba,an+e see- e')osure a- .easure.en- a-e
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C is -e -ar*e- an
D is -e -o-a, )oin-s aai,ab,e
# P R3mAR2'bn = 3
A 10!4 )oin-s
01 Bith respect to the lon6 term insurance sector the tar6et shall bemeasured as total balance sheet e=posure at the measurement dateand includes all current balances held0
010 To avoid any doubt, the tar6et for lon6 term insurers is based on anincrement of R>bn additional Empo/erment !inancin6 bet/een 9anuary 3'3 and December 3'>0
0 Illustrative E=ample (%on6 Term Insurers):
Insurer # has achieved Rbn of balance sheet e=posure for Tar6eted
Investments as at December 3'0 #<s portion of the R3>bn tar6et is Rbn0
#s at December 3', # has a total of R03bn 5ualifyin6 e=posure on its
balance sheet, comprised of its Rbn prior balance and R'03bn ne/ loans0
Bith respect to calculatin6 its score as at December 3', # /ill ta.e its
actual R03bn 5ualifyin6 e=posure divided by its tar6et of Rbn0 The 5uotient
multiplied by the total points available shall be the points that # may claim as
at December 3'0
Te or.u,a is as o,,o7s:
A ?(C@ ' D
ere:
A is -e )oin-s re+o*nise
B is -e a+-ua, ba,an+e see- e')osure a- .easure.en- a-e
C is -e -ar*e- an
D is -e -o-a, )oin-s aai,ab,e
A R1!2bn(R3bn ' 12
11;
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A 4!; )oin-s
1% EMPOERME:3 $.:A:C.:8 'E$.:.3.O:SF S3A:'AR'S A:' 3AR8E3
E.)o7er.en- Finan+in* +o.)rises Tar*e-e Ines-.en-s an ,a+8 Inus-ria,is- Finan+in*
<7%1Tar6eted Investments (TI)
1%1%<) 'efinition& Tar6eted Investments means:
1%1%<)%1 Debt financin6 of, or other forms of credit e=tension to, or e5uity investments in outh #frican pro;ects, in areas /here6aps or bac.lo6s in economic development and ;ob creation
have not been ade5uately addressed by financial institutions0
1%1%<< It specifically means financin6 of, or investment in:
1%1%<<%1 Transformational Infrastructure pro;ects that supporteconomic development in underdeveloped areas and contributeto/ards e5uitable access to economic resources0 uchinfrastructure pro;ects could be in the follo/in6 sectors:i0 Transport4
ii0 Telecommunications4
iii0 Bater, /aste /ater and solid /aste4
iv0 Ener6y4
v0 ocial infrastructure such as health, education and correctional servicesfacilities4 and
vi0 Municipal infrastructure and services0
1%1%<<%" #6ricultural Development involvin6 inte6rated support for blac. farmers throu6h enablin6 access to and sustainable useof resources0
1%1%<<%# #ffordable ousin6 for households /ith a stable income,the amount of /hich /ill be determined annually by the
!inancial ector $ouncil0
1%1%<<%) -lac. MEs0
1%1%<<%< -lac. Industrialist !inancin6:
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1003 Delivery /ill be a6ainst a combined tar6et /ith fun6ibility over thevarious sub7components as per the individual or6anisation<s businessmodel0 hould an or6anisation not be able to deliver on any of thesesub7cate6ories, delivery of the value of Tar6eted Investments /ill haveto be done under the Enterprise Development element of this $odeand the points of that element /ill then be ad;usted accordin6ly0
1%1%</ Targets: The overall -an.s tar6et for tar6eted investments /ill beR1? billion ne/ balances and for %on6 K term Insurers the tar6et /illbe R3> billion0
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<7%"3ransfor!ational .nfrastructure +3.,
1%1%<2 Measurement principlesTI pro;ects /ill be measured, based on the Municipal inde= or as per the
specific pro;ect ratin6 allocated, based on the tar6et mar.et, submittedfor evaluation0
1.1.58 3ar(et !ar6et and ProjectsTI /ill be any infrastructure that /ill promote the social and e5uitable economic
development of a specific location, community, re6ion or district0 This /ill
include but is not limited to:
1%1%<4%1 Education /hich includes schools, learnin6 centres, hi6her
education, etc01%1%<4%" Road and rail infrastructure /hich /ill include ne/ access roads,
up6radin6 of e=istin6 roads, etc0
1%1%<4%# $ommunity infrastructure such as /ater, electricity, se/era6e,draina6e, purification and treatment, amon6st others, e=cept thosethat are specific to #ffordable ousin6 pro;ects in /hich case they /illbe included under that sub7element0
1%1%<4%) afety and security, /hich includes police stations, prisons, etc0
1%1%<4%< #ll telecommunications infrastructure /hether that be land,cellular, or data0
00?00 ealth, /hich includes hospitals and clinics etc0
00?003 Municipal infrastructure and services includin6 6overnment buildin6s0
00?00 Industrial Development Qone type infrastructure includin6 lo6istics
hubs0
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1%1%<5 Cate(ories of 3. fundin( recipients and9or participatin( in 3.i!ple!entation&
1%1%<5%1 Municipalities and 6overnment departments0
1%1%<5%" *arastatals and public entities0
1%1%<5%# !inancial intermediaries such as I"$#, D-#, T$T#, and the #frican Infrastructure Investment !und0
1%1%<5%) *rivate companies and participants in *ublic7*rivate*artnerships (***)0
1.1.60 Products
1.1.60.1 #ll forms of financin6 and A or investment0 Instruments used to
finance TI vary in nature and term throu6hout the pro;ect cycle, but/ill, inter alia, include:
1%1%/7%" $onstruction period loans0
1%1%/7%# enior or subordinated medium7 and lon67term loans or bonds
1%1%/7%) #sset leases0
1%1%/7%< uarantees of the above and other instruments0
1%1%/7%/ Bor.in6 capital such as 6eneral ban.in6 facilities or revolvin6credit facilities0
1%1%/7%2 *erformance 6uarantees or bonds0
1%1%/7%4 Me88anine finance, /hich may include participatin6 instrumentssuch as participatin6 debentures, convertible loans, etc0
1%1%/7%5 E5uity finance, /hich may ta.e the form of ordinary shares andshareholder loans0
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1%1%/1 Measure!ent& The basis of measurin6 the 5ualifyin6 fundin6 to TI/ill be the stoc. measure0 This is effectively a measure of the amount(or Cstoc.<) of financin6 sho/n on the balance sheet of a measuredentity at the measurement date0 # /ei6hted avera6e of the monthlybalances over the 3 months prior to the measurement date is to beused to smooth out seasonal and other distortions0
1%1%/1%1 Measurement and calculation of TI pro;ects /ill be throu6h theuse of a Municipal inde=0 *ro;ects funded but not measured usin6 theMunicipal inde= approach /ill be considered to be Frin67fencedGpro;ects and re5uire the provision of detailed information ontransformation impact focusin6 on economic beneficiaries in order to
;ustify ho/ the scorin6 /ill be done if hi6her than the 6eneralMunicipal inde= method0 To avoid confusion F the rin6 fencedG pro;ectsmeans a fundin6 method /hich provides for a ratin6 of up to ''H/here a municipality conducts a fund7raisin6 e=clusively for transformational infrastructure in an underdeveloped area of themunicipality as defined by the !$ $ouncil0 uch fundin6 may beraised by /ay of an earmar.ed bond or facility or by /ay of a rin67fenced pro;ect financin60
00200 The current matri= /ill be revie/ed and ad;usted accordin6ly0 This /ill
include some blan.et pro;ect multipliers included for some of the critical
infrastructural developments such as access roads, rail/ay up6rades, lo/7cost
telecommunications includin6 Tel.om, electricity 6eneration and supply, /ater
supply pipelines, reservoirs and dams, etc0
002003 #n ad;udication committee consistin6 of e=perts to be established to
ad;udicate mar6inal pro;ects or ne/ types of pro;ect financin60
00200 hould fundin6 be syndicated, each member /ill score on their individual
contribution sub;ect to any multiplier applicable on the pro;ect as a /hole0
1%1%/" 3ar(ets& Due to the fun6ibility of delivery over the sub cate6ories bythe deliverin6 or6anisation, tar6ets /ill be set for Tar6eted Investments(TI) only and not sub cate6ories0 Therefore, transformationalinfrastructure as a sub7cate6ory of TI /ill not have a specific tar6et0
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<7%#Affordable housin(
1%1%/# ome lendin6 standards for 5ualifyin6 loans are defined as set outbelo/ and see. to define a voluntary:
i! Aorab,e ousin* -ar*e- .ar8e-/
ii! #rou+- eini-ion *uie,ines!
1%1%/) 3ypes of Lendin(& #ffordable housin6 constitutes both mort6a6eand non7mort6a6e bac.ed lendin6 for housin6 purposes and includesthe follo/in6 product cate6ories, /hich may e=pand in the future:
1%1%/)%1 Mort6a6es4
1%1%/)%" @nsecured personal loans4
1%1%/)%# *ersonal loans secured by a pension or provident fund4
1%1%/)%) Residential development loans4
1%1%/)%< Bholesale loans0
1%1%/< ualifyin6 %oans A Investment tandards%oans 5ualifyin6 for inclusion must conform to the follo/in6 standards: The
purpose of the loan should be for housin6 (as set out under *roduct $ate6ory
Definitions)4
1%1%/<%1 %oans should conform to the re5uirements of the "ational $redit
#ct41%1%/<%" %oans should be priced in line /ith re6ulated interest rate and fee
limits specific to the various loan types0
1%1%/<%# %oans are deemed to have been /ritten by a financial institution/hen a mort6a6e bond has been re6istered or in the case of non7mort6a6e loans /hen these loans are disbursed0
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1%1%// 3ar(et Mar6et
1%1%//%1 The tar6et mar.et is defined to be the appro=imate cost of bonded entry housin6 in outh #frica ad;usted annually by themidpoint of the $onsumer *rice Inde= ($*I) and the -uildin6 $ostInde= (-$I)0 The avera6e annual $*I fi6ure is obtained frompublished reports from # tatistics and that of the -$I fi6ure fromthe -ureau for Economic Research (tellenbosch @niversity)0
1%1%//%" !or 3', the #ffordable ousin6 mar.et as calculated by the-an.in6 #ssociation, comprises households earnin6 up to R,>?per month0 (ee "ote 1 under #ffordable ousin6 for further details)0
1%1%/2 ousehold inco!e1%1%/2%1 Monthly household income is the primary criteria used to
determine /hether the lendin6 activity may count to/ards theaffordable housin6 tar6ets0
1%1%/2%" Income as defined in terms of the "ational $redit #ct, 1 of 3''7 Fousehold income means the combined 6ross income of the
#pplicantAs, /hich may include the income of any ma;or person /hoshares their financial meansAobli6ations /ith the #pplicantAs0
1%1%/2%# ross income includes income or any ri6ht to receive income,but e=cludes monies received that the person receives, has a ri6ht toreceive or holds in trust for another person0G
1%1%/2%) The 6ross monthly applicantAs income is determined /hen theloan is approved0 !or tar6et mar.et upper income 5ualificationpurposes the date of approval of loans, both mort6a6es and non7mort6a6es, is based on the 5uantum of the applicantAs income as attime of approval of a loan0
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1002 Business ;ritten ;ithin the tar(et !ar6et
The follo/in6 table contains the various tar6et mar.ets0
126
M#$"6a6! #an& N#n-#$"6a6! #an& R!&i%!n"ia %!<!#,!n"
#an inanc!
W1#!&a! #an
inanc!!=*i"
# r o 0 u + -
0 e s + r i ) - i o n Resien-ia,
)ro)er-= ,oans -oen users
+o,,a-era,ise b=re*is-erin* a
#ersona, ,oans equa, -o
or *rea-er -an R1 0007i- a -er. o .ore
-an 12 .on-s!
$or- or ,on* -er. inan+e
-o ee,o)ers or -e+rea-ion o ousin* s-o+8!
$or- or ,on*-er. inan+e
-o +or)ora-es orin-er.eiaries 7o on,en
-o iniiua,s or o-eren-i-ies or ousin*
In+,ues Firs- an ur-er.or-*a*e(
ine.ni-=
bons!C,ien- rien
s7i-+es!
Fur-er ,oans
7i-ou-re*is-ra-ion!
Fu,,= or )ar-ia,,=se+ure b= )ension(
)roien- un!
%nse+ure ,oans useor ousin* )ur)oses!
Fur-er aan+es!
ousin* s-o+8 or an= or.o -enure e!*! o7nersi)
ins-a,.en- sa,e ren-a,!
Ne7 ee,o).en-s+onersions or u)*rain* o
e'is-in* s-o+8!
A,, ,oans as )er .or-*a*e,oans non.or-*a*e ,oans
an resien-ia, ee,o).en-
,oan inan+e!
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100> Product cate(ory definitions
M#$"6a6! #an& N#n-#$"6a6! #an& R!&i%!n"ia %!<!#,!n"
#an inanc!
W1#!&a! #an
inanc!!=*i"
#rou+-
es+ri)-ion
Resien-ia,
)ro)er-= ,oans
-o en users+o,,a-era,ise b=
re*is-erin* a.or-*a*e(
ine.ni-= bon
oer -e )ro)er-=!
#ersona, ,oans equa,
-o or *rea-er -an R1
000 7i- a -er. o.ore -an 12
.on-s!
$or- or ,on* -er. inan+e
-o ee,o)ers or -e
+rea-ion o ousin* s-o+8!
$or- or ,on* -er. inan+e -o
+or)ora-es or in-er.eiaries
7o on,en -o iniiua,sor o-er en-i-ies or ousin*
)ur)oses!An equi-= s-a8e b= a
inan+ia, ins-i-u-ion in a
,e*a, en-i-= ,i.i-e -o -ee'-en- -a- -e ,e*a, en-i-=
,ens -o -e -ar*e- .ar8e- as
)er -e res)e+-ie )rou+-eini-ions!
In+,ues Firs- an ur-er .or-*a*e(
ine.ni-= bons!C,ien- rien
s7i-+es!
