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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Industry Charters

Chartered Accountancy Charter

Section B: Framework

7. Application and Implementation of the Sector Code


7.1        Application


1. This Sector Code applies to the CA profession in South Africa and therefore the South African firms making up the CA sector. The provisions specific to the CA sector Qualifying Small Enterprises (QSEs) are set out in paragraph 13.2. Unless expressly stated otherwise, the provisions stated here will apply to both general constituents of the CA sector and QSE constituents.


2. The Sector Code will be effective from the date it is approved as a Sector Code.


3. Five years after the date on which the Sector Code is published in the Government Gazette, the Charter Council will undertake a comprehensive mid-term review and make decisions regarding the implementation of the Sector Code in its second term so as to achieve its ten-year targets. While no mid-term targets have been set, the mid-term revision will entail an extensive overview of achievements and if necessary, re-assessment of activities that need to be undertaken to ensure that the ultimate targets are indeed met. Results of the final examination written in the year 2010 will be taken into account even if these results are only available the following year.


4. While this Sector Code is effective up to 31 December 2016, the parties to this Sector Code agree that the principles contained in the Sector Code may be relevant beyond 31 December 2016, which is to be determined by the Charter Council prior to this date.


5. All the provisions of this Sector Code are to be achieved in a manner consistent with sound business practice.


6. In the measurement of B-BBEE compliance, substance will take precedence over legal form.


7. All measurement of B-BBEE initiatives will be based on the actual level of B-BBEE compliance at the date of measurement.


8. Any representation made by an entity with respect to B-BBEE compliance will be supported by appropriate evidence or documentation.


7.2        Guiding Principles


The following key principles have been adopted by the CA profession with regard to the implementation of the Sector Code:


1. All B-BBEE initiatives of the CA profession will be measured and reported on an annual basis.


2. The fundamental principle that all measurement of B-BBEE initiatives is based on the actual level of B-BBEE compliance at the date of measurement, will be adhered to.


3. The CA profession will adhere to economic principles when implementing the B-BBEE initiatives so as to ensure the sustainability of the B-BBEE process.


4. The CA profession will account for and present all B-BBEE initiatives in accordance with the substantive and economic reality and not merely the legal form.


5. The CA profession will ensure that there is uniformity on how B-BBEE initiatives are recognised and measured so as to facilitate a comparison of B-BBEE progress between different constituencies.


6. The CA profession undertakes to promote information that is free from material error and bias and can be depended upon by users to be a faithful representation of that which it could reasonably be expected to represent. Any representations made will be capable of being supported by appropriate evidence and documentation.


7. The CA profession undertakes to provide information pertaining to the B-BBEE initiatives that is complete.


8. The CA profession undertakes to provide available information on a timely basis.


9. The Codes make provision for a transitional period where measurement may be undertaken in accordance with the Generic Scorecard or score achieved in respect of code 100 and 200 based on a formula. For purposes of the CA profession there will be no transitional period and measurement will be undertaken in accordance with the gazetted scorecards.