ALLAN GREENBLO: Financial sector code a unique transformation initiative
Financial institutions support the sector empowerment code because it encapsulates the principles for their continued relevance
The financial sector code (FSC) outstrips even the stop-start CEO Initiative in its promise to effect societal change. Gazetted late last year, it places financial institutions in the forefront for delivery of radical economic transformation. The institutions, and myriad operators within the sector, have committed themselves to the means without the blights. Think not only of the money — potentially many millions of rand annually from stipulated proportions of institutions’ net after-tax profits are involved — but also consider defined scorecard monitoring and measurements to accelerate the pace in correction of inequalities. These range from support for smaller enterprises to empowerment financing, consumer education, preferential procurement and infrastructure investment. The list is exhaustive, yet targeted. Where aspects of the code are voluntary, as with the obligations on retirement funds, there’s a clear "comply or else" implication. Funds are allowed time, for instance, to g...
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