Financial Sector Charter

The Financial Sector Charter (FSC) was signed in 2003 by the Minister of Finance as well as nine trade associations that represented the financial sector at that time.  Currently ASISA represents its members on the FSC Council Board and the Johannesburg Stock Exchange and also in consultation with the South African Insurance Association (SAIA) acts on behalf of the reinsurers.

Following the signing of the FSC, it was gazetted under section 12 of the Broad-Based Black Economic Empowerment (BBBEE) Act 53 of 2003.  The FSC Council Board was formed with representatives from organised labour, community, government (Department of Trade and Industry and National Treasury), Association of Black Securities and Investment Professionals (ABSIP), as well as the various trade associations.  The board represents the primary governance mechanism for empowerment in the sector and is supported by a secretariat.

The FSC came into effect in January 2004.  At the time it was a landmark achievement for the financial sector as this sector was amongst the first economic sectors to agree on a voluntary code for transformation.

In 2007, the DTI gazetted the generic code (DTI Codes of Practice) under section 9 of the BBBEE Act.  Section 9 Codes have compulsory application to government departments while section 12 Codes have voluntary application.

A process of alignment was initiated soon after the gazetting of the generic code to align the current FSC to the provisions of the DTI Code, in order to gazette a Financial Sector Code under section 9.

Included in the code is a provision for making products and services available to low income earners.  Such products and services need to meet standards aligned to being low cost, efficient, simple and accessible to consumers.

ASISA and its members have designed two such products that meet these fundamental needs,  make it easier for consumers to look after their money and improve their lives in meaningful ways.  These are:

• The Fundisa Fund, a low cost, education savings plan which includes a bonus to incentivise investors to save for a learner’s tertiary education.

• Zimele branded products, which aim to help low income earners easily identify life insurance products that are appropriate and offer fair value.