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

Industry Charters

Financial Services  Charter

Code Series FS400: The Measurement of the Skills Development Element of Broad-Based Black Economic Empowerment

3. Key Measurement Principles


3.1 Subject matter of this paragraph: This paragraph relates to the following statements within the CoGP:


3.1.1 Code 400 Statement 400; and


3.1.2 Code 800 Statement 804.


3.2 Applicability of the CoGP: The provisions and principles contained in the relevant statements apply to all financial institutions, subject to the following variations:


3.2.1 The measurement principle referred to as "Adjusted Recognition for Gender" does not apply to the measurement of Skills Development contributions under this Code.


3.2.2 Each financial institution undertakes to develop and report on the following programmes: Career pathing through the provision of the necessary support to Black People at all levels to facilitate progress in their agreed careers; The implementation of appropriate mentorship programmes within companies in the sector to assist in the rapid development of Black Employees; Targeted recruitment to expand the base of potential recruits; Cultural diversity and gender sensitivity programmes at various levels of management in the financial institution, with the intention of promoting a vibrant, enabling and diverse institutional culture; and Where possible, in conjunction with institutions of higher learning, introduce training programmes in line with the NOF requirements and establish undergraduate and post graduate diplomas and degrees in financial services.


3.3 Measured entities receive points on the Skills Development scorecard only if:


3.3.1 They are in compliance with the requirements of the Skills Development Act and the Skills Development Levies Act;


3.3.2 They are registered with the applicable SETA;


3.3.3 They have developed a Workplace Skills Plan; and


3.3.4 They have implemented programmes targeted at developing Priority Skills generally, and specifically, for Black Employees.


3.4 Expenses on scholarships and bursaries for employees do not constitute Skills Development Expenditure if the Measured Entity can recover any portion of those expenses from the employees or if the grant of the scholarship or bursary is conditional. Nevertheless, if the right of recovery or the condition involves either of the following obligations of the employee, the expenses are recognisable:


3.4.1 The obligation of successful completion of their studies within the time period allocated;


3.4.2 The obligation of continued employment by the Measured Entity for a period following successful completion of their studies is not more than the period of their studies.


3.5 Any Skills Development expenditure by a Measured Entity that is an ABET programme is recognisable as a multiple of 1.25 of the actual value of such Skills Development expenditure.


3.6 Skills Development expenditure includes any legitimate expenses incurred for any Learning Programmes offered by a Measured Entity to its employees evidenced by an invoice or appropriate internal accounting record.


3.7 Skills Development expenditure arising from Uncertified Learning Programmes and informal training cannot represent more than 15% of the total value of the Measured Entity's Skills Development expenditure.


3.8 Legitimate training expenses include:


3.8.1 Costs of training material;


3.8.2 Costs of trainers;


3.8.3 Costs of training facilities, including catering costs;


3.8.4 Scholarships and bursaries for employees;


3.8.5 Course fees;


3.8.6 Accommodation and travel; and


3.8.7 Administration costs such as the organisation of training including, where appropriate, the cost to the Measured Entity of employing a Skills Development Facilitator or a Training Manager. Only the portion of the costs attributable to the organisation and management of Black Employees will be counted.


3.9 Salaries and wages paid to an employee participating as a learner in a registered Learnership or a category "B", "C" or "D" learning programme of the Learning Programme Matrix can be counted as Skills Development Expenditure for the period of the programme within the Measured Entity's measurement period.


3.10 The Financial Sector Council will undertake an annual audit of the adequacy of the Skills Development expenditure target.