Reminder to financial entities regarding 2017/18 annual B-BBEE reporting to FSTC
Publish date: 18 April 2019
Issue Number: 67
Diary: CompliNEWS
Category: Transformation
Financial Sector Transformation Council (FSTC)
As per the Amended Financial Services Sector Code, Gazette 41287 of 1 December 2017, in terms of s 9(1) of the Broad-Based Black Economic Empowerment Act 53 of 2003, as amended by the B-BBEE Act 46 of 2013, entities operating within the financial sector in South Africa are reminded that they are required to submit verified reports to the Financial Sector Transformation Council (the Council) for purposes of reporting on B-BBEE compliance in the sector for the period 1 December 2017 to 30 November 2018.
Who should report?
Statement 000 of FS 000, paragraph 3.1 of the Code states the Amended FSC as applicable to any natural or juristic person conducting a business, trade or profession in the South African financial sector.
What is required?
Entities qualifying as generic, ie, those with turnover greater than R50 million a year, are required to submit details of their Verification Agent (VA) and a confirmation letter addressed to both the Council and the VA, specifying that they are aware that the VA is required to submit the full and final verification report and any other additional information that may be required, to the Council; and that the VA is permitted to provide such information. The template for the authorisation letter can be made available by the Council upon request.
Entities with turnover under R10 million that are classified as EME, and those with turnover between R10 million and R50 million that qualify as QSEs are required to submit a sworn affidavit. The template for affidavit is available on the Council’s website on this link: https://fstc.org.za/affidavits.php. (EMEs should use Affidavit 1 and QSEs should use Affidavit 2.)
Note: The final deadline for submissions was 31 March 2019.
Entities are also reminded that, in accordance with provisions of the amended FSC, the Council reserves the right to name institutions that do not submit reports. Furthermore, all entities that do not submit the required reports to the Council will automatically be discounted by one level down in the next rating that follows non-submission, with effect from 1 December 2018 to 30 November 2019.
In compliance with the requirements of para 8.4, entities that have not yet submitted their reports are requested to do so urgently.
For any further information, please contact the Council by emailing info@fstc.org.za
