NOTICE ON GROUP EXEMPTION APPLICATIONS
Detail for NOTICE ON GROUP EXEMPTION APPLICATIONS
EXEMPTION APPLICATIONS NOTICE 01 0F 2022
SUSPENSION OF THE PROVISIONS RELATING TO GROUP REPORTING EXEMPTIONS AS CONTAINED IN THE AMENDED FINANCIAL SECTOR CODE
The Financial Sector Transformation Council (FSTC) constituencies in a special sitting of the Council held on 05 August 2021 took a consensus resolution to withdraw the group reporting exemptions provision and the Group Reporting Guidance Note, GN000(a) on the basis that future applications are to be considered in the context of the Generic Codes of Good Practice which requires each entity to report separately. Subsequent to this decision and with the endorsement of the DTIC, the FSTC issued a notice informing all financial institutions that the FSTC will no longer be considering group reporting exemption applications and that all group reporting applications submitted in terms of Paragraph 8.4 by reporting entities will be considered in line with the provisions of Section 10(4) of the B-BBEE Act No. 46 of 2013.
Following the publication of the notice, the FSTC continues to receive group reporting exemption applications and as such the FSTC re-visited and discussed this matter at a Council meeting held on 31 March 2022. Taking into consideration the impact of group reporting and in particular the critical need to measure the realistic pace of transformation for each of the various industries within the sector, the Council concluded that group reporting exemption applications will no longer be accepted and considered and that each measured entity must, in accordance with Section 10(4) of the B-BBEE Act No. 46 of 2013, report annually on their compliance to the Council.
Furthermore, entities are advised that the resolution to no longer consider group reporting applications will remain in effect until such a time that it is retracted by the FSTC.
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Issued by the FSTC Secretariat
24 May 2022