From CompliNEWS | Financial Service Intelligence Watch
FSTC issues Reporting Notice 2 of 2024: Financial sector entities required to submit B-BBEE compliance reports
The Financial Sector Transformation Council (FSTC) has released Reporting Notice 2 of 2024, setting out the requirements for the submission of Broad-Based Black Economic Empowerment (B-BBEE) compliance reports for the period 1 December 2023 to 31 December 2024.
This reporting process is a mandatory requirement for all entities operating in the financial sector, reinforcing the industry’s commitment to transformation and economic inclusion.
Submission Deadline and Process
Financial institutions must submit their B-BBEE compliance reports to the FSTC by 31 March 2025 (close of business).
Submission Method: Reports should be emailed to reporting@fstc.org.za with the subject line:
Who Needs to Submit and What is Required?
Entities are classified into three categories based on annual revenue, each with specific reporting requirements:
1. Exempted Micro Enterprises (EMEs) (Revenue up to R10 million per annum)
- Must submit an EME sworn affidavit confirming their B-BBEE status.
2. Qualifying Small Financial Institutions (QSFIs) (Revenue between R10 million and R50 million per annum)
- Must submit a QSFI sworn affidavit.
- Verification certificate required if the QSFI does not have at least 51% Black ownership.
3. Generic Enterprises (GEs) (Revenue of R50 million or more per annum)
- Must submit a B-BBEE verified certificate.
- Must also submit a B-BBEE verified scorecard detailing their compliance levels.
Why is This Important?
The FSTC’s B-BBEE compliance reporting framework plays a critical role in promoting transformation, equity, and empowerment within the financial sector. These reports provide transparency on progress towards economic inclusivity and help assess the industry’s overall compliance with South Africa’s B-BBEE Act.
Failure to comply with reporting obligations may affect an entity’s B-BBEE rating and regulatory standing, potentially impacting business opportunities and government engagements.
Need Assistance?
For any queries regarding the submission process or required documents, financial sector entities can contact the FSTC via:
- Email: reporting@fstc.org.za
- Telephone: 087 062 5950.