Fur-er ,oans7i-ou-
re*is-ra-ion!
Fu,,= or )ar-ia,,=se+ure b= )ension(
)roien- un!%nse+ure ,oansuse or ousin*
)ur)oses!
Fur-er aan+es!
ousin* s-o+8 or an= or.o -enure e!*! o7nersi)
ins-a,.en- sa,e ren-a,! Ne7 ee,o).en-s+onersions or u)*rain* o
e'is-in* s-o+8!
A,, ,oans as )er .or-*a*e,oans non.or-*a*e ,oans
an resien-ia, ee,o).en-,oan inan+e!
@>5> N#"! 0
ousehold income is a forei6n term to ban.s as it is the applicant<s income
that determines affordability and the le6al relationship bet/een ban. and
client0 "one of the ban.s record household income on their application formsor systems0 There is also a stron6 vie/ that self7declared household income is
not reliable and /ould be an impractical and costly e=ercise to validate0 In an
analysis underta.en by the ban.s in 3''1, it /as found that there is a stron6
correlation bet/een applicant income (comprisin6 both individual and ;oint
applications) and household income0 It /as therefore felt that applicant
income, /hether sin6le or ;oint, is a stron6 pro=y for household income and a
reliable and transparent measure0
@>5>/ N#"! 4
!or unsecured and 6uaranteed personal loans, the borro/er<s income and notthe ;oint income /ill be used for 5ualification purposes as these loans are
6ranted to individuals based only on their o/n income and affordability, not
;oint income0 9oint income, on the other hand, is 6enerally reco6nised for
mort6a6e loan lendin6 purposes0
@>5>0 N#"! 5
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Residential Development plays the role of an Cenabler< as it increases the
supply of housin6 stoc.0 %ender fundin6 is of a short7term nature0
@>5>00 N#"! @
The avera6e cost of a primary mar.et bonded entry home /as deemed to be
appro=imately R 3' ''' based on member mar.et e=perience, coupled /ithresearch underta.en by The -an.in6 #ssociation /ith both developers and an
e=ternal research company (!inmar. Trust)0 In addition, this upper income
definition is ali6ned to that of the draft FInclusionary ousin6G draft policy
document as /as produced by the department of uman ettlements0 #n
upper income limit of R,13 /as therefore deemed to be appropriate by The
-an.in6 #ssociation in 3''+0
!or 3', the upper income limit is calculated as follo/s:
$*I: avera6e $*I for 3'', 10H
-$I: avera6e -$I for 3'', 703H
The midpoint for $*I and -$I for 3'' /as 0H
The upper income limit for 3' is R,>? (R,1+? (R,1+? =
0H)
oin6 for/ard, on an annualised basis, The -an.in6 #ssociation /ill continue
to provide members /ith /ritten confirmation of the tar6et mar.et definition for
#ffordable ousin6 as defined in "ote 1 above0
)%#%1" Additional :otes relatin( to Affordable ousin(
There is 6eneral ac.no/led6ement that there is a lac. of Fstoc.G of housin6units available to finance for the Fap Mar.etG se6ment (R',''' and less
monthly income) of the tar6et mar.et due to a multitude of challen6es in our
country0 To this end Trade associations shall, to6ether /ith overnment,
$ommunity and %abour representatives, establish a /or.in6 committee post
6a8ettin6 of this code to develop a coherent strate6yAstrate6ies that /ill see.
to address this problem0 olutions may include *ublic *rivate *artnerships
bet/een financiers, developers, 6overnment and community7based
or6anisations and could include co7operative housin6 schemes andAor
development rebates, etc0
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<7%)Blac6 SME financin(
1%1%/4 'efinition& -lac. ME financin6 means: Debt financin6 of, or other forms of credit e=tension to outh #frican 5ualifyin6 or6anisations toaddress the 6aps or bac.lo6s in economic development and ;ob
creation0 It specifically means financin6 of or investment in -lac.7o/ned MEs0
1%1%/5 -lac. ME means: E=empt Micro Enterprises or ualifyin6 mallEnterprises or ualifyin6 mall !inancial Institutions, havin6 -lac.o/nership of 'H or more0
1%1%27 Measure!ent principles
1%1%27%1 *reamble: The basis of measurin6 the 5ualifyin6 fundin6 for
-lac. ME<s /ill be the stoc. measure0 This is effectively a measureof the amount (or Cstoc.<) of financin6 sho/n on the balance sheet of an affected entity at the measurement date0 # /ei6hted avera6e of the monthly balances over the 3 months prior to the measurementdate is to be used to smooth out seasonal and other distortions0
1%1%27%" Tar6et mar.et: #ny EME or E or !I 'H blac. o/nershipor more0
1%1%21 Products includes, but are not limited to:
1%1%21%1 Term loans of any len6th, includin6 asset7based finance (includesleases and rentals) in the name of the business
1%1%21%" &verdraft facilities (measured on the usa6e)
1%1%21%# E5uity investments by the or6anisation
1%1%21%) *roperty finance, includin6 commercial mort6a6es
1%1%21%< Invoice discountin6 includin6 commercial debtor finance
1%1%21%/ uarantees
1%1%21%2 %evera6e finance
1%1%21%4 Indemnity bac.ed loans such as Nhula, Enablis, @#ID, @S!und, etc0
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1%1%2" Measure!ent
1%1%2"%1 # -lac. ME must meet the le6al definition of a ObusinessO andtherefore must be a company ((*ty) %td) close corporation (cc)partnership, sole proprietorship, or co7operative0 Bill be a Ostoc.O
tar6et, i0e0 it /ill be measured as incremental 6ro/th in balance sheete=posure0 #n avera6e e=posure method to be used based on monthlybalances as submitted to the outh #frican Reserve -an. (#R-)0
1%1%2"%" &verdraft facilities: overdrafts to be measured based onutilisation, rather than limit authorised0 The metric for overdraftfinancin6 /ill be the avera6e overdraft utilised over the reportin6period0
1%1%2"%# E5uity investments: /ill be valued at cost0
1%1%2"%) *roperty finance: /ill E$%@DE personal property finance0$ommercial property finance /ill be measured only if it meets thefollo/in6 criteria:
1%1%2"%< !inance is re6istered in the name of the business or in any other le6al entity but the shareholder(s) /ill need to prove conformance0
1%1%2"%/ !inancin6 is ''H reserved on the ban.Js A entity<s balancesheet0
1%1%2"%2 Invoice discountin6 /ill be sub;ect to the same rules as overdraftfacilities0 Therefore, discountin6 as at the end of the measurement
period /ill be the avera6e monthly utilisation of the invoicediscountin6 facility over the measurement period0
1%1%2"%4 In all instances scorin6 /ill be based on actual e=posures, notauthorised limits0
1%1%2"%5 In all instance finance obtained in a personal capacity not to becounted e=cept in the case of a sole proprietorship, obtained in apersonal capacity Otradin6 asO0
1%1%2"%17 raduation rules: Turnover rule: for -lac. MEs /ho move
outside the upper end turnover definition, a ma=imum e=posure limitbe set beyond /hich any finance provided /ill not be scored0 Thema=imum e=posure limit /ill be Rm sub;ect to any ad;ustmentallo/ed0
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<7%<Blac6 a(riculture financin(
1%1%2# 'efinition
1%1%2#%1 -lac. a6riculture financin6 is the financin6 of #6ricultural
Development involvin6 inte6rated support for -lac. farmers, /hich is3H blac. o/ned or more and A or at least a %evel 1 -EE contributor,throu6h enablin6 access to and sustainable use of resources0
1%1%2#%" #6ricultural Development fundin6 relates to the fundin6 of farmin6 production re5uirements and the necessary infrastructure toenable farmers to deliver products to mar.et, but e=cludes industrialprocessin6 of a6ricultural products unless it can be defined as pre7production0 That means inputs to production are included as /ell asco7operatives as providers of both finance assistance and 6oods Aservices0
1%1%2) Measure!ent principles
1%1%2)%1 *reamble: The aim is to encoura6e financial institutions to desi6nand distribute products for e=istin6 and ne/ entrants into thea6ricultural sector0
1%1%2)%" Tar6et mar.et: #ny enterprise that comprises:
i0 -lac. farmers, includin6 blac. o/ned entities (E=empted Micro Enterprises
(EMEs) and ualifyin6 mall Enterprises (Es) /ith 3H or more of
blac. o/nership0 The definition includes lar6e entities (i0e0 entities /ith U
Rm turnover) if 3H blac. o/ned0
ii0 The level 1 -EE contribution can be retained4 but this /ill be in addition to
the 3H blac. o/nership, and /hich derives the ma;ority of its turnover
from:
a) *rimary a6ricultural production
b) *rovision of inputs and services to a6ricultural production enterprisesc) tora6e, distribution and A or tradin6 and allied activities related to
non7beneficiated a6ricultural products0
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1%1%2< Products Includes, but are not limited to:
00>00 &verdraft facilities
00>003 #6riculture *roduction %oans
00>00 Term loans
00>001 #sset finance
00>00 %ease a6reements
00>002 $ommodity finance
00>00> ilo certificate finance
00>00? Insurance products and services0
1%1%2/ Measure!ent
1%1%2/%1 If 3H blac. o/ned or more K claim ''H fundin6
1%1%2/%" This /ill be as per the current !$ /ith a6reement that it /ouldinclude the farmer and one up level of activity Ke060, a dairy farmer /ith a cold stora6e facility that he ma.es available to other farmers
1%1%2/%# The principle of Fsee throu6hG financin6 A credit to be upheld0
102-lac. Industrialist !inancin6 K The definitions, measurement principles
and products /ill be issued by the !inancial ector $harter $ouncil post
the 6a8ettin6 of the Revised !$0
4!3 Bac2 In&%*&"$iai&!% Financin6
4!3!1 Te eini-ions-ar*e-s .easure.en- )rin+i),es an )rou+-s 7i,, be issue b= -e
Finan+ia, $e+-or Car-er Coun+i, )os- -e *aPe--in* o -e Reise F$C!
