The final version of the Financial Sector Code has been gazetted and was at the government printer on Tuesday with a crucial omission: a mandatory scorecard for retirement funds that would have seen more black principal officers and trustees managing more than R4-trillion in investable assets.
The scorecard was withdrawn during negotiations due to concerns regarding the cost of compliance for funds, Financial Sector Charter (FSC) Council CEO Isaac Ramputa said.
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.