Today's Labour News

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news shutterstockBusinessLive reports that the final version of the Financial Sector Code has been gazetted with a crucial omission, namely a mandatory scorecard for retirement funds that would have seen more black principal officers and trustees appointed.  

During negotiations, a mandatory scorecard emerged where retirement funds could earn up to eight points for appointing black principal officers, executives and senior management and a further eight points for black trustees with voting rights.  A total of 80 points could be earned for procuring services from black-owned asset consultants, actuaries, employee benefit providers and asset managers.  This scorecard has disappeared from the final code and has been replaced by a voluntary dispensation.  The scorecard was withdrawn during negotiations due to concerns regarding the cost of compliance for funds, Financial Sector Charter (FSC) Council CEO Isaac Ramputa said.  But the Association of Black Securities and Investment Professionals (Absip) strongly disagreed with suggestions that the scorecard would have cost retirement funds.  "The cost of a verification certificate is less than R30,000 per annum for a retirement fund," said Asief Mohamed, an Absip representative to the FSC Council.  "This excuse is not valid."

  • Read this report by Moyagabo Maake in full at BusinessLive

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