Financial sector feels the radical transformation heat
MPs push for far-reaching transformation measures, while Treasury stresses buy-in through a joint process
Momentum for the radical transformation of the financial sector is accelerating, with MPs pushing for far-reaching measures, such as greater black control of banks. There is broad agreement that the Financial Sector Charter is not meeting expectations and that the sector — which includes banks, insurance companies and asset managers — has performed poorly against the commitments made in 2002. The EFF has proposed legislating for a minimum level of black and female ownership of companies in the sector. Standing committee on finance chairman Yunus Carrim believed that care had to be taken with such a proposal given the perilous economic situation, in which investors were very "jittery". Carrim did not believe that another charter by itself would be sufficient and suggested that if the targets were not met voluntarily by the industry within 18 months, the government would have to legislate for this. The Treasury has proposed that another Financial Sector Charter summit be held — possib...
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