90> SPPL.ER 'E>ELOPME:3 CONTRIBUTIONS
Te o,,o7in* is a none'aus-ie ,is- o <ua,i=in* En-er)rise Dee,o).en- an $u)),ier
Dee,o).en- Con-ribu-ions:
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0 investments in ualifyin6 -eneficiary Entities4
03 loans made to ualifyin6 -eneficiary Entities4
06uarantees 6iven or security provided on behalf of ualifyin6 -eneficiaryEntities4
01credit facilities made available to ualifyin6 -eneficiary Entities4
02direct costs incurred by a Measured Entity in assistin6 and hastenin6
development of ualifyin6 -eneficiary Entities4
0>overhead costs of the Measured Entity directly attributable to ualifyin6
Enterprise Development and upplier Development $ontributions4
0?preferential credit terms 6ranted by a Measured Entity to ualifyin6
-eneficiary Entities4
0+preferential terms 6ranted by a Measured Entity in respect of its supply of
6oods and services to ualifyin6 -eneficiary Entities4
0' contributions made to/ards the settlement of the cost of services
relatin6 to the operational or financial capacity andAor efficiency levels of
a ualifyin6 -eneficiary Entity includin6, /ithout limitation:
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1%1%22 professional and consultin6 services4
1%1%24 licensin6 andAor re6istration fees4
1%1%25 industry specific levies andAor other such fees4 and
1%1%47 IT services4
0 discounts 6iven to ualifyin6 -eneficiary Entities in relation to the
ac5uisition and maintenance costs associated /ith the 6rant to those
ualifyin6 -eneficiary Entities of franchise, licence, a6ency, distribution
or other similar business ri6hts4
03 the creation or development of capacity and e=pertise for ualifyin6
-eneficiary Entities needed to manufacture or produce 6oods or service
previously not manufactured, produced or provided in the Republic of
outh #frica as provided for in overnmentJs economic 6ro/th and local
supplier development policies and initiatives4
030 such contributions /ill be measured as the rand value of
monetary contributions made, as /ell as investments into, loans made toor 6uarantees 6iven to -eneficiary Entities4
0 facilitatin6 access to credit for ualifyin6 -eneficiary Entities /ithout
access to traditional credit facilities o/in6 to a lac. of credit history, hi6h7
ris. or lac. of collateral on the part of the ualifyin6 -eneficiary Entity4
01 provision by the Measured Entity, of preferential credit facilities to a
ualifyin6 -eneficiary Entity0 E=amples of such contributions include/ithout limitation:
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0 provisions of finance to ualifyin6 -eneficiary Entities at lo/er thancommercial rates of interest0 uch contributions /ill be measured asthe value of the differential bet/een the actual interest rate providedto the -eneficiary Entity and the applicable rate4
1%1%41 rela=ed security re5uirements or absence of security re5uirements for ulifyin6 -eneficiary Entities unable to provide security for loans0uch contributions shall be measured as bein6 H (three percent) of any positive differential bet/een the initial capital value of the loanand the value of security ta.en4 and
1%1%4" settlement of accounts /ith ualifyin6 -eneficiary Entities over ashorter period of time in relation to the Measured EntityJs normalpayment period, provided the shorter period is no lon6er than daysafter date of invoice0 *referential payment terms that e=tend beyond days /ill not 5ualify as ualifyin6 Enterprise Development andupplier Development $ontributions4
02 the provision of seed or development capital to ualifyin6 -eneficiary
Entities4
0> provision of trainin6 or mentorin6 by suitably 5ualified entities or
individuals to ualifyin6 -eneficiary Entities /hich /ill assist such
Entities to increase their operational or financial capacity4 and
0? provision of trainin6 or mentorin6 to ualifyin6 -eneficiary Entities by
the Measured Entity itself4
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1%1%4# such contributions are measurable by 5uantifyin6 the cost of time(e=cludin6 travel or commutin6 time) spent by staff or mana6ement of the Measured Entity in carryin6 out such initiatives4
1%1%4) a clear ;ustification, commensurate /ith the seniority and e=pertise of
the trainer or mentor, must support any claim for time costs occurred4
1%1%4< $ommon forms of such contribution include, /ithout limitation:
1%1%4<%1 *rofessional and consultin6 services4
1%1%4<%" IT services4 and
1%1%4<%# any other services /hich help to increase the entity<s financialand A or operational capacity and /hich have not also been accountedfor under $ode !'' .ills Development0
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0+ Trainin6 or mentorin6 provided as per 0> and 0? above may not be
double counted under the .ills Development scorecard once claimed as
ualifyin6 Enterprise and upplier Development $ontribution and vice
versa0
03' the maintenance by the Measured Entity of an Enterprise Development
and upplier Development unit /hich focuses e=clusively on support of
ualifyin6 -eneficiary Entities or candidate beneficiary entities0
03'0 only that portion of salaries and /a6es attributable to time spent bythe staff in, and the other e=penses that relates to, promotin6 or implementin6 ualifyin6 Enterprise and upplier Development
$ontributions, 5ualify for reco6nition0
03 payments made by the Measured Entity to suitably 5ualified and
e=perienced third parties to perform Enterprise Development and
upplier Development on the Measured EntityJs behalf0
030 for the avoidance of doubt such contributions are re6arded as havin6
been initiated and implemented once they become payable to the thirdparty4
94> E:3ERPR.SE 'E>ELOPME:3 CONTRIBUTIONS
Te o,,o7in* is a none'aus-ie ,is- o <ua,i=in* En-er)rise Dee,o).en- an $u)),ier
Dee,o).en- Con-ribu-ions:
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20credit facilities made available to ualifyin6 -eneficiary Entities4
2036rant contributions to ualifyin6 -eneficiary Entities4
20direct costs incurred by a Measured Entity in assistin6 and hastenin6development of ualifyin6 -eneficiary Entities4
201overhead costs of the Measured Entity directly attributable to ualifyin6
Enterprise Development and upplier Development $ontributions4
20preferential credit terms 6ranted by a Measured Entity to ualifyin6
-eneficiary Entities4
202preferential terms 6ranted by a Measured Entity in respect of its supply of
6oods and services to ualifyin6 -eneficiary Entities4
20>contributions made to/ards the settlement of the cost of services relatin6
to the operational or financial capacity andAor efficiency levels of a
ualifyin6 -eneficiary Entity includin6, /ithout limitation:
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1%1%4/ professional and consultin6 services4
1%1%42 licensin6 andAor re6istration fees4
1%1%44 industry specific levies andAor other such fees4 and
1%1%45 IT services4
20?discounts 6iven to ualifyin6 -eneficiary Entities in relation to the
ac5uisition and maintenance costs associated /ith the 6rant to those
ualifyin6 -eneficiary Entities of franchise, licence, a6ency, distribution
or other similar business ri6hts4
20+the creation or development of capacity and e=pertise for ualifyin6
-eneficiary Entities needed to manufacture or produce 6oods or service
previously not manufactured, produced or provided in the Republic of
outh #frica as provided for in overnmentJs economic 6ro/th and local
supplier development policies and initiatives4
20+0 such contributions /ill be measured as the rand value of monetary
contributions made, as /ell as investments into, loans made to or 6uarantees 6iven to -eneficiary Entities4
20' the creation or development of ne/ pro;ects promotin6 beneficiation by
the Measured Entity for the benefit of ualifyin6 -eneficiary Entities0
20 facilitatin6 access to credit for ualifyin6 -eneficiary Entities /ithout
access to traditional credit facilities o/in6 to a lac. of credit history, hi6h7
ris. or lac. of collateral on the part of the ualifyin6 -eneficiary Entity4
203 provision by the Measured Entity, of preferential credit facilities to a
ualifyin6 -eneficiary Entity0 E=amples of such contributions include
/ithout limitation:
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1%1%57 provisions of finance to ualifyin6 -eneficiary Entities at lo/er thancommercial rates of interest0 uch contributions /ill be measured asthe value of the differential bet/een the actual interest rate provided tothe -eneficiary Entity and the applicable rate4
1%1%51 rela=ed security re5uirements or absence of security re5uirements for ulifyin6 -eneficiary Entities unable to provide security for loans0uch contributions shall be measured as bein6 H (three percent) of any positive differential bet/een the initial capital value of the loanand the value of security ta.en4 and
1%1%5" settlement of accounts /ith ualifyin6 -eneficiary Entities over ashorter period of time in relation to the Measured EntityJs normalpayment period, provided the shorter period is no lon6er than daysafter date of invoice0 *referential payment terms that e=tend beyond days /ill not 5ualify as ualifyin6 Enterprise Development andupplier Development $ontributions4
20 the provision of seed or development capital to ualifyin6 -eneficiary
Entities4
201 provision of trainin6 or mentorin6 by suitably 5ualified entities or
individuals to ualifyin6 -eneficiary Entities /hich /ill assist such
Entities to increase their operational or financial capacity4 and
20 provision of trainin6 or mentorin6 to ualifyin6 -eneficiary Entities by
the Measured Entity itself4
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1%1%5# such contributions are measurable by 5uantifyin6 the cost of time(e=cludin6 travel or commutin6 time) spent by staff or mana6ement of the Measured Entity in carryin6 out such initiatives4
1%1%5) a clear ;ustification, commensurate /ith the seniority and e=pertise of the trainer or mentor, must support any claim for time costs occurred4
1%1%5< $ommon forms of such contribution include, /ithout limitation:
1%1%5<%1 *rofessional and consultin6 services4
1%1%5<%" IT services4 and
1%1%5<%# any other services /hich help to increase the entity<s financialand A or operational capacity and /hich have not also been accountedfor under $ode !'' .ills Development0
202 Trainin6 or mentorin6 provided as per +0> and +0? above may not bedouble counted under the .ills Development scorecard once claimed as
ualifyin6 Enterprise and upplier Development $ontribution and vice
versa0
20> the maintenance by the Measured Entity of an Enterprise Development
and upplier Development unit /hich focuses e=clusively on support of
ualifyin6 -eneficiary Entities or candidate beneficiary entities0
20>0 only that portion of salaries and /a6es attributable to time spent bythe staff in, and the other e=penses that relates to, promotin6 or implementin6 ualifyin6 Enterprise and upplier Development$ontributions, 5ualify for reco6nition0
20? payments made by the Measured Entity to suitably 5ualified and
e=perienced third parties to perform Enterprise Development and
upplier Development on the Measured EntityJs behalf0
20?0 for the avoidance of doubt such contributions are re6arded as havin6been initiated and implemented once they become payable to the thirdparty4
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<#%MEASREME:3 O$ E:3ERPR.SE 'E>ELOPME:3 A:' SPPL.ER'E>ELOPME:3 CO:3R.B3.O:S
>0-an.s and %ife offices) receives a score for Enterprise Development and
upplier Development in proportion to the e=tent that it meets the
compliance tar6et0
>03ualifyin6 $ontributions are measurable usin6 the formula O#O in #nne=e
!1''(-)
REVISED FINANCIAL SECTOR CODE SERIES FS8
STATEMENT FS8
THE GENERAL PRINCIPLES OF THE ACCESS TO FINANCIAL SERVICES ELEMENT
OF BROAD-BASED BEE
I&&*!% *n%!$ &!c"i#n / (0) # "1! B$#a%-Ba&!% Bac2 Ec#n#ic E,#3!$!n" A!n%!n"
Ac" # 405
1 3he criteria relatin( to e*e!ption fro! the Access Proisions&
0If the financial institution is a /holesaler, in the sense that it is not a
provider of first7order financial products and services, it /ill be e=empt
from the provisions of $ode !>'' unless it opts to be so bound0
03If the financial institution is a retailer of first7order financial products and
services but, on 6rounds presented to and accepted by the $harter
$ouncil, it /ould be inconsistent /ith its business model for it to e=tend
those products or services to lo/7income communities, it /ill be e=empt
from the provisions of $ode !>'' unless it opts to be so bound0
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REVISED FINANCIAL SECTOR CODE SERIES FS8
STATEMENT FS80
THE MEASUREMENT OF THE ACCESS TO FINANCIAL SERVICES ELEMENT OF
BROAD-BASED BEE AS IT RELATES TO MEMBERS OF THE BANKING
ASSOCIATION OF SOUTH AFRICA
I&&*!% *n%!$ &!c"i#n / (0) # "1! B$#a%-Ba&!% Bac2 Ec#n#ic E,#3!$!n" A!n%!n"Ac" # 405
In"$#%*c"i#n
The outh #frican members of the -an.in6 Industry submit and indicate their
/illin6ness to abide by the standards, definitions, and .ey measurements
principles as set out in this document as commitment to the delivery on
inclusive tar6ets (/here specified), to enhance, improve, and 6ro/ financial
access to that portion of the outh #frican economically active population /ho
/ere previously e=cluded for /hatever reason0
The tar6ets contained in this document are not aimed to divide the tar6et
mar.et but rather to e=pand the reach of financial services by all participants in
the industry, to that portion of the population not actively serviced by current
ban.in6 services, based on an economic viable model for all participatin6
or6anisations0
Arran(e!ent of this state!ent
Pa$a S*+7!c" Pa6!
1! Obe+-ies !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!126
2! Te $+ore+ar!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!12
3! Te eini-ions $-anars Tar*e- .ar8e-s an Be= "easure.en- #rin+i),es o A++ess!! !!12;
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1 OBEC3.>ES
The #ccess scorecard as it relates to members of the -an.in6 #ssociation of
outh #frica0
The definitions, standards, tar6et mar.ets and .ey measurement principles
of the sub7cate6ories of the #ccess element0
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<)%3E SCORECAR'
Acc!&& "# Financia S!$<ic!&
Acc!&&
M!"1#%
;*aiin6
Ma$2!" a$!a ;*aiin6 C$i"!$ia Ran6! Ta$6!"A<aia+!
,#in"&
2!1 G!#6$a,1ic Acc!&& (R!ac1) One or .ore o: 6
2!1!1Transa+-ion
)oin-
50 or
.ore o
ouseo,sa,, 7i-inL$" 15
ra7 +as or
5 8. ;5 1 )ur+ase ro. -eira++oun-s
2!1!2 $eri+e )oin-
rese- a #IN
10 8. 0 1.one= -ransers
*e- a s-a-e.en- or
ini-ia-e a++oun- queries
2!1!3 $a,es )oin-
re),a+e a +ar
15 8. 60 2
e)osi- +as in-o -eir
a++oun-s or
a+quire:
a -ransa+-ion a++oun- a
unera, )o,i+=
a sain*s a++oun- or
a ,oan!
2!1!4 E,e+-roni+A++ess
Iniiua,searnin*
,ess -an
R5000 )er .on-in+reasin*
b= C#I
)!a!
Te use o -e,e)ones
.obi,e )ones in-erne- ban8in* or an= o-er ne7
-a+no,o*= or: .one=-ransers a++oun- -o
a++oun- -ransers )re)ai )ur+ases ba,an+e
enquiries ?,is- no-
e'aus-ie@!
