Legally enforce BEE in financial sector, Numsa Investment’s Msibi says
Khandani Msibi says regulators in the insurance industry regulate in the interests of the big players and stifle new entrants
Interventions such as black economic empowerment (BEE) have not assisted in shifting racial economic barriers because they are voluntary and what is needed is legislative enforcement, group CEO of Numsa Investment Company Khandani Msibi said on Wednesday. Msibi was speaking on behalf of the Black Insurance Owners Association of SA in a presentation to a public hearing on the transformation of the financial services sector organised by Parliament’s finance and trade and industry committees. He said the financial sector had not changed much since 1994 and remained "fundamentally untransformed". Black-owned insurance companies’ share of the R2.2-trillion insurance industry was a mere 1%. The banking, retirement and medical aid industries were also untransformed. Msibi said the financial sector charter had failed because it was voluntary. Regulators regulated in the interests of the big players in the industry and made it difficult for new entrants to gain access. He urged that all regu...
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