Minister Rob Davies gazettes the Amended Financial Sector Code

The Minister of Trade and Industry, Dr Rob Davies says that the Amended Financial Sector Code (“FSC”) is now a legally binding document on all entities and organisations operating in the financial sector. This follows the gazetting of the FSC on Friday, 1st December 2017, and subsequent endorsement by Cabinet.

Minister Davies says that the financial sector in South Africa manages over R8 trillion assets, contributing 21.6 per cent to the gross domestic product of the economy annually and therefore transformation of the sector is vital for the country. “Transformation of this sector is key because it is the life blood for all other sectors of the economy. The process to develop a charter emanated from the 2002 NEDLAC Summit where stakeholders committed to a sector charter. The Amended FSC has unique features and deviations that intent to address transformation peculiarities that exist in the sector.”

This Amended FSC applies to any natural or juristic person conducting a business, trade or profession in the South African financial sector including, but not limited to, the following:

1. Banking;
2. Long-term insurance;
3. Short-term insurance;
4. Re-insurance;
5. Retirement fund administration;
6. The management of collective investment scheme assets;
7. Financial services intermediation and brokerage;
8. Public entities involved in the financial sector e.g. DBSA, Land Bank;
9. Asset management, consulting and administration;
10. Private equity, venture capitalist and impact investors;
11. Management of investments on behalf of the public, including, but not limited to, private equity, members of any exchange licensed to trade equities or financial instruments in South Africa and entities listed as part of the financial index of a licensed exchange;
12. Underwriting management agents; and
13. Industry Trade Associations operating in the sector.

This Amended FSC does not apply to:

1. Natural or juristic persons who do not have trading operations in the Republic of South Africa;
2. The trading operations of natural or juristic persons outside the Republic of South Africa; and
3. Managers of investments on behalf of the public who are not subject to regulation by the Financial Services Board, such as lawyers who hold money in intermediate trusts

CLICK HERE to access the FSC