Na-iona,
19 0 a++oun-
o,ers 7i-in-e -ar*e-.ar8e-
2
2!2an8in*
Densii+a-ion
Iniiua,sin -e L$"
15 *rou)
na-iona,,=
A++ess -o +as 7i-ra7a,
a+i,i-= )er .easurin* uni- Na-iona,
1 500 au,-s )er )oin- o
)resen+e
3
2!3#rou+-
re,a-e a++ess
Iniiua,s
in -e L$"
15 *rou)na-iona,,=
Nu.ber o a+-ie a++oun-sor qua,i=in* )rou+-s )er
ins-i-u-ion
Na-iona,
04 58 4
a+-ie a++oun-sin 201 ?$A$$A
a++oun-s no-in+,ue@
3
T#"a 04
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<<%3he definitionsF StandardsF 3ar(et !ar6ets and Key Measure!ent Principles of Access
0eo6raphic #ccess
1%1%5/ *reamble: !inancial inclusion /ill be accomplished throu6h utilisin6 acombination of ban.7mana6ed, third party, and client7o/ned resources0&nly the cate6ory of resources (sales people, #TMs, automatic noteacceptors, points of sale devices, retail a6encies, etc0) can be6eo6raphically identified and trac.ed0 The latter cate6ory of client7o/ned infrastructure (mobile phones and personal computers etc0)althou6h providin6 the most cost effective and convenient access,cannot be easily identified /ithin a specific 6eo6raphic position0
1%1%52 Due to the above, /e su66est that access via these t/o cate6oriesof resources be measured throu6h different methodolo6ies0
1%1%52%1 eo6raphic ban.in6 access
1%1%52%" Definition: *oints of representation:i0 3ransaction Points are points at /hich customers can ta.e cash or ma.e a
purchase from their accounts0 (u66ested tar6et of ?H)
ii0 Serice Points are points /here a customer can reset a *I", do money transfers,6et a statement, or initiate account 5ueries0 (u66ested tar6et of >'H)
iii0 Sales Points are points at /hich customers can replace a card, deposit cash intotheir accounts, or ac5uire a transaction account, a funeral policy, a savin6s accountor a loan0 (u66ested tar6et of 2'H)
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<<%13ar(et !ar6et& ualifyin6 #reas are municipal suburbs or sub7areas in
/hich more than 'H of households fall /ithin %M to 0
<<%"Measurement principles:
00 The sector /ill be measured as a collective and not on an individualinstitution basis0 "ot/ithstandin6 this, each institution /ill be measuredindependently for compliance a6ainst its o/n tar6ets, the criteria of /hich to be determined and a6reed by an industry /or.in6 committee0
1 Therefore, there must be at least one ales *oint /ithin .m of theidentified areas, at least one ervice point /ithin ' .m of the identified
areas and one transaction point /ithin .m of the identified areas,re6ardless of /hich institution<s infrastructure is present0
<<%"%1 Measurement
<<%"%1%1 $onvenient #ccess is the presence of:i0 # ales *oint /ithin a .m radius of a 5ualifyin6 area
ii0 # ervice *oint /ithin a '.m radius of a 5ualifyin6 area
iii0 # Transaction *oint /ithin a .m radius of a 5ualifyin6 area
:B: To avoid any doubt, an #ccess *oint that meets all three criteria above
may be counted under all three line items of the eo6raphic #ccessscorecard0 Therefore, if a sales point is /ithin a .m radius of the 5ualifyin6
area it /ill count under all three 6eo6raphic access line items, since it has all
the features of all three points of presence0
1%1%54 eo6raphic access /ill be evaluated in three steps:i0 Identify ualifyin6 #reas
ii0 Identify ales *oints, ervice *oints and Transaction *oints /ithin theualifyin6 #reas
iii0 #llocate points on the basis that at least ?'H of people in a ualifyin6 #rea
have $onvenient #ccess to a ales *oint (/ithin a .m radius), ervice*oint (/ithin a ' .m radius) or Transaction *oint (/ithin a .m radius)0
eo6raphical access is specifically about pro=imity to Transaction, ervice
and ales *oints and does not imply product holdin6, /hich is covered
separately in the *roduct #ccess section0
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<<%"%" Electronic customer infrastructure access: *opulation*enetration
<<%"%"%1 *reamble: ince access via a customerJs o/n or third partyinfrastructure cannot easily be pinpointed per specific
6eo6raphic area, the penetration of certain transaction types toan identified client base, on identified channels /ill be used asa measure of access for mobile (cell phone) ban.in6,telephone ban.in6, internet ban.in6, and others0
<<%"%"%" Definition: #ccess via any client7o/ned or third partyinfrastructure4 /hich /ill include but not be limited to, internetban.in6, cell7phone ban.in6, telephone ban.in6, or any ne/electronic product and A or technolo6y0
<<%"%"%# Tar6et mar.et: Tar6et $ustomers are individual customers
/ho earn less than R ''' per month (annually ad;usted by$*I)0 $ustomer income should be derived from the customerJsaccount behaviour usin6 an a6reed formula, still to bedetermined by an industry /or.in6 committee0
<<%"%"%) *roducts: ualifyin6 transactions on products include butare not limited to, money transfers, account7to7accounttransfers, prepaid purchases and balance en5uiries done usin6the customerJs mobile phone, telephone, internet ban.in6 or any other ne/ technolo6y0
<<%"%"%< Measurement: Electronic #ccess /ill be measured atindustry level but /ith a6reed tar6ets per individualor6anisation0 Each or6anisation /ill be measured on their o/nperformance a6ainst their a6reed tar6et0
<<%"%"%/ &ther comments: It is proposed that an Industry Bor.in6$ommittee be convened to evaluate criteria and measurement0This is a necessity since the 5ualifyin6 areas (previouslynational .m and ' .m, and 5ualifyin6 points of representation (previously branch and #TM, no/ all inclusive)
have been chan6ed0 This /ill necessarily result in ne/baseline numbers and ne/ly identified industry 6aps0 These6aps /ill need to be addressed by the industry via all theimpacted institutions0 #s such individual institution tar6ets mustbe formulated and a6reed, ta.in6 impact on capital e=penditureas /ell as economic viability into consideration0
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01-an.in6 #ccess via Densification
010 *reamble: Traditionally, physical access to ban.in6 products /as onlymeasured by means of the number of certain points of access per
6eo6raphic area0 -an.in6 access via the densification principle aimsto measure the availability of cash7/ithdra/al facilities per the number of 5ualifyin6 customers based on the population density in the a6reedmeasurement area0
0103 Definition:
01030-an.in6 access throu6h densification refers to the principle of measurement of the number of access points per number of thetar6et 6roup of clients /ith the sole aim of easin6 access to the facilityof obtainin6 cash from their 5ualifyin6 accounts /ithin easy reach of
their home base (measurement unit A area)0
010303Bhereas eo6raphical #ccess refers to the number of %Ms 7/ithin a specified radius of a point of representation (the point of representation bein6 the point from /hich the radius is measured),Densification refers to the number of points /ithin the boundaries of asuburb A measurin6 unit /here at least 'H of the population isclassified as bein6 %M 7 (the reference point is the suburb rather than the point of presence)0
010 Tar6et mar.et: The tar6et mar.et /ill be the %M 7 6roup of thepopulation of no less than ,'' %M 7 individuals /ithin a6reedsuburbs A measurement unit0
0101 Tar6ets: #t least one Cpoint of presence< per ,'' people in the %M7 cate6ory /ithin a suburb A measurin6 unit, /here Cpoint of presence< refers to any point of presence /ithin a suburb /here atar6et mar.et beneficiary is able to dra/ cash0 *oints of presencemeasurements e=cludes the #*&0
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010 Measurement: The sector /ill be measured as a /hole and not on anindividual institution basis based on the a6reed principle one point of representation /ith cash /ithdra/al facility /ithin the boundaries of the suburb A measurement area per , '' individuals in the %M 76roup, /here the representation of the latter e=ceeds 'H or more of the population /ithin the suburb A measurement area0 uburbs thathave a population of less than ,'' %M 7 /ill be e=cluded fromthe calculations0
0*roduct access
00 *reamble: Despite the perception of the success of the M8ansiaccount, ban.s found that the product is not as successful in
penetratin6 the tar6et mar.et as /as ori6inally hoped for0 This is mainlydue to the sti6ma of it bein6 perceived as a Fpoor person<sG ban.in6product0 The M8ansi product is limited in /hat it offers and is therefore5uic.ly out6ro/n by its user0 This necessitated the various participatin6institutions to e=pand their o/n offerin6s, /hich are far moresuccessful at achievin6 financial inclusion, yet these products are notreco6nised as part of the openin67up of the tar6et mar.et0
003 Tar6et mar.et: The tar6et mar.et /ill be the %M 7 6roup of theeconomically active population0
00 *roducts: #ny product /ill 5ualify as an #ccess *roduct if it conformsto the minimum #ccess tandard /hich /ill be ne6otiated as part of the sector code process, in accordance /ith applicable la/0
000 "ote: #pproval may be re5uired throu6h the *##, $omp$omor any other relevant process and it is e=pected that the charter councillobby the relevant sta.eholders in order to facilitate this proposal
001 *articipation: #ny ban. may apply to the $harter $ouncil to have any
number of products approved as #ccess ualifyin6 *roducts for thepurposes of meetin6 their #ccess Tar6ets0 The $ouncil shall approvesuch products if the product meets the minimum #ccess tandards0Each ban. is then free to brand their 5ualifyin6 product as they deemappropriate and sell it into the mar.et in the most appropriate /ay thatis ali6ned to their o/n strate6y and in a manner that promotes financialinclusion0
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0010To achieve the above, the current as/itch A*## a6reements mayneed to be restructured and rene6otiated0 Much simpler a6reementsthat promote the correct behaviour are envisa6ed0
00103:ote& The Reserve -an. is facilitatin6 and overseein6 a revision of
interchan6e rates for all payment streams in outh #frica, includin6interchan6e in the card environment0 The Terms of Reference for thepro;ect is supported by the "ational Treasury and the $ompetition$ommission, and has been endorsed by the -an.<s overnors<E=ecutive $ommittee0 #ccordin6 to the Terms of Reference, theob;ective of this pro;ect is for the Reserve -an. to “facilitate a fair and transparent process were!" intercange rates for eac of te
pa"#ent strea#s, officiall" recognised and registered wit te$a"#ents Association of o&t Africa '$AA(, are reviewed in ter#sof:
i) *eter te" are feasi!le and+or &stifia!le in tat strea#- and
ii) Are realistic and appropriate for tat pa"#ent strea# !ased on accepta!le para#eters).
iii) !urthermore, the Terms of Reference state: F/t will !e a specific re&ire#ent in tis proect tat sta1eolders will not !e per#itted to gater togeter to disc&ss intercange or specific aspects relating to tedeter#ination of te act&al intercange rateG0
00 Measurement: Each institution /ill be measured accordin6 to thenumber of accounts /ith activity /ithin the last ?' days, based on the levelof conformity allocated by the $harter $ouncil0
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REVISED FINANCIAL SECTOR CODE SERIES FS8
STATEMENT FS84
THE MEASUREMENT OF THE ACCESS TO FINANCIAL SERVICES ELEMENT OF
BROAD-BASED BEE AS IT RELATES TO LONG-TERM ASSURERS
I&&*!% *n%!$ &!c"i#n / (0) # "1! B$#a%-Ba&!% Bac2 Ec#n#ic E,#3!$!n" A!n%!n"
Ac" # 405
In"$#%*c"i#n
The !inancial ector ac.no/led6es that access to first7order retail financial
services is fundamental to transformation and to the development of the
economy as a /hole0
The %on6 Term Insurance industry underta.es to ma.e available appropriate
first7order retail financial services, affordably priced and throu6h appropriate
and accessible physical and electronic infrastructure to the !inancial ector
$ode tar6et mar.et0
A$$an6!!n" # "1i& &"a"!!n"
Pa$a S*+7!c" Pa6!
1! Obe+-ies o -is s-a-e.en-!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!134
2! Te $+ore+ar or A++ess -o Finan+ia, $eri+es!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!134
3! #rou+-s an )rou+- s-anars!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!134
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1 Objecties of this state!ent
&b;ectives of this statement are to specify:
0The #ccess corecard as it relates to companies operatin6 /ithin the
%on67term Insurance industry
03The definitions, standards, tar6et mar.ets and .ey measurement
principles of the sub7cate6ories of the #ccess element
</%3he Scorecard for Access to $inancial Serices as it relates to co!paniesoperatin( ;ithin the Lon(0ter! .nsurance .ndustry
D!&c$i,"i#n W!i61"in6 Ta$6!"
2!1 A,,$#,$ia"! P$#%*c"& 3 6
2!2 Ma$2!" P!n!"$a"i#n 539023!00
2!2!1 Tar*e-: 20144 ;; 169!55
2!2!2 Tar*e-: 20155 165 120!0
2!2!3 Tar*e-: 2016 5 452 01!;5
2!2!4 Tar*e-: 2015 39 023!00
2!3 T$an&ac"i#na Acc!&& 2As )er Guian+e
No-e
T#"a 12
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<2%Products and product standards
0Bhen interpretin6 the terms of the Revised ector $ode for life offices
and collective investment schemes, F#ccessG encompasses the follo/in6
concepts:
#%"Appropriate Products& %ife *roducts appropriate for identified needs 7
The %ife products considered are those that address the identified
priorities of death and serious illness0 In the access mar.et these ris.s
are often insured throu6h funeral schemes and credit life cover0 &ther
forms of product are ho/ever possible0
030 # set of minimum standards for %ife products is retained, a.in to the @N$#T standard approach, ($#TP fair $har6es, easy #ccess, decentTerms)0 This /ill ensure that appropriate products are available tothose re5uirin6 ris. miti6ation tools to address identified priorities0These standards /ill be determined follo/in6 the 6a8ettin6 of this$ode and /ill be published as a uidance "ote0
0303 # process needs to be in place to enable the update of thesestandards from time to time and allo/ for the creation of ne/standards0
03ransactional access 7 The opportunity to purchase the product, pay the
premiums due, ma.e amendments to the policy, and to lod6e a claim and
receive payment of the claim0
01Inte6rated products
010 "e/ standards are created for retirement #* mar.et products0
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0103 #n inte6rated consumer focused approach that re5uirescollaboration bet/een ban.in6, short term insurance, lon6 terminsurance and $I is investi6ated, based on consumer needs
#%)3ar(et !ar6et& The tar6et mar.et for %ife products /ill be based on
income and pe66ed at the ta= threshold for individuals and double the ta=
threshold for families0 The tar6et mar.et definition is to be ad;usted
annually, based on chan6es to ta= threshold0 The ta= threshold currently
stands at ;ust under R2',''' per annum0
#%<Measure!ent& The .ey measurement of success for the provision of
Feffective accessG is the penetration level (usa6e) of appropriate products/ithin the above tar6et mar.et0 Tar6ets for transactional access and
penetration /ill be measured by in7force A on boo.s business at
measurement date0
00 #ppropriate *roducts K Each product that meets the re5uiredstandards /ill be F!$ compliantF0
003 Transactional #ccess K Measured entities /ill score points for
the proportion of the standard map (coverin6 the adult population basedon the recent #!RI ban.in6 densification study) in /hich they areable to demonstrate transactional access0
1 Scorin(& *oints are scored by measured entities as follo/s:
020 points /ill be allocated to Appropriate Products0 Each compliantproduct made available by a company /ill score A" = points, /here
" is the total number of products for /hich standards have beendeveloped0 Co#panies will also ave to de#onstrate tat eac&alif"ing prod&ct represents at least 5% of new !&siness accessvol&#es)
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0203 > points /ill be allocated to Mar6et Penetration0 The tar6ets /ill bephased in over the period 3' K 3'>0 The tar6et /ill be based on anappropriate mar.et share measure as a proportion of the overallindustry tar6et belo/0
1 3 points /ill be allocated to transactional access0
0>Ney Dependencies
0>0 armonisation of #ccess product definitions to !#I re(ulatory e*a!re=uire!ents 0 it is critical that !$ definitions for access productsare ali6ned to the various re6ulatory e=am e=emptions that may be
made available by the !- to intermediaries distributin6 accessproducts0
0>03 $larity of overnment<s intentions to provide savin6s alternatives atnational level to this mar.et0
0>0 *roduct and measurement standards includin6 ma= cover limits, etc,re5uire updatin6 in the form of 6uidance notes0 This /ill occur after 6a8ettin60
#%43ar(et Life Products & The tar6et penetration /ill be ,>+,'3 policies
issued to the tar6et mar.et based on a formula to be contained in a
6uidance note issued by the $harter $ouncil post 6a8ettin60
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REVISED FINANCIAL SECTOR CODE SERIES FS8
STATEMENT FS85.
