From CompliNEWS | Financial Service Intelligence Watch
FSCA and B-BBEE Commission forge a path towards economic transformation with new MoU
In a significant move towards fostering economic transformation in South Africa, the Financial Sector Conduct Authority (FSCA) and the Broad-Based Black Economic Empowerment Commission (B-BBEE Commission) have solidified their collaboration with a Memorandum of Understanding (MoU). Announced on Tuesday afternoon, this strategic partnership underscores a mutual commitment to advancing the transformation of the financial sector and, by extension, the South African economy at large.
Acknowledging the pivotal role it plays in financial sector transformation, the FSCA has aligned its objectives with the principles set forth in the Broad-Based Black Economic Empowerment (B-BBEE) Act, No. 53 of 2003. In March 2023, it took a concrete step by publishing its final Strategy for Promoting Financial Sector Transformation. This blueprint delineates the FSCA’s approach to fostering change within the sector, underpinned by existing legislative frameworks like the B-BBEE Act and the Financial Sector Code. The strategy eagerly anticipates the enactment of the Conduct of Financial Institutions (COFI) Bill, which promises to endow the FSCA with enhanced powers to effect transformation.
Unathi Kamlana, the FSCA Commissioner, highlighted the importance of the MoU with the B-BBEE Commission as a cornerstone of their transformation strategy. “Through strategic partnerships with key entities such as the B-BBEE Commission, we aim to make a positive impact on the nation’s transformation agenda. The financial sector is integral to our country’s economic metamorphosis, addressing past injustices and bridging the inequality gap. We are dedicated to finding lasting transformation solutions that will have a tangible, enduring effect,” Kamlana remarked.
Echoing these sentiments, Tshediso Matona, Commissioner of the B-BBEE Commission, emphasised the critical nature of transforming the financial sector to achieve the goals of the B-BBEE Act. “Financial support is foundational to a thriving economy, central to empowering economic endeavors, fostering enterprise development, and mitigating unemployment, poverty, and inequality. The Financial Sector Code notably prioritises financing for black enterprises. This MoU, alongside the objectives of the FSCA’s Transformation Strategy, will facilitate oversight of the Financial Sector Code’s application, marking a step forward in our shared pursuit of economic empowerment,” stated Matona.
This collaboration is poised to unearth and address existing gaps in the collection and analysis of B-BBEE implementation data within the financial sector—a concern long held by the B-BBEE Commission. The partnership envisaged by the MoU is set to enhance the exchange of experiences and B-BBEE-related data, thereby identifying common challenges and opportunities for enhancing compliance and promoting economic transformation. Both the FSCA and the B-BBEE Commission concur that adhering to the B-BBEE Act is fundamental to exemplary corporate governance across both private and public sectors, including the financial industry. As such, enhancing compliance, governance, accountability, and transparency will be a focal point of their joint efforts.