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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



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



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



!'', 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



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



$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



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-

)*



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


$u)),ier Dee,o).en- or .easure en-er)rises

!'!,"!% ro. E.)o7er.en- Finan+in*

402 Coe $eriesF$400


$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).enan 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

)* ;



;03

Coe $eries

F$;00

Te *enera, )rin+i),es or .easurin* $8i,,s

Dee,o).en- or <$FIs

;04

Coe $eries

F$;00


$u)),ier Dee,o).en- or <$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



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

)* 10



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

)* 11



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:

)* 12



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

)* 13



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

)* 14



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:

)* 15



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



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



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,

)* 1;



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 $inancial .nstitutions +-S$.,

)* 19



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



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



>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



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



?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



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



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

)* 26



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

)* 2



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


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;



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



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



"% 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

)*! 31



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

)*! 32



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:

)*! 33



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!

)*! 34



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

)*! 35



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

)*! 36



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

)*! 3



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

)*! 3;



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

)*! 39



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

)*! 40



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

)*! 41



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

)*! 42



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-.enin -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-.enin -e ra-io -a- -e e)osi-or uns

-o o7n reseres

)*! 43



Annexe FS100(B)

RULES ON CERTAIN TYPES OF ENTERPRISES

)*! 44



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

)*! 45



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

)*! 46



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

)*! 4



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!

)*! 4;



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:

)*! 49



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

)*! 50



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)anin #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

)*! 51



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)anin #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

)*! 52



"#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

)*! 53



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!

54



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.enin 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.enan 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/

55



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 .usin+,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.enin -e -ir =ear a-er -e -ransa+-ion!

56



$%%E&E 1!2'$(

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;



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,

59



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

60



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 .usin+,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!

61



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.enin 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.enin 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!

62



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-.enin 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:


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


Equia,en-s uner Coe series F$600!

5!4 Ines-.enin A++ess -o Finan+ia, $eri+es:


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


63



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!

64



> 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,enan

-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


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


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

65



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


+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:

66



A (C ' ?1(?5 or 25 ' D@ ' 13 or 4!33

ere


+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!


MANAGEMENT CONTROL ELEMENT OF BROAD-BASED BLACK ECONOMIC

EMPOWERMENT

STATEMENT FS4. THE GENERAL PRINCIPLES FOR MEASURING

MANAGEMENT CONTROL


Ac" # 405

A$$an6!!n" # "1i& &"a"!!n"

Pa$a S*+7!c" Pa6!

6



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;



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,!

69



"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



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.enan $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

1



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



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



"#%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@!

4



")%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

× DC




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



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-



"<%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


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


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


0!5 1!50

4>5

*ni#$ Mana6!!n" 4

2!3!1


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


Learnin* #ro*ra..e "a-ri' or +ac2 3#!n 7*ni#$ ana6!$& as a


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


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

;



"/%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)oran #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).enan +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

9



"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 none+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

;0



#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 ?@!

;1



#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

;2



)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

;3



#"%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

× DC



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


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

;5



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).enan $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).enan $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!

;6



##%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

;



#)%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).enan $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).enan $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).enan 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!

;;



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).enan 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!

;9



#<%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

90



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

91



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/

92



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.enan 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:

93



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!

94



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

95



#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

96



CONTRIBUTIONS

Te o,,o7in* is a none'aus-ie ,is- o <ua,i=in* En-er)rise Dee,o).enan $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:

9



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:

9;



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



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

100



+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@

101



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

× DC



ANNEXE FS@ (B)

Anne'e 400 > En-er)rise Dee,o).enan $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).enan $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).enan$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).enan $u)),ier

Dee,o).en- ?in+,uin* )eo),e

a))oin-e in En-er)riseDee,o).enan $u)),ier

Dee,o).en-@


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).enan $u)),ierDee,o).en-

Ou-s-anin* Loan A.oun- 0

$-anar Loan -o En-er)rise

Dee,o).enan $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).enan

$u)),ier Dee,o).en-enei+iaries

Ines-.en- A.oun- 0


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

103



C#n"$i+*"i#n& a%! in "1! #$ # 1*an $!&#*$c! ca,aci"

#roessiona, seri+es renere

a- no +os- an su))or-in*


Co..er+ia, our,= ra-e o

)roessiona,

60

#roessiona, seri+es renerea- is+oun- an su))or-in*

En-er)rise Dee,o).enan

$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

104



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

× DC



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


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

106




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

10



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).enan 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

10;



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).enan 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

109



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

110



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-!