THE MEASUREMENT OF THE ACCESS TO FINANCIAL SERVICES ELEMENT OF
BROAD-BASED BEE AS IT RELATES TO SHORT TERM INSURERS
I&&*!% *n%!$ &!c"i#n / (0) # "1! B$#a%-Ba&!% Bac2 Ec#n#ic E,#3!$!n" A!n%!n"
Ac" # 405
In"$#%*c"i#n
The !inancial ector ac.no/led6es that access to first7order retail financial
services is fundamental to transformation and to the development of the
economy as a /hole0
The hort Term Insurance industry underta.es to ma.e available appropriate
first7order retail financial services, affordably priced and throu6h
appropriate and accessible physical and electronic infrastructure to the
!inancial ector $ode tar6et mar.et0
A$$an6!!n" # "1i& &"a"!!n"
Pa$a S*+7!c" Pa6!
1! Obe+-ies o -is s-a-e.en-!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!13;
2! Te $+ore+ar or A++ess -o Finan+ia, $eri+es!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!13;
3! #rou+- re,a-e A++ess > #rou+-s Tar*e- .ar8e-s an Be= "easure.en- #rin+i),es oA++ess!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!139
4! $+orin*!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!140
5! Tar*e-s!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!143
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1 OBEC3.>ES O$ 3.S S3A3EME:3
&b;ectives of this statement are to specify:
0The #ccess corecard as it relates to companies operatin6 /ithin the
%on67term Insurance industry
03The definitions, standards, tar6et mar.ets and .ey measurement
principles of the sub7cate6ories of the #ccess element
<4%3E SCORECAR' $OR ACCESS 3O $.:A:C.AL SER>.CES
Acc!&& "# Financia S!$<ic!& W!i61"in6In%*&"$
Ta$6!"&
4>0A,,$#,$ia"! P$#%*c"& 4
4>4In&*$anc! P#ici!& 0
Ma'i* S*
In&*$!%
4>4>0P!$&#na Lin!& P#ici!& 9 ?84>
2!2!1!1 "o-or ei+,e R60000!00
2!2!1!2 ouseo, +on-en-s R10000!00
2!2!1!3#ro)er-= ( o.eo7ners R350000!00
2!2!1!4 O-er
4>4>4 C#!$ica P#ici!& 9 4@?@>
2!2!2!1 ,a+8 E"EXs an <$Es > equi).en-an +on-en-s
R100000!00
2!2!2!2,a+8 E"EXs an <$Es )ro)er-= R500000!00
2!2!2!3 A*ri+u,-ure
R35 .i,,ion or
)ro)er-= R500000
or equi).en-R100000 or
)rou+e
2!2!2!4 Lies-o+8 R600000
2!2!2!5 ,a+8 E"EXs an <$Es Liabi,i-= R1 .i,,ion
T#"a 04
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<5%Product related Access D ProductsF 3ar(et !ar6ets and Key Measure!entPrinciples of Access
0# Fma=imum sum insuredG metric has been established as a basis of
tar6et measurement and performance across a broad ran6e of short7term
insurance sectors (but e=cludin6 cell7phone insurance and consumer
credit insurance that has been ade5uately covered else/here in the
mar.et)0
<5%1%1 The ma=imum sum insured metric has been structured to tar6etthose areas of the population that have been previously uninsured0 Themetric has been broadly based on products aimed at individualsearnin6 belo/ the ta= threshold, households /ith an income belo/
double the ta= threshold and -lac. small businesses and small -lac.farmers0
#%"3ar(et Mar6et& The ma=imum sum insured metric has been used as a
pro=y for the tar6et mar.et0 #s such all products that meet the #ccess
tandards or have been deemed to be appropriate products /ill be
counted, re6ardless of /ho the policy has been issued to0
030 The Tar6et Mar.et for -lac. E,s and EME<s /ill as defined in the!inancial ector $ode under Empo/erment !inancin60
0303 The Tar6et Mar.et #6riculture and %ivestoc. /ill be -lac. farmers asdefined in the !inancial ector $ode under Empo/erment !inancin60
#%#Products: The choice of products has been selected to meet the
broader charter ob;ectives0 ualifyin6 short7term insurance accessproducts are those desi6ned to support the follo/in6 areas and that meet
the relevant standard0 *roducts /ill be for the follo/in6 areas:
<5%1%" %o/7income ousin6
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<5%1%# -lac. Es and EMEs (as defined in the dti $odes of ood*ractice on -7--EE)
<5%1%) #6riculture
<5%1%< Infrastructure
<5%1%/ $o7operatives
<5%1%2 %o/7income individuals
#%)Standards& *roduct standards for each product cate6ory /ill be
determined follo/in6 the 6a8ettin6 of this $ode and /ill be published as a
uidance "ote0
0Ney measurement principles
00 Measurement /ill be based on the number of active 5ualifyin6policies that meet the relevant product standards or have been deemedappropriate by the $harter $ouncil0
003 The .ey measurement of success is the product penetration(ta.e7up) into the tar6et mar.et and /ill be measured on the number of policies sold and active as at the date of measurement0 The tar6et isdetermined, based on the si8e of the mar.et durin6 3' and publishedby the $harter $ouncil0
00 The tar6et is an industry tar6et and not an individual companytar6et0 Individual company tar6ets /ill be allocated, based on thecompany<s mar.et share as at December 3'0 $ompanies /ill beallocated a *ersonal %ines tar6et and a $ommercial %ines tar6et0$ompanies that operate solely in the *ersonal %ines or $ommercial%ines space /ill be allocated a sin6le tar6et0
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001 $ompanies /ill be measured a6ainst the *ersonal %ines and Aor $ommercial %ines tar6et0 $ompanies are free to choose anycombination of products /ithin the respective business lines0
/7%Scorin(
10$ompanies that currently offer both *ersonal and $ommercial %ines
products /ill be allocated a tar6et for each product line and /ill be
measured a6ainst each tar6et0 The /ei6htin6 /ill be points for each
product line0 $ompanies that currently only offer one of the product lines
(either personal or commercial), /ill only be allocated a tar6et a6ainst
that product line, based on their overall mar.et share, and that /ill have a/ei6htin6 of ' points0
103$ompanies can score points in the follo/in6 areas:
1030 @p to 3 points for the development of products that meet the $harter #ccess standards, or as oterwise approved as appropriate prod&cts!" te 2inancial ector Carter Co&ncil) This has been included as ameasurement as these are 6reen field<s products for the industry andthis is done in order to encoura6e development of these products0 This/ill be revie/ed annually to assess the on76oin6 suitably of this tar6etand measurement0
10303 @p to ' points for the number of active 5ualifyin6 policies that meetthe relevant product standards, as at the date of measurement0
1030 *roducts have to meet all the standards to be classified as 5ualifyin6products0 hould a company deem a product appropriate for thismar.et, but it does not meet all standards4 such a company can applyto the $harter $ouncil for the product to be approved as an appropriateproduct to be included for scorin6 purposes0 The $harter $ouncil /illneed to assess the product on it<s appropriateness for the Tar6etMar.et and the intention of the $harter #ccess provisions0
10301 Bhere companies sell composite policies, each ris. covered under the policy /ill becounted as a separate policy for scorin6 purposes0 This is necessary in order to preventthe necessity to sell separate products to the same client, /hich /ill add to the cost of the
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insurance cover0 Each ris. covered /ill need to comply /ith the associated access
standards0
)%#Appropriate Products: $ompanies /ill score points for each product
that they develop that meets the relevant product standards approved by
the $harter $ouncil0 Each product developed /ill be scored at 0.20
points. The available points have been split bet/een the various
products to encoura6e companies to develop as many products as
possible0
A,,$#,$ia"! P$#%*c"& P#in"&
P!$&#na Lin!&
"o-or Hei+,e 0!20
ouseo, Con-en-s 0!20
o.eo7ners 0!20
)ther !.2!
C#!$cia Lin!&
,a+8 E"Es <$Es an Coo)era-ies: equi).en- 0!20
,a+8 E"Es <$Es an Coo)era-ies: liability !.2!
,a+8 E"Es <$Es an Coo)era-ies: )ro)er-= 0!20
A*ri+u,-ure 0!20
Lies-o+8 0!20
)ther !.2!
T#"a 4
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100 $ompanies that /ill only have a tar6et for either *ersonal %ines or $ommercial %ines only, /ill score accordin6 to the tables belo/0
i0 *ersonal %ines
i $ommercial
%ines
163
A,,$#,$ia"! P$#%*c"& P#in"&
P!$&#na Lin!&
"o-or Hei+,e 0!5
ouseo, Con-en-s 0!5
o.eo7ners 0!5
)ther !.*
T#"a 4
A,,$#,$ia"! P$#%*c"& P#in"&
C#!$cia Lin!&
,a+8 E"Es <$Es an Coo)era-ies:equi).en- 0!33
,a+8 E"Es <$Es an Coo)era-ies:
,iabi,i-= 0!33
,a+8 E"Es <$Es an Coo)era-ies:
)ro)er-= 0!33
A*ri+u,-ure 0!33
Lies-o+8 0!33
O-er 0!35
T#"a 4
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/1%3ar(ets
#s a6reed by the $harter $ouncil, tar6ets /ill be phased in over a number of
years0
0The tar6ets are as follo/s:
Date *ercenta6e Tar6et number of policies
*ersona
l
%ine
s
$ommerci
al
%ines
*ersonal
%ines
$ommercial
%ines
'A2A3'
1
'H 'H 32' 1302' + 22?0''
'A2A3'
1H 2'H +' 2301' >' +'01'
'A2A3'
2
2'H >'H 3' ?103' ++ 1?0?'
'A2A3'
>
>H ?'H 2 '10'' 33> +'>03'
'A2A3'
?
''H ''H ?2? '>30'' 3?1 ??10''
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BROAD BASED BLACK ECONOMIC EMPOWERMENT ACT
SECTIO /(0) CODES OF GOOD PRACTICE AS AMENDED
SCHEDULE 0
INTERPRETATION AND DEFINITIONSPa$" 0. In"!$,$!"a"i#n
Te +oes o Goo #ra+-i+e .us- be in-er)re-e a++orin* -o -e o,,o7in* )roisions
un,ess -e +on-e'- requires a ieren- .eanin*:1 In in-er)re-in* -e )roisions o -e Coes an= reasonab,e in-er)re-a-ion +onsis-en-
7i- -e obe+-ies o -e A+- an -e EE $-ra-e*= .us- -a8e )re+een+e!
2 ors i.)or-in* )ersons sa,, 7ere -e +on-e'- so requires or a.i-s in+,ueiniiua,s ir.s )ar-nersi)s -rus-s +or)ora-ions *oern.en-a, boies
au-ori-ies a*en+ies unin+or)ora-e boies o )ersons or asso+ia-ions an an=
or*anisa-ion ain* ,e*a, +a)a+i-=!
3 Te $+eu,es an Anne'es -o -e Coes are an in-e*ra, )ar- o -e Coes an a
reeren+e -o -e Coes in+,ues a reeren+e -o -e $+eu,es!
Pa$" 4. D!ini"i#n&
In -ese Coes un,ess -e +on-e'- o-er7ise requires:
MA+&#$+!%J .eans a .easure o -e "easure En-i-=s abi,i-= -oae su++essu,,= se+ure or.a, )er.anen- or ,on*
-er. +on-ra+- e.),o=.en- or -e Learner or -o assis-
-e Learners )ro+ee 7i- ur-er eu+a-ion an
-rainin*! ere -e Learner 7as a,rea= e.),o=e b= -e "easure En-i-= 7en e +o..en+e -e
Learnersi) an .ere,= +on-inues 7i- is(er e'is-in* e.),o=.en- a-er -e Learnersi) i- 7i,,
no- qua,i= as Absorbsion/
Ac=*i&i"i#n D!+"J .eans -e eb-s o:
?a@ ,a+8 #ar-i+i)an-s in+urre in inan+in* -eir
)ur+ase o -eir equi-= ins-ru.en-s in -e"easure En-i-=/ an
?b@ Quris-i+ )ersons or -rus-s oun in -e +ain o
o7nersi) be-7een -e een-ua, ,a+8 #ar-i+i)an-s an -e "easure En-i-= or -e sa.e
)ur)ose as -ose in ?a@!
Deb- -a- subs-i-u-es or re),a+es -e eb- in ?a@ an ?b@aboe is s-i,, A+quisi-ion Deb- no-7i-s-anin* -e
a+- -a- i- .a= be o7e -o a ieren- inan+ier!
A,,$!n"ic!&1i,J .eans an a*ree.en- be-7een an a))ren-i+e an ane.),o=er or a se- )erio o -i.e urin* 7i+ -e
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a))ren-i+e 7or8s an re+eies -rainin* in -e
7or8),a+e!
