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management staff as well as unemployed people and learnerships. Internal
and category F training is fully recognisable under the FSC and not limited to
only 15% as in the Generic Codes. BEE

With relation to the Procurement element, targets for supplier spending are set
for the first three years, where after targets on this element increases. Enterprise
and Supplier Development targets are also based on the previous year’s ‘net
profit after tax’ figure whereas targets in the Generic Codes are based on the
‘net profit after tax’ figures of the financial year under review. Bonus points are
available for procurement expenditure with intermediated black professional
service providers, black stock brokers as well as black fund managers.

The Socio-Economic Development element contains a new concept namely
Consumer Education, which requires a financial education programme
complying with certain consumer education standards, to be implemented for
identified target markets. Targets for socio-economic development contributions
and consumer development contributions are set at 0.70% and 0.40% of ‘net
profit after tax’ respectively, for all financial institutions except international banks
and reinsurers who are exempted from Consumer Education.

Turnover thresholds for Exempt Micro Enterprises (EMEs) and Qualifying Small
Enterprises (QSEs) remain at R10 and R50 million respectively. EMEs and QSEs with
at least 51% black ownership automatically qualify as level 2 contributors to BEE,
whereas 100% black owned EMEs and QSEs are automatically awarded a level
1 BEE contributor status. The FSC makes provision for automatically qualifying
entities to confirm their BEE status level by way of an affidavit, although these
entities may also elect to confirm their BEE status by way of a BEE certificate,
issued by an accredited BEE verification agency.
As the FSC scorecard does deviate in some aspects rather substantially from
the Generic Codes, it is advisable to make a careful study of the FSC and if
necessary, enlist the help of a BEE specialist to plan to meet the requirements
of the FSC.

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