111



)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).ense+-or s)e+ii+

ini-ia-ies or <ua,i=in* $o+ioE+ono.i+ Con-ribu-ions


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).ense+-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).ense+-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).ense+-or s)e+ii+

ini-ia-ies or <ua,i=in* $o+io

"on-,= sa,ar= iie b=160

;0

112



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).enan Consu.er Eu+a-ion s+ore+ar in s-a-e.en- 500

113

A =B

× DC



REVISED FINANCIAL SECTOR CODE SERIES FS

STATEMENT FS.

THE MEASUREMENT OF THE EMPOWERMENT FINANCING ELEMENT


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

114




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

115



2!5!2

For +rea-in* one or .ore obs ire+-,= as a

resu,- o $u)),ier Dee,o).enan

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

116



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


A ?(C@ ' D

ere:


B is -e a+-ua, ba,an+e see- e')osure a- .easure.en- a-e

11



C is -e -ar*e- an


# 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


A ?(C@ ' D

ere:


B is -e a+-ua, ba,an+e see- e')osure a- .easure.en- a-e

C is -e -ar*e- an


A R1!2bn(R3bn ' 12

11;



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:

119



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

120



<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

121



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

122



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

123



<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

124



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

125



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!



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

12



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

12;



<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

129



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

130



<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

131



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).enan $u)),ier

Dee,o).en- Con-ribu-ions:

132



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


0?preferential credit terms 6ranted by a Measured Entity to ualifyin6


0+preferential terms 6ranted by a Measured Entity in respect of its supply of


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:

133



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




03 the creation or development of capacity and e=pertise for ualifyin6





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



01 provision by the Measured Entity, of preferential credit facilities to a

ualifyin6 -eneficiary Entity0 E=amples of such contributions include/ithout limitation:

134



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



0? provision of trainin6 or mentorin6 to ualifyin6 -eneficiary Entities by


135



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

136



0+ Trainin6 or mentorin6 provided as per 0> and 0? above may not be

double counted under the .ills Development scorecard once claimed as


versa0

03' the maintenance by the Measured Entity of an Enterprise Development



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



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).enan $u)),ier

Dee,o).en- Con-ribu-ions:

13



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


20preferential credit terms 6ranted by a Measured Entity to ualifyin6


202preferential terms 6ranted by a Measured Entity in respect of its supply of


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:

13;



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




20+the creation or development of capacity and e=pertise for ualifyin6





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



203 provision by the Measured Entity, of preferential credit facilities to a

ualifyin6 -eneficiary Entity0 E=amples of such contributions include

/ithout limitation:

139



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



20 provision of trainin6 or mentorin6 to ualifyin6 -eneficiary Entities by


140



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


versa0

20> the maintenance by the Measured Entity of an Enterprise Development



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



20?0 for the avoidance of doubt such contributions are re6arded as havin6been initiated and implemented once they become payable to the thirdparty4

141



<#%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


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

142




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


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;

143



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

144



<)%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

145



<<%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)

146



<<%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

14



<<%"%" 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

14;



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

149



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

150



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

151




STATEMENT FS84


BROAD-BASED BEE AS IT RELATES TO LONG-TERM ASSURERS


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

152



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

153



<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

154



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)

155



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

156




STATEMENT FS85.


BROAD-BASED BEE AS IT RELATES TO SHORT TERM INSURERS


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

15




&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

15;



<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

159



<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

160



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

161



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

162



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



/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''

164



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

165



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).enan $u)),ier Dee,o).enan $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).enan $u)),ier Dee,o).enan $o+io

166



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/

16



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+-

16;



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.enin -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-=

169



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

10



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

11



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

$u)),ier Dee,o).enan V$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

12



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


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


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"

13



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:

14



?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).enan $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

15



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.enan?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

16



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+-/

1



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.enin 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

1;



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"$a"!6 D#c*!n"J .eans -e o+u.enen-i-,e M$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.enin -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/

19



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 none+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!

2015-revised-fsc-codes-13-03-2015 _+117822

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