A&&#cia"!% En"!$,$i&!J .eans an En-i-= 7i- 7i+ a $e,,er as +on+,ue a
<ua,i=in* Transa+-ion/
B-BBEEJ .eans roaase ,a+8 E+ono.i+ E.)o7er.en-
B-BBEE C#,ian" En"i"J .eans a "easure En-i-= -a- as a+iee a- ,eas- aLee, 1 -o Lee, ; EE $-a-us Lee, as )er
s-a-e.en- 000/
B-BBEE C#n"$#!% C#,anJ .eans a uris-i+ )erson ?in+,uin* a -rus-@ ain*
sareo,in* or si.i,ar .e.bers in-eres- in 7i+ b,a+8 )ar-i+i)an-s eno= a ri*- -o E'er+isab,e Ho-in*
Ri*-s -a- is a- ,eas- 51 o -e -o-a, su+ ri*-s
.easure usin* -e F,o7 Trou* #rin+i),e/
B-BBEE O3n!% C#,anJ .eans a uris-i+ )erson ?in+,uin* a -rus-@ ain*
sareo,in* or si.i,ar .e.bers in-eres- -a- is EE +on-ro,,e in 7i+ ,a+8 )ar-i+i)an-s eno= a
ri*- -o E+ono.i+ In-eres- -a- is a- ,eas- 51 o -e-o-a, su+ ri*-s .easure usin* -e F,o7 Trou*#rin+i),e/
B-BBEE R!c#6ni"i#n L!<!J .eans -e )er+en-a*e EE re+o*ni-ion Lee,s as
e-er.ine:
?a@ For En-i-ies -a- are nei-er <ua,i=in* $.a,,
Finan+ia, Ins-i-u-ion s no- E'e.)-e "ir+oEn-er)rises usin* s-a-e.en- 000/
?b@ For <ua,i=in* $.a,, Finan+ia, Ins-i-u-ion s usin*
-e s-a-e.en- 000/ an
?+@ For E'e.)-e "i+roEn-er)rises -e a)),i+ab,eee.e EE Re+o*ni-ion uner s-a-e.en-
000/
B-BBEE S"a"*&J .eans -e EE s-a-us o a "easure En-i-= as
e-er.ine uner s-a-e.en- 000
B-BBEE S"$a"!6J .eans -e EE $-ra-e*= as +on-e.),a-e in
se+-ion 11 o -e EE A+- 53 o 2003 as
a.ene
B-BBEE V!$iica"i#n P$#!&&i#na .eans a bo= a))oin-e b= -e "inis-er or -e
R!6*a"#$J a++rei-a-ion o ra-in* a*en+ies or -e au-orisa-ion oEE erii+a-ion )roessiona,s/
B!n!i" Fac"#$J .eans a a+-or s)e+iie in -e enei- Fa+-or "a-ri'
a)),i+ab,e -o i'in* -e .one-ar= a,ue o En-er)rise
Dee,o).en- an $u)),ier Dee,o).en- an $o+ioE+ono.i+ Dee,o).en- Con-ribu-ions +,ai.ab,e
uner s-a-e.en- 400 an 500
B!n!i" Ma"$i' Fac"#$J .eans -e enei- Fa+-or "a-ri' or En-er)rise
Dee,o).en- an $u)),ier Dee,o).en- an $o+io
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E+ono.i+ Dee,o).en- Con-ribu-ions +,ai.ab,e
uner s-a-e.en- 400 an 500
Bac2 D!&i6na"!% G$#*,&J .eans:
(a) %ne.),o=e ,a+8 #eo),e no- a--enin* an no-require b= ,a7 -o a--en an eu+a-iona,
ins-i-u-ion an no- a7ai-in* a.ission -o aneu+a-iona, ins-i-u-ion/
(+) ,a+8 #eo),e 7o are =ou- as eine in -e
Na-iona, &ou- Co..ission A+- o 1996/
(c) ,a+8 #eo),e 7o are )ersons 7i- isabi,i-ies as
eine in -e Coe o Goo #ra+-i+e one.),o=.en- o )eo),e 7i- isabi,i-ies issue
uner -e E.),o=.en- Equi-= A+-/
(%) ,a+8 #eo),e ,iin* in rura, an uner ee,o)eareas
?e@ ,a+8 .i,i-ar= e-erans 7o qua,iies -o be +a,,e
a .i,i-ar= e-eran in -er.s o -e "i,i-ar=He-erans A+- 1; o 2011/
Bac2 N!3 En"$an"&J .eans ,a+8 )ar-i+i)an-s 7o o, ri*-s oo7nersi) in a "easure En-i-= an 7o beore
o,in* Equi-= Ins-ru.en-s in o-er En-i-ies 7i+
as a -o-a, a,ue o .ore -an R50000000 .easure
usin* a $-anar Ha,ua-ion "e-o/
Bac2 P!#,!J Is a *eneri+ -er. 7i+ .eans Ari+an Co,oures an
Inians
'a( o are +i-iPens o -e Re)ub,i+ o $ou- Ari+a
b= bir- or e+en-/ or 'b( o be+a.e +i-iPens o -e Re)ub,i+ o $ou-
Ari+a b= na-ura,isa-ion
'i( eore 2 A)ri, 1994/ or
'ii( On or a-er 2 A)ri, 1994 an 7o 7ou,
ae been en-i-,e -o a+quire +i-iPensi) b=
na-ura,isa-ion )rior -o -e a-e!
B$#a%-Ba&!% O3n!$&1i, Sc1!!J .eans a o7nersi) s+e.e 7i+ .ee-s -e ru,es se-
ou- in Anne'e 100/
C#,ani!& Ac"J .eans -e Co.)anies A+- No! 1 o 200; as a.ene
or subs-i-u-e/
C#,!"!n" P!$&#nJ .eans a )erson 7o as a+quire -rou* -rainin*qua,ii+a-ion an e')erien+e -e 8no7,e*e an s8i,,s
ne+essar= or uner-a8in* an= -as8 assi*ne -o -e.
uner -e +oes/
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C#$! S2i&J .eans s8i,,s -a- are:
'a( Ha,ueain* -o -e a+-ii-ies o -e "easureEn-i-= in ,ine 7i- i-s +ore business/
'b( In areas -e "easure En-i-= +anno- ou-sour+e/ or
'c( i-in -e )rou+-ion(o)era-iona, )ar- o -e
"easure En-i-=s a,ue+ain/ as o))ose -o -esu)),= sie/ seri+es or o7ns-rea. o)era-ions/
C$i"ica S2i&J .eans -ose s8i,,s ien-iie as bein* +ri-i+a, b= an=
$ETA/
C*$$!n" E=*i" In"!$!&" Da"!J .eans -e ,a-er o++urrin* o -e a-e o
+o..en+e.en- o s-a-e.en- 100 an -e a-e u)on7i+ -e ear,ies- o a,, s-i,, o)era-ie -ransa+-ions
uner-a8en b= -e "easure En-i-= in orer -o a+iee
b,a+8 ri*-s o o7nersi) be+a.e ee+-ie anun+oni-iona,
EAPJ -e na-iona, or )roin+ia, 7i+eer -e +ase .a= be
E+ono.i+a,,= A+-ie #o)u,a-ion as e-er.ine b=$-a-s $A an annua,,= )ub,ise in -e Co..ission
or E.),o=.en- Equi-= Re)or- in -er.s o -e
e.),o=.en- Equi-= Re*u,a-ions ro. -i.e -o -i.e!Te o)era-ie EA# or -e )ur)oses o an= +a,+u,a-ion
uner -e Coes 7i,, be -e annua, EA# s-a-is-i+s
)ub,ise in -e Co..ission or E.),o=.en- Equi-=Re)or- i..eia-e,= )re+ein* -e "easure.en-
#erio bein* .easure/
Ec#n#ic In"!$!&"J .eans a +,ai. a*ains- an En-i-= re)resen-in* a re-urn
on o7nersi) o -e En-i-= si.i,ar in na-ure -o a
iien ri*- .easure usin* -e F,o7 Trou* an7ere a)),i+ab,e -e "oiie Trou* #rin+i),es/
E,#!n" E=*i" Ac"J .eans -e E.),o=.en- Equi-= A+- No! 55 o 199; as
a.ene/
E,#!n" E=*i" R!6*a"i#n&J .eans -e re*u,a-ions uner -e E.),o=.en- Equi-=
A+-
E!!n"&J .eans -e .easurab,e quan-i-a-ie or qua,i-a-ie
e,e.en-s o EE +o.),ian+e in -e Generi+$+ore+ar an -e Coes/
E,#!% L!a$n!$J In -er.s o se+-ion 1;?1@ o -e $8i,,s Dee,o).en-
A+- i- .eans a ,earner -a- 7as in -e e.),o=.en- o
-e e.),o=er )ar-= -o -e ,earnersi) a*ree.en-+on+erne 7en -e a*ree.en- 7as +on+,ue! Te
,earners +on-ra+- o e.),o=.en- is -ereore no-ae+-e b= -e a*ree.en-!
E,#!! 3i"1 a Di&a+ii"J as -e .eanin* eine in -e Coe o Goo #ra+-i+eon Be= As)e+-s o Disabi,i-= in -e or8),a+e issue
uner se+-ion 54 o -e E.),o=.en- Equi-= A+-/ a,i*n
7i- -e E.),o=.en- Equi-= A+-
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E,#!!J bears -e .eanin* as eine in -e E.),o=.en-
Equi-= A+-/
E,#!! S1a$! O3n!$&1i, .eans a 7or8er or e.),o=ee s+e.e as )er Anne'e
P$#6$a!J/ 100?C@
En"!$,$i&! D!<!#,!n" C#n"$i+*"i#n&J .eans .one-ar= or non.one-ar= +on-ribu-ions as )er
$-a-e.en- 400 rea -o*e-er 7i- Anne'e 400?@+arrie ou- or -e benei- o an= En-i-= 7i- -eobe+-ie o +on-ribu-in* -o -e ee,o).en-
sus-ainabi,i-= an inan+ia, an o)era-iona,
ine)enen+e o -a- En-i-=:
En"i"J .eans a ,e*a, en-i-= or a na-ura, or a uris-i+ )erson
+onu+-in* a business -rae or )roession in -e
Re)ub,i+ o $ou- Ari+a
En"$!,$!n!*$J .eans a )erson 7o s-ar-s an( or o)era-es a business
7i+ in+,ues ien-i=in* o))or-uni-ies in -e.ar8e- -a8in* ris8s 7i- a ie7 o bein* re7are
7i- )roi-s/E=*i" E=*i<a!n" C#n"$i+*"i#nJ .eans an equi-= equia,en- +on-ribu-ion .ae b= a
"u,-ina-iona, uner an Equi-= Equia,en- Ines-.en-
#ro*ra..e
E=*i" E=*i<a!n" In<!&"!n" .eans a )ub,i+ )ro*ra..e or s+e.e o an=
P$#6$a!J *oern.en- e)ar-.en- )roin+ia, or ,o+a,*oern.en- in -e Re)ub,i+ o $ou- Ari+a or an=
o-er )ro*ra..e a))roe b= -e "inis-er as an
Equi-= Equia,en- Ines-.en- #ro*ra..e
E=*i" In&"$*!n"J .eans -e ins-ru.en- b= 7i+ a #ar-i+i)an- o,s
ri*-s o o7nersi) in an En-i-=
E=*i<a!nc P!$c!n"a6!J .eans a )er+en-a*e o7nersi) )eror.an+e or a,, -eini+a-or in -e Asso+ia-e En-er)rises O7nersi)
$+ore+ar arisin* ro. a <ua,i=in* Transa+-ionin+,ue in -e O7nersi) $+ore+ar o -e
benei+iar= en-i-=
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E'c*&i#n P$inci,!J is a .easure.en- )rin+i),e use 7en +a,+u,a-in* -e
)oin-s or -e arious ini+a-ors o -e O7nersi)s+ore+ar -a- a,,o7s or -e eu+-ion o a nu.ber o
ri*-s o o7nersi) ?7e-er i- be o-in* ri*-s or
e+ono.i+ in-eres-@ ro. -e -o-a, o su+ ri*-s issue
b= -e "easure En-i-= beore e')ressin* -ose ri*-so o7nersi) e, b= b,a+8 #ar-i+i)an-s as a
)er+en-a*e o a,, su+ ri*-s o o7nersi) issue!Coe 100 an i-s s-a-e.en-s a,,o7s as ire+-e b=
-ose s-a-e.en-s or -e e'+,usion o our +a-*ories o
ri*-s o o7nersi):
a@ -ose e, b= Or*ans o $-a-e an #ub,i+ En-i-ies/ b@ -ose e, as "ana-e Ines-.en-s/
+@ -ose e, b= Non#roi- Co.)anies or #ub,i+
enei- Or*anisa-ions/@ ri*-s o o7nersi) -a- equa-es -o -e a,ue o -e
orei*n o)era-ions o a "u,-ina-iona, usinesso)era-in* in $ou- Ari+a or a $ou- Ari+an"u,-ina-iona, usiness ?see )ara*ra) 6!1 an 6!2
$-a-e.en- 103@
?e@ Te e'+,usions o O7nersi) e, -rou* -een-i-ies in ?a@ -o ?+@ aboe is -o be ee+-e beore
an= e'+,usion in -er.s o ?@ is -o be a)),ie!
