Financial Services Charter Code

Introduction To The Financial Sector Charter

The Financial Sector Charter came into effect in January 2004 as a transformation policy based on the terms of the Broad-based Black Economic Empowerment [BBBEE] Act (53 of 2003).

The Financial Sector Charter (FSC) is a voluntary agreement by all National Economic Development and Labour Council (NEDLAC), a multilateral social dialogue forum on social, economic and labour policy, members to promote social and economic integration and access to the financial services sector.

The Financial Sector Charter commits its participants to 'actively promoting a transformed, vibrant, and globally competitive financial sector that reflects the demographics of South Africa, and contributes to the establishment of an equitable society by effectively providing accessible financial services to black people and by directing investment into targeted sectors of the economy'. 

Background To The Financial Sector Charter

Background To The Financial Sector Charte

In 2002, at the Financial Sector summit, NEDLAC negotiated the Financial Sector Summit Agreement to transform the financial sector. NEDLAC partners - represented by government, organised business, organised labour and organised community constituencies - committed to the development of Black Economic Empowerment [BEE] Charter to remove inequalities and create a robust financial services sector.   

On 1 January 2004, the Financial Sector Charter came into effect. The FSC was the first voluntary BEE Charter that represented commitment from an entire sector of the economy to transform the financial services industry in line with the BBBEE Act to reduce inequalities that prevent people and South Africa from reaching its potential.

In 2007, the dti gazetted generic codes under section 9 of the B-BBEE Act thus giving the codes a superior legal status to that of the charters gazetted under section 12. From 2007 to 2011, the Charter constituencies were engaged in discussion to align the FSC to the Codes with the aim of gazetting the FSC under sect.1 of the Act to have the same legal status as the Codes. In December 2011 phase 1 of the draft sector code was gazetted for public comment. In November 2012 a Financial Sector Code was gazetted.

 

Download Full Act

Please note that is only as a brief summary of the main provision of the Code and should not be relied upon as a legal document. There are many other provisions and exemptions under the Code. For more detailed information and the full Code please download the Code of Banking Practice.

Legislation Info

Menu
Menu
© The Banking Association South Africa 2017