E'!c*"i<! Di$!c"#$&J .eans -ose .e.bers o -e oar 7o are e'e+u-ieire+-ors as eine in -e Bin* III Re)or- as
a.ene ro. -i.e -o -i.e
E'!,"!% Mic$# En"!$,$i&!J .eans an En-i-= 7i- an -o-a, annua, Reenue o R10
?-en@ .i,,ions or ,essE'!$ci&a+! V#"in6 Ri61"&J .eanin* a o-in* ri*- o a #ar-i+i)an- -a- is no-
sube+- -o an= ,i.i-
G#+a P$ac"ic!J .eans a *,oba,,= an inor.a,,= a)),ie )ra+-i+e o a
"u,-ina-iona, res-ri+-in* a,iena-ion o equi-= in or -e
sa,e o businesses in i-s re*iona, o)era-ions! Te
)ra+-i+e .us- ae e'is-e beore -e )ro.u,*a-ion o -e A+-
G$an" C#n"$i+*"i#nJ .eans -e .one-ar= a,ue o <ua,i=in*Con-ribu-ions .ae b= -e "easure En-i-= -o a
benei+iar= in -e or. o *ran-s ona-ions is+oun-s
an o-er si.i,ar quan-iiab,e benei-s 7i+ are no-re+oerab,e b= -e "easure En-i-=
G$#*, S"$*c"*$!J .eans an o7nersi) arran*e.en- 7ereb= one or
.ore "easure En-i-ies -a- are uris-i+ )ersons aresubsiiaries o ano-er "easure En-i-= -a- 7ou,
qua,i= as a o,in* +o.)an=
Hi61!$ E%*ca"i#n In&"i"*"i#nJ .eans a i*er eu+a-ion ins-i-u-ion as eine uner
-e i*er Eu+a-ion A+- o 199
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In%ica"#$ P!$c!n"a6!J .eans -e )er+en-a*e +o.),ian+e o -e Asso+ia-e
En-i-= or a,, -e ini+a-ors o -e Asso+ia-eEn-er)rises o7nersi) $+ore+ar! Te +a,+u,a-ion o
ini+a-or #er+en-a*es o,,o7s -e ru,es in s-a-e.en-
100 usin* -e a+-ua, )er+en-a*e +o.),ian+e or ea+
ini+a-or an no- -e resu,-in* s+oresIn%*&"$ S,!ciic Ini"ia"i<!&J .eans -e qua,i=in* +on-ribu-ions -a- are unique -o
-e inus-r= in 7i+ -e en-er)rises o)era-e! For -e
)ur)oses o -e Coes an inus-r= .a= be *rou)e in
.aor iisions in a++oran+e 7i- -e $-anar
Inus-ria, C,assii+a-ion Coin* $=s-e. use b=$-a-is-i+ $ou- Ari+a
In"!$n&1i,J .eans an o))or-uni-= -o in-e*ra-e +areer re,a-ee')erien+e in-o an uner*raua-e eu+a-ion b=
)ar-i+i)a-in* in ),anne su)erise 7or8
*ni#$ Mana6!!n"J .eans an e.),o=ee o -e "easure En-i-= 7o is a
.e.ber o -e o++u)a-iona, +a-e*or= o MQunior "ana*e.en- as e-er.ine usin* -e E.),o=.en-Equi-= Re*u,a-ions
L!a$n!$&1i,J .eans a 7or8base rou-e -o a qua,ii+a-ion! I- is a
7or8),a+e eu+a-ion an -rainin* )ro*ra..e+o.)risin* bo- s-ru+-ure )ra+-i+a, 7or8),a+e ?on
-eob@ e')erien+e an s-ru+-ure -eore-i+a, -rainin*
L!a$nin6 P$#6$a!&J .eans an= ,earnin* )ro*ra..e se- ou- in -e ,earnin*
#ro*ra..e "a-ri'
L!a$nin6 P$#6$a! Ma"$i'J .eans -e Learnin* #ro*ra..e "a-ri' anne'e as
Anne'e M300A in s-a-e.en- 300
L!<ia+! A#*n"J bears -e .eanin* as eine in -e $8i,,sDee,o).en- Leies A+- o 1999 as e-er.ine usin*
-e Four- $+eu,e -o -e In+o.e Ta' A+-
Mana6!!n" F!!&J .eans -e -o-a, E+ono.i+ In-eres- re+eie b= a
roaase O7nersi) $+e.e or ,a+8
)ar-i+i)an-s in an= =ear ,ess -e a.oun-s is-ribu-e or a)),ie -o benei+iaries an -e a.oun-s resere or
-e u-ure is-ribu-ion or a)),i+a-ion
Man%a"!% In<!&"!n"J .eans an= ines-.en-s .ae b= or -ou* an= -ir
)ar-= re*u,a-e b= $ou- Ari+an ,e*is,a-ion on bea,
o -e a+-ua, o7ner o -e uns )ursuan- -o a
.ana-e *ien b= -e o7ner -o a -ir )ar-= 7i+
.ana-e is *oerne b= -a- ,e*is,a-ion! $o.e
e'a.),es o o.es-i+ .ana-e ines-.en-s an -e
)or-ions o -ose ines-.en-s sube+- -o -e e'+,usion )rin+i),e are +on-aine in Anne'e 100A a--a+e -o
s-a-e.en- 100
M!a&*$!% En"i"J .eans an En-i-= as 7e,, as an or*an o s-a-e or )ub,i+
en-i-= sube+- -o .easure.en- uner -e Coes
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M!a&*$!!n" P!$i#%J .eans sube+- -o -e o,,o7in* -e inan+ia, )erio
o -e "easure En-i-=:?a@ Te inan+ia, )erio o a "easure En-i-= is a
)erio o 12 +onse+u-ie +a,enar .on-s/
?b@ ere o7eer -e "easure En-i-= a.ene i-s
inan+ia, re)or-in* )erio ro. one =ear -o ano-er -e inan+ia, )erio .a= or -a- )ar-i+u,ar =ear in
ques-ion be .ore or ,ess -an 12 +onse+u-ie.on-s! In su+ e'+e)-iona, +ases -e "easure
En-i-= .a= a- i-s is+re-ion e,e+- -o be .easure
or -e a.ene inan+ia, )erio ?o7eer .an=
.on-s i- .a= in+,ue@ or -e 12 .on-s enin* on-e ,as- a= o -e a.ene inan+ia, )erio! For
)ur)oses o e-er.inin* i-s +,assii+a-ion as an
E"E <$FI or Generi+ en-er)rise -e "easureEn-i-= .us- o7eer irres)e+-ie o -e e,e+-ion i-
e'er+ises aboe o so 7i- reeren+e -o -e 12.on-s enin* on -e ,as- a= o -e a.eneinan+ia, )erio/
?+@ "easure En-i-ies or 7i+ erii+a-ion is
require .a= no- be .easure or a "easure.en-#erio -a- as ene .ore -an 12 .on-s )rior -o
-e +o..en+e.en- o -e erii+a-ion -ereo/
?@ For E"Es an <$FIs -a- are a,,o7e -o .ere,=
.a8e an aiai- -e "easure.en- #erio .us- be-e 12 +onse+u-ie +a,enar .on-s -a-
i..eia-e,= )re+ees -e ,as- a= o -e .os-
re+en-,= +o.),e-e inan+ia, )erio!?e@ Te "easure.en- #erio is -e )erio oer 7i+
-e V$8i,,s Dee,o).en- VEn-er)rise an
$u)),ier Dee,o).en- an V$o+io E+ono.i+Dee,o).en- e,e.en-s .us- be .easure!
M!a&*$!!n" Da"!J .eans -e ,as- a= o -e "easure.en- #erio or su+
,a-er a-e a*ree u)on 7i- -e "easure En-i-= -a-is as +,ose as )ra+-i+a,,= )ossib,e -o -e
+o..en+e.en- o -e erii+a-ion or -o -e .a8in* o
-e aiai- 7i+ eer -e +ase .a= be! Te -er.VDa"! # M!a&*$!!n" as a +orres)onin*
.eanin*!
?Te VO7nersi) an V"ana*e.en- Con-ro,e,e.en-s .us- be .easure as a- -e "easure.en-
Da-e! For -e aoian+e o oub- -ese -7o
e,e.en-s .a= no- be .easure on ieren- a-es!@
90: Bac2 O3n!%J .eans an En-i-= in 7i+ :
?a@ ,a+8 #eo),e o, a- ,eas- 51 o -e e'er+isab,e
o-in* ri*-s as e-er.ine uner ini+a-or 2!1!1
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o Coe series 100
?b@ ,a+8 #eo),e o, a- ,eas- 51 o -e e+ono.i+in-eres- as e-er.ine uner ini+a-or 2!1!1 o
Coe series 100/ an
?+@ as earne a,, -e )oin-s or Ne- Ha,ue uner
s-a-e.en- 1000: Bac2 O3n!%J .eans an En-i-= in 7i+ :
?a@ ,a+8 #eo),e o, 100 o -e e'er+isab,e o-in*
ri*-s as e-er.ine uner ini+a-or 2!1!1 o Coe
series 100
?b@ ,a+8 #eo),e o, a- ,eas- 100 o -e e+ono.i+
in-eres- as e-er.ine uner ini+a-or 2!1!1 o
Coe series 100/ an
?+@ as earne a,, -e )oin-s or Ne- Ha,ue uner
s-a-e.en- 10090: Bac2 W#!n O3n!%J .eans an En-i-= in 7i+:
?a@ ,a+8 7o.en o, a- ,eas- 51 o -e e'er+isab,e
o-in* ri*-s as e-er.ine uner Coe series 100
?b@ ,a+8 7o.en o, a- ,eas- 51 o -e e+ono.i+in-eres- as e-er.ine uner Coe series 100/ an
?+@ as earne a,, -e )oin-s or Ne- Ha,ue uner
s-a-e.en- 100
5: Bac2 W#!n O3n!%J .eans an En-i-= in 7i+:
?a@ ,a+8 7o.en o, .ore -an 30 o -ee'er+isab,e o-in* ri*-s e-er.ine uner Coe
series 100
?b@ ,a+8 7o.en o, .ore -an 30 o -ee+ono.i+ in-eres- as e-er.ine uner Coe series
100/ an
?+@ as earnin* a,, -e )oin-s or Ne- Ha,ue uner
s-a-e.en- 100
Mi%%! Mana6!!n"J .eans an e.),o=ee o -e "easure En-i-= 7o is a
.e.ber o -e o++u)a-iona, +a-e*or= o M"i,e"ana*e.en- as e-er.ine usin* -e E.),o=.en-
Equi-= Re*u,a-ionsM*"ina"i#na B*&in!&&J .eans a "easure En-i-= 7i- a business in -e
Re)ub,i+ o $ou- Ari+an an e,se7ere 7i+
.ain-ains i-s in-erna-iona, eaquar-ers ou-sie -eRe)ub,i+! Te -er. VS#*"1 A$ican M*"ina"i#na
as a si.i,ar .eanin* e'+e)- -a- i- as i-s
in-erna-iona, eaquar-ers insie -e Re)ub,i+!
Na"i#na S2i& D!<!#,!n"
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S"$a"!6J .eans -e na-iona, s8i,,s ee,o).en- s-ra-e*=
reerre -o in se+-ion 5?1@?a@?ii@ o -e $8i,,sDee,o).en- A+-
N!" P$#i" A"!$ Ta'J .eans -e o)era-in* )roi- o a .easure en-i-= a-er -a'! I- in+or)ora-e bo- -e equi-= ( ,oss i*ures an
abnor.a, i-e.s bu- e'+,ue e'-ra orinar= i-e.s ase-er.ine b= -e In-erna-iona, Finan+ia, Re)or-in*$-anar ? I+RI, @ as a.ene ro. -i.e -o
-i.e!GAA#@ Genera,,= A++e)-e A++oun-in*
#ra+-i+es
N!" P$#i" B!#$! Ta'J .eans -e o)era-in* )roi- o a .easure en-i-= beore
-a'! I- in+or)ora-e bo- -e equi-= ( ,oss i*ures an
abnor.a, i-e.s bu- e'+,ue e'-ra orinar= i-e.s ase-er.ine -e In-erna-iona, Finan+ia, Re)or-in*
$-anar ? I+RI, @ as a.ene ro. -i.e -o -i.e!b=
?GAA#@ Genera,,= A++e)-e A++oun-in* #ra+-i+es
N!" Va*!J .eans -e )oin-s resu,-in* ro. -e a)),i+a-ion o )ara*ra) 4 o Anne'e 100 ?E@ o s-a-e.en- 100
N!3 En"!$,$i&!J .eans an ear,= s-a*e business 7i+ is si.i,ar -o a
s-ar-u)! o7eer an ear,= s-a*e business is -=)i+a,,=
3 =ears o, or ,ess!
N#n-P$#i" C#,anJ .eans a non)roi- +o.)an= as eine b= -e
Co.)anies A+- 1 o 200;! Te -er. a,so in+,ues$e+-ion 21 Co.)anies an Co.)anies Li.i-e b=
Guaran-ee as )er -e )reious Co.)anies A+-!
N#n-P$#i" O$6ani&a"i#nJ .eans a non)roi- or*anisa-ion re*is-ere uner -e
Non#roi- Or*anisa-ion A+- o 199
O$6an # S"a"!J as -e .eanin* assi*ne -o i- in -e #reeren-ia,#ro+ur.en- #o,i+= Fra.e7or8 A+- 5 o 2000!
O*"&#*$c!% La+#*$ E',!n%i"*$!J .eans an= e')eni-ure in+urre in:?a@ #ro+urin* -e seri+es o or ro. a ,abour bro8er/
an
?b@ #ro+urin* -e seri+es o an= )erson 7o re+eiean= re.unera-ion or -o 7o. an= re.unera-ion
a++rues be+ause o an= seri+es renere b= su+
)erson -o or bea, o a ,abour bro8er
Pa$"ici,an"J .eans a na-ura, )erson o,in* ri*-s o o7nersi) in
a "easure En-i-=
Pi<#"a R!,#$"J .eans a re)or- on V#roessiona, Ho+a-iona, Te+ni+a,an A+ae.i+ Learnin* )ro*ra..es -a- .ee- -e
+ri-i+a, nees or e+ono.i+ *ro7- an so+ia,ee,o).en- *enera,,= +o.binin* +ourse 7or8 a-
uniersi-ies uniersi-ies o -e+no,o*= an +o,,e*es
7i- s-ru+-ure ,earnin* a- 7or8
P$i#$i" S2i&J .eans Core Cri-i+a, an $+ar+e $8i,,s as 7e,, as an=
s8i,,s s)e+ii+a,,= ien-iie:
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?a@ In a $e+-or $8i,,s #,an issue b= -e De)ar-.en- o Labour o -e Re)ub,i+ o $ou- Ari+a
?b@ Na-iona, $8i,,s Dee,o).en- $-ra-e*= ,,,
?+@ Ne7 Gro7- #a-/ an
?@ Na-iona, Dee,o).en- #,anP$i<a"! E=*i" F*n%J .eans a -ir )ar-= un -rou* 7i+ ines-.en-s
are .ae on bea, o -e a+-ua, o7ner o -e uns
)ursuan- -o a .ana-e *ien b= -a- )erson -o -e
)ria-e equi-= un
P*+ic En"i"J as -e .eanin* assi*ne -o i- in -e #ub,i+ Finan+e
"ana*e.en- A+- no!1 o 1999
P*+ic B!n!i" O$6ani&a"i#nJ .eans an en-i-= as eine in se+-ion 30 o -e In+o.e
Ta' A+- o 1962
;*aiin6 B!n!icia$ En"i"i!&J .eans re+i)ien-s o <ua,i=in* En-er)rise an
$u)),ier Dee,o).en- Con-ribu-ions
;*aiin6 En"!$,$i&! an% S*,,i!$ .eans a +o,,e+-ie -er. es+ribin* En-er)rise D!<!#,!n" C#n"$i+*"i#n&J Dee,o).en- an $u)),ier Dee,o).en-
Con-ribu-ions -ar*e-in* E"Es an <$FIs 7i+ are
a- ,eas- 51 ,a+8 O7ne or a- ,eas- 51 ,a+8o.en O7ne
;*aiin6 Sa Financia In&"i"*"i#n J .eans an En-i-= -a- qua,iies or .easure.en- uner -e <ua,i=in* $.a,, Finan+ia, Ins-i-u-ion s+ore+ar
7i- a -o-a, annua, Reenue o .ore -an R10 .i,,ion
bu- ,ess -an R50 .i,,ion! Te abbreia-ion V<$FIas a +orres)onin* .eanin*!
;*aiin6 S#ci#-Ec#n#ic is a +o,,e+-ie -er. or $o+ioE+ono.i+ #roe+-
C#n"$i+*"i#n&J Con-ribu-ions an $o+ioE+ono.i+ Dee,o).en-Con-ribu-ions
;*aiin6 T$an&ac"i#nJ .eans a sa,e o business a,uab,e business asse-s or sares -a- resu,-s in -e +rea-ion o s)e+ia,ise s8i,,s
or )rou+-ie +a)a+i-= -o ,a+8 #eo),e
R!a"!% En"!$,$i&!J .eans an En-i-= +on-ro,,e b= a "easure En-i-=
7e-er ire+-,= or inire+- +on-ro, oer -a-
"easure En-i-= or -e i..eia-e a.i,= o -osena-ura, )ersons
R!<!n*!J as -e .eanin* as+ribe -o i- in -e In-erna-iona,Finan+ia, Re)or-in* $-anar ? I+RI," International
$ccounting ,tandard 1@ as a.ene ro. -i.e -o-i.e!
Ri61"& # O3n!$&1i,J is a +o,,e+-ie -er. or -e ri*- o E+ono.i+ In-eres-
an -e ri*- -o E'er+isab,e Ho-in* Ri*-s
Sca$c! S2i&J are -ose s8i,,s ien-iie as bein* s+ar+e b= an=
$ETA
S!c"#$ C#%!J .eans a +oe in series 003 7i+ is a)),i+ab,e -o a
)ar-i+u,ar se+-or
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S!!$J .eans -e En-i-= or -e )erson +on+,uin* a
<ua,i=in* Transa+-ion 7i- -e Asso+ia-e En-er)rise
S!ni#$ Mana6!!n"J .eans an e.),o=ee o -e "easure En-i-= 7o is a
.e.ber o -e o++u)a-iona, +a-e*or= o M$enior "ana*e.en- as e-er.ine usin* -e E.),o=.en-
Equi-= Re*u,a-ionsS2i& D!<!#,!n" E',!n%i"*$!J +o.)rises -e ,e*i-i.a-e -rainin* e')enses -a- a
"easure En-i-= in+urs on s8i,,s ee,o).en-! I-
e'+,ues -e s8i,,s ee,o).en- ,e= )a=ab,e b= -e"easure En-i-= uner -e $8i,,s Dee,o).en- Leies
A+-
S#ci#-Ec#n#ic D!<!#,!n" .eans .one-ar= or non.one-ar= +on-ribu-ion C#n"$i+*"i#n&J I.),e.en-e or +o..uni-ies na-ura, )ersons or
*rou)s o na-ura, )ersons 7ere a- ,eas- 5 o -e
benei+iaries are ,a+8 )eo),e! Te obe+-ie o $o+ioE+ono.i+ Dee,o).en- Con-ribu-ions is -e
)ro.o-ion o sus-ainab,e a++ess or -e benei+iaries-o -e e+ono.=! $o+ioE+ono.i+ Dee,o).en-Con-ribu-ions +o..on,= -a8e -e o,,o7in* or.s:
?a@ Dee,o).en- )ro*ra..es or 7o.en =ou-
)eo),e 7i- isabi,i-ies )eo),e ,iin* in rura,areas
?b@ $u))or- o ea,-+are an IH(AID$ )ro*ra..es
?+@ $u))or- or eu+a-ion )ro*ra..es resour+es an.a-eria,s a- )ri.ar= se+onar= an -er-iar=
eu+a-ion ,ee, as 7e,, as bursaries an
s+o,arsi)s/?@ Co..uni-= -rainin* s8i,,s ee,o).en- or
une.),o=e )eo),e an au,- basi+ eu+a-ion an
-rainin*/ or ?e@ $u))or- o ar-s +u,-ura, or s)or-in* ee,o).en-
)ro*ra..es/
S#ci#-Ec#n#ic P$#7!c" .eans .one-ar= or non.one-ar= +on-ribu-ions
C#n"$i+*"i#n&J +arrie ou- or -e benei- o an= )roe+-s a))roe or
-is )ur)ose b= an= or*an o s-a-e or se+-ors in+,uin*
7i-ou- ,i.i-a-ion:
?a@ #roe+-s o+usin* on eniron.en-a, +onsera-iona7areness eu+a-ion an 7as-e .ana*e.en- an?b@ #roe+-s -ar*e-in* inras-ru+-ura, ee,o).en- or
re+ons-ru+-ion in uneree,o)e areas/ rura,
+o..uni-ies or *eo*ra)i+a, areas ien-iie in
-e *oern.en-s in-e*ra-e sus-ainab,e rura,ee,o).en- or urban rene7a, )ro*ra..es
?+@ Ne7 )roe+-s )ro.o-in* benei+ia-ion
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S"an%a$% Va*a"i#n M!"1#%J .eans a s-anar a,ua-ion .e-o or an asse- an
E+ono.i+ In-eres- or an= o-er ins-ru.en- or ri*-re,ean- -o .easure.en- uner Coe 100 uner-a8en
usin* nor.a, a,ua-ion .e-os -a- re)resen-
s-anar .ar8e- )ra+-i+e
S"a$"-*, En"!$,$i&!J .eans a re+en-,= or.e or in+or)ora-e En-i-= -a-as been in o)era-ion or ,ess -an 1 =ear! An en-i-=-a- 7as or.e an in+or)ora-e so.e -i.e a*o bu-
7i+ as been or.an- ?nono)era-iona,@ 7i,,
qua,i= as a s-ar-u) en-e)rise or -e irs- =ear a-er i-
+o..en+es o)era-ions! A s-ar-u) en-er)rise oes no-in+,ue an= ne7,= +ons-i-u-e en-er)rise 7i+ is
.ere,= a +on-inua-ion o a )ree'is-in* en-er)rise!
S*+&i%ia$J as a .eanin* eine in se+-ion 1?3@ o -e
Co.)anies A+-/
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MS*i"a+! E<i%!nc! #$ D#c*!n"a"i#n .eans no-7i-s-anin* an= )roisions -o -e +on-rar=
in -e Herii+a-ion "anua, ?GaPe--e 31255 1; Qu,=200;@ as a.ene ro. -i.e -o -i.e eien+e or
o+u.en-a-ion -a- in+,ues 7i-ou- ,i.i-in* -e
*enera,i-= o -e -er.:
?a@ re)resen-a-ions b= -e "easure En-i-= re*arin*i-s EE $-a-us -a- +an be subs-an-ia-e ou- o
aui-e or reie7e inan+ia, s-a-e.en-s anine)enen- Co.)e-en- #ersons re)or- o-er
-ir )ar-= +onir.a-ion or 7ere a))ro)ria-e
ain* re*ar -o aai,ab,e eien+e in -e
absen+e o -ir )ar-= +onir.a-ion are)resen-a-ion b= .ana*e.en- o -e "easure
En-i-= a--es-in* -o -e a+-s!
?i@ a erii+a-ion )roessiona, +onsierin*aore.en-ione eien+e or
o+u.en-a-ion in su))or- o an=re)resen-a-ion .us- a)),= )roessiona, u*e.en- in ea,ua-in* -e
a))ro)ria-eness -ereo/ an
?ii@ +anno- iso,e i-se, o i-s res)onsibi,i-= -o+onu+- a -ourou* erii+a-ion b=
re,=in* on,= on -is -=)e o eien+e or
o+u.en-a-ion 7ere in a+- o-er
eien+e as is require b= -e Herii+ai-on"anua, is reai,= aai,ab,e!
?iii@ In ea,ua-in* -e a))ro)ria-enes o
eien+e i- .us- a+iee a reasonab,e ,ee,o +o.or- 7i- res)e+- -o an= +on+,usion
i- rea+es!
?b@ in -e +ase o 51 or 100 ,a+8 O7neE'e.)-e "i+roEn-er)rise an 51 or 100
,a+8 O7ne <ua,i=in* $.a,, Finan+ia,
Ins-i-u-ion an aiai- a--es-in* -o i-s EE
s-a-us! Tis is -e .ini.u. ,ee, o eien+erequire or -ese en-i-ies!
?+@ in -e +ase o roaase O7nersi) $+e.es
E.),o=ee $are O7nersi) #ro*ra..es anTrus-s Herii+a-ion #roesiona,s .a= re,= on
in-erie7s 7i- iu+iaries ?7ere aai,ab,e
ine)enen- iu+iaries@ o -ese s+e.es ins-eao -e iniiua, #ar-i+i)an-s o -ese s+e.es -o
a+iee a reasonab,e ,ee, o +o.or- 7i- re*ar
-o -e Ri*-s o O7nersi) -a- ,o7 -rou*-e.!
S*,,i!$J .eans an= su)),ier or seri+e )roier -o a "easure
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En-i-= i an= )or-ion o -e su)),= or seri+e )roision
a,,s 7i-in -e eini-ion o To-a, "easure#ro+ure.en- $)en/
S*,,i!$ D!<!#,!n" .eans .one-ar= or non.one-ar= +on-ribu-ions as C#n"$i+*"i#n&J )er $-a-e.en- 400 rea -o*e-er 7i- Anne'e 400?@
+arrie ou- or -e benei- o E.)o7erin* $u)),iers7o are $u)),iers o -e "easure En-i-= 7i- -eobe+-ie o +on-ribu-in* -o -e ee,o).en-
sus-ainabi,i-= an inan+ia, an o)era-iona,
ine)enen+e o -ose E.)o7erin* $u)),iers/
Ta$6!"J .eans -e -ar*e-s or -e arious E,e.en-s in -e
Generi+ an <$FI $+ore+ar/
"1! Ac"J .eans -e roaase ,a+8 E+ono.i+
E.)o7er.en- A+- 53 o 2003
"1! C#%!&J .eans -e Coes o Goo #ra+-i+e in+,uin* a,,
s-a-e.en-s as issue uner se+-ion 9 o -e A+-/
"1! G!n!$ic Sc#$!ca$%J .eans -e ba,an+e EE s+ore+ar as +on-ainein s-a-e.en- 000/
"1! PFMAJ .eans -e #ub,i+ Finan+ia, "ana*e.en- A+- 1 o 1999 as a.ene/
"1! ;SFI Sc#$!ca$%J .eans -e <$FI s+ore+ar reerre -o in s-a-e.en-000/
"1! S2i& D!<!#,!n" Ac"J .eans -e $8i,,s Dee,o).en- A+- o 199;
"1! S2i& D!<!#,!n" L!<i!& Ac"J .eans -e $8i,,s Dee,o).en- Leies A+- o 1999
"1! S"$a"!6 D#c*!n"J .eans -e o+u.en- en-i-,e M$ou- Ari+as
E+ono.i+ Transor.a-ion > A $-ra-e*= or roa
ase ,a+8 E+ono.i+ E.)o7er.en- )ub,ise b=
-e e)ar-.en- o -rae an inus-r= in "ar+ 2003 asa.ene or subs-i-u-e uner se+-ion 11 o -e A+-/
T1i$% Pa$" Ri61"&J .eans -ir )ar-= ,e*a, or +o..er+ia, ri*-s -a-res-ri+- 7i-o, or eer an= benei- asso+ia-e 7i-
o7nersi) o an= Equi-= Ins-ru.en-! Tir )ar-=
ri*-s in+,ue on,= -ose ri*-s:
?a@ Crea-e a*ains- a b,a+8 )ar-i+i)an- -o se+ure or a
,ener re)a=.en- o a ,oan aan+e -o -a-#ar-i+i)an- or inan+in* -eir )ur+ase o -eir
equi-= ins-ru.en- in -e "easure En-i-=/
?b@ e, a*ains- a uris-i+ )erson or -rus- -a- is in -e+ain o o7nersi) be-7een -e "easure En-i-=an -a- -e een-ua, b,a+8 )ar-i+i)an- serin* -e
sa.e )ur)ose .en-ione in ?a@ aboe!
T#"a La+#*$ C#&"J .eans -e -o-a, a.oun- o re.unera-ion )ai b= an
En-i-= -o i-s e.),o=ees e-er.ine usin* se+-ion 3?4@
o -e $8i,,s Dee,o).en- Leies A+- o 1999 an -eFor- $+eu,e o -e In+o.e Ta' A+- o 1962/
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T$an&#$a"i#n C1a$"!$&J .eans -e se+-ora, -ransor.a-ion +ar-ers reerre -o
in se+-ion 12 o -e A+-!
Un!,#!% L!a$n!$J .eans a ,earner -a- 7as no- in -e e.),o=.en- o -e
e.),o=er )ar-= -o -e Learnersi) A))ren-i+esi) or In-ernsi) +on+erne 7en -e Learnersi)
A))ren-i+esi) or In-ernsi) +o..en+e! Tee.),o=er an ,earner .us- -ereore en-er in-o a+on-ra+- o e.),o=.en-! For -e aoian+e o oub-
-e e.),o=er is no- ne+essari,= -e "easure En-i-=!
Reer -o -e $8i,,s Dee,o).en- A+-!
Uninc#$,#$a"!% #in" V!n"*$!J .eans a oin- en-ure be-7een -7o or .ore "easure
En-i-ies ee+-e b= a*ree.en- 7i-ou- in+or)ora-ion/
V#"in6 Ri61"J .eans a o-in* ri*- a--a+in* -o an Equi-= Ins-ru.en-
o7ne b= or e, or a )ar-i+i)an- .easure usin* -e
F,o7 -rou* #rin+i),e or -e Con-ro, #rin+i),e/
W!i61"in6J .eans -e 7ei*-in*s a)),ie -o arious E,e.en-s in
-e Generi+ $+ore+ar an <$FI $+ore+ar/W#$2,ac! S2i& PanJ .eans -e ),an o a "easure En-i-= a))roe b= -e
re,ean